• Hiring a new employee is an exciting occasion for a small business. However, it does call for a lot of paperwork. 

    The onboarding process requires new employees to review and sign several documents. These papers range from government forms to records specific to your business. Regardless of their purpose, it’s important to make sure new hires address these documents shortly after they join your company. Let’s break down the various documents required for onboarding a new employee.

    The Different Types of New Hire Forms and Documents

    Onboarding documents have many different functions. Some are needed to collect important information from a new employee. Others are designed to properly inform new hires about certain practices and give them the ability to sign up for certain benefits. Essential onboarding documents are broken up into a few different groups. 

    • Initial hiring documents
    • Employee eligibility forms
    • Tax forms
    • General business documents

    Regardless of their intent, it’s best to have employees review and sign these documents on their first day if possible. While the paperwork may not be all that exciting, it’s best to get these steps out of the way early and create a good foundation for new hires.

    Initial hiring documents

    The onboarding process starts with a job offer. There are a few documents that new hires will need to sign in order to get the job and help ensure that they’re the right fit for a company. As such, all prospective employees should fill out the following documents to get the onboarding process into motion.

    Job application form

    The job application form is the very first official document required to onboard new hires. While this form may seem obvious, it’s crucial to have it on file so that you have information such as work history, education, and personal data available in case any issues were to occur in the future. Some states have requirements for including specific statements in job application forms, so having this document can help you prove that you followed any legal obligations.

    New employees should sign this document to verify all the information and consent to a background check. It’s also important to note that this form should be included even if a job candidate already submitted a resume. You can then hold onto this document for a full year along with any notes or other details documented during the hiring process. 

    Offer letter and/or employment contract

    The offer letter is another standard part of adding on a new employee. Still, it’s important to not only give employees an offer letter and employment contract, but also attach a copy to the employee’s file. This inclusion will just give businesses another document to reference in case any issues arise in the future regarding that contract or offer details.

    Drug testing records

    Whether a company wants to drug test a job candidate upfront or conduct tests throughout employment, you’ll need to provide employees with a copy of the company’s drug testing policy. You should also maintain records of any test results for at least one year, although some regulations may increase the minimum time frame for saving these records.

    Employment eligibility forms

    Once you’ve decided on the perfect candidate, the government requires them to confirm their eligibility to work in the United States. There’s only one document that falls under this section, but it’s a very important one: Form I-9.

    Form I-9 requires both the new employee and the employer to fill out parts of the document. New employees must fill out and sign the first section of Form I-9 on their first day of employment. Employers are then required to review the first section for completion.

    Employers also must also fill out the second section of Form I-9 within three business days of the date of hire. This step requires new employees to provide unexpired original documentation to prove their identity and employment authorization. This documentation can come in may forms such as passports, driver’s licenses, Social Security number cards, and more. U.S. Citizenship and Immigration Services provides a complete list of acceptable Form I-9 documents online.

    Once an employer has the required information, they can fill out the remainder of the form. Employers do not need to fill Form I-9, but they should keep it on file for at least three years after the employee’s first day or for a full year after an employee is terminated. This will allow employers to present the form if any authorized U.S. government officials visit the business for inspection.

    Tax forms

    Employment eligibility is just the first step toward completing government-mandated documents for new employees. Employees are also required to fill out Form W-4 so that you can properly manage payroll for their business

    Form W-4 is used so that employees determine the federal income taxes that their employers should withhold from paychecks. As such, new hires should fill this form out right away so that employers can apply the information toward their first pay period. Some states also have their own version of Form W-4 for local income tax withholding, while others simply use the federal document.

    Employers aren’t required to regularly submit these forms, but they should keep them on file for reference and in case the IRS requests a copy to compare withholdings. Each W-4 should be kept on file for at least four years after these taxes are either paid.

    General business documents

    While some onboarding documents are required by law, many others are simply a means to provide new hires with all the information they’ll need at their new company. These papers can range from means to gather payroll and benefits information to simply giving individuals more detail about their roles and other company materials. 

