Hiring Contractors – Part 1

Posted on Leave a commentPosted in COO, Hiring Consultants, Hiring Contractors, HR

Independent Contractors or Independent Consultants are people who do work for your company who are not employees, corporations or LLCs. Hiring independent contractors is attractive to startups because it allows them to quickly bring on talent without the headache of setting up payroll and benefits. Independent contractors also make it easy to bring people onboard for as long or as little as needed without worrying about employment laws that apply to hiring and discharging of regular employees. Without the added expense of benefits, matching FICA payments, and perhaps even office space and equipment, independent contractors can offer real savings and cash flow benefits to a startup organization.

But there are some legal pitfalls to hiring independent contractors that most startups (and many established companies for that matter) don’t understand. This post is the first of a three part series that helps to explain some of those potential pitfalls, so that you can make an informed decision before hiring an independent contractor. Read more…

Setting Up HR – In-House or PEO

Posted on Leave a commentPosted in COO, Getting Started, HR

Human resources encompasses a broad array of business functions. There is the obvious sourcing, hiring and firing of employees. However, retaining employees, training employees, managing benefits, setting compensation policy, overseeing contractors, new hire orientation, managing corporate culture and a host of other functions also fall into the domain or share a dotted line to the HR function.

One of the first questions a startup venture needs to address – at least as soon as the founders hire their first employee or contractor – is who will be responsible for the HR function. Getting this right is critical to the success of a venture, as it is the first five to ten people in an organization that will establish the company’s culture for years to come. Read more…