    Direct deposit form

    Direct deposit is a convenient arrangement for both employers and employees, but businesses need some details to set up this payment method. New employees that will receive direct deposit will need to fill out a bank account information form to ensure that their paychecks go to the right place. These forms should require the employees to include:

    • Their full name
    • Bank account number
    • The account type (checking or savings)
    • Name and routing number of the bank

     Benefits forms

    If a business offers a benefits package to its employees, that company should provide information about those benefits to new hires and have them opt in or out of programs. These programs can include:

    • Health insurance
    • Life insurance
    • Retirement plans
    • Disability insurance
    • Wellness programs

    Employers will need to hand out different benefits forms for each offering in their plan. These forms should have details about each offering and give employees the chance to opt in for them if they’re eligible. Even if they opt out, employers should retain those signed documents as evidence that they were informed of benefits options and chose not to enroll in them.

    Mission statement and strategic plan

    Some onboarding documents are simply to help new employees get more accustomed to a business. A company mission statement, strategic plans, or any other relevant documents will help new hires understand the company’s culture and goals. This type of information will help them understand how their role fits in with the organization’s vision and fit in from day one.

    Employee handbook

    As long as an organization has an employee handbook, it’s best to give a copy to new employees right away. A good handbook lays out all the important elements about a business – company policies, procedures, and other key details. 

    Handing out a handbook to new employees allows them to consult this document about key questions they may have about an organization. A handbook also serves as a noteworthy compliance tool, acting as proof that employees had prior information about company policies. As such, you’ll also want employees to sign an employee handbook acknowledgment form to verifying they received and read through the handbook.

    Job description and performance plan

    Every employee should be given a clear direction of what their role should accomplish and how their success will be measured over time. Employers should provide new hires with a document that lays out responsibilities, expectations, and potential timelines of what should be accomplished during their first few months. Having employees sign off on this document will not only help them understand expectations, but also provide employers with written guidelines when it comes time to evaluate performance.

    Employee onboarding checklist

    There’s a whole lot that needs to happen in the first few weeks on the job. An onboarding checklist is a detailed action plan that documents all the training, tasks, and other key items that will happen at the beginning of someone’s tenure with the organization. A solid outline will help keep everyone on track and give new employees a sense of reassurance that their new employer has a plan and values their position.

    Security and parking signoffs

    If the job calls for special security or parking details, employers should lay out all that information and arrange for special clearances in time for a new hire’s first day. Employees should receive any forms they need to sign and key items or information related to parking, entrance, and more. These items can include parking passes, keys, and passcodes. Documentation for these items should also include details on next steps if an employee leaves the company or is terminated.

    Emergency contact information and plans

    Everyone hopes that they’ll avoid any emergencies, but it’s important to be prepared just in case. New employees should be given relevant contact information for managers and other individuals in case anything happens after hours. Employees should also provide the company with an emergency contact in case something happens to them on the job as well. Finally, provide new hires with any disaster readiness plans if the company has any created.

    Set Up Your New Employees for Success

    While new hires call for a lot of paperwork, a good onboarding process can make for an easier transition into your company. Of course, gathering all these documents is just the first step in a long process. It’s important to set the right tone for new employees so that they can help your company grow.

    Fortunately, GMS can help your business build an onboarding process that not only sets up new hires for success, but also takes the administrative work off your hands. Contact GMS today about employee onboarding management and other critical human resource functions.

  • It’s easy to recognize certain milestones, but it’s not as simple to think ahead and avoid growing pains. Reaching the 50-employee threshold is a momentous occasion, but it also means that it’s time to consider some potential changes. Aside from taking the right steps to make sure your company is compliant with federal and state laws – don’t worry, we cover compliance considerations in another post – here are five ways to prepare your business for growth.

    A management team helping run a 50-employee business. 

    Embrace Process Documentation

    As you employ more people, it’ll be harder to keep everyone on the same page. You may know the most efficient way to complete something, but you can’t always be there to share this knowledge. Is there a specific way that something at your business should be done? Write that process down so that everyone has access to it. 

    Process documentation allows you to identify the core parts of your business and document the steps that it takes to consistently perform important tasks the right way. As you grow, these standard operating procedures can help train and guide new employees so that they know what to do and how to do it. 

    You should also document any tools or procedures that make a process more efficient. Creating operational best practices or process templates will benefit your workforce, while making your business more efficient. Make these documents available to your employees so that they save time instead of starting everything from scratch.

    Improve Company-Wide Communication

    Good communication is a crucial for any organization, but it can be hard to keep your company connected as it grows. In fact, it can become nearly impossible to keep regular face-to-face communication possible with everyone, especially if you have employees who work remotely. As a result, it’s important to give you and your employees ways to initiate company-wide conversations. For example, a cloud-based collaboration tool like Slack can help employees stay connected, while video conferencing platforms like Zoom can benefit remote employees and improve communication with clients and customers, depending on your business.

    In addition to providing more ways to communicate, you should also consider creating a comprehensive communication strategy for your business. This strategy can help your company establish a recognizable brand and consistent messaging for people outside of your business. This way, your employees have guidance not only on what to say, but also how to say it. According to the Society for Human Resource Management, a communication strategy should include the following elements:

    • Top-down strategies where senior management sets the tone for a cascading series of messages
    • A budget for various types of communication vehicles depending on need
    • An evaluation process to determine the right messaging for specific situations
    • A method for generating feedback and using it to shape follow-up messages
    • A customized delivery approach with communication materials that are easy to understand

    Entice Employees with New Benefits

    While the 50-employee threshold makes it a requirement for your business to offer health insurance, that doesn’t mean you shouldn’t consider providing other benefits as well. Finding good, new talent – as well as keeping current employees – is critical for a growing company. 

    An attractive benefits package can help you reward your current employees while enticing better candidates to your business. Aside from health insurance, Employee Benefits News found that employees looked for the following types of benefits:

    • Monetary bonuses (54 percent)
    • Paid vacation (53 percent)
    • Retirement plan with defined benefits (51 percent)
    • Flex-time (51 percent)
    • Employer matches for retirement plans (50 percent)
    • Ancillary health insurance benefits (vision, dental, etc.) (48 percent)
    • Paid sick leave and personal days (48 percent)
    • Profit sharing (40 percent)

    In addition to these benefits, consider some other options that may be especially valuable to your employees. Flexible work times and environments are a great perk for employees with young children. Roughly 80 percent of millennial employees show interest in companies that offer student loan repayment assistance. It’s hard to grow without good employees, so think about ways to make sure your benefits package matches the quality and type of job candidates you need to succeed.

    Build a Management Team with Defined Roles

    It’s common for small companies to employ people who can do a little bit of everything. That goes for the owners, as well. While there’s a time where it’s fine to juggle multiple roles, you’ll reach a point where you need to build a management team and assign different responsibilities.

    It can be hard to step away from having a hand in every aspect of your company, but you can’t be an expert at everything. Consider creating an organizational chart and identifying people who can oversee key aspects of your company. This management team can take the burden off you so that you can focus on what you’re best at – the continued growth and success of your business.

    Find an HR Partner

    A good management team isn’t the only group that can help you ease your workload. A growing company has a mounting list of internal administrative responsibilities, from handling payroll for all your employees to taking the measures required to keep your business compliant with federal and local laws. Proper management of these responsibilities take both HR expertise as well as time. Fortunately, a Professional Employer Organization (PEO) can help you on both accounts.

    The right PEO allows you to cost-effectively outsource critical HR functions so that you can spend your time elsewhere. A PEO partners with your company to co-employ your workforce as it relates to payroll administrationemployee benefits, and any other functions that you need managed. This process gives you access to a range of HR experts who help you make informed business decisions without losing control of your company.

    You don’t have to grow your company by yourself. Whether you just hit the 50-employee milestone or only have a few workers, Group Management Services can help you manage key administrative needs. Contact GMS today about how we can make your business simpler, safer, and stronger through comprehensive HR services.