U.S. Small Business Administration
PM-2
EMPLOYEES: HOW TO FIND AND PAY THEM
Personnel Management Series
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While we consider the contents of this publication to be of general merit, its sponsorship by the U.S.
Small Business Administration does not necessarily constitute an endorsement of the views and
opinions of the authors or the products and services of the companies with which they are affiliated.
All of SBA's programs and services are extended to the public on a nondiscriminatory basis.
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TABLE OF CONTENTS
INTRODUCTION
STAFFING YOUR FIRM
Setting Personnel Policies
Determining Needed Skills
Finding Applicants
Application Forms
Interviewing Job Applicants
ESTABLISHING A PAY SYSTEM
Who Needs a Pay Administration Plan?
Developing the Plan
Installing the Plan
Telling Employees About the Plan
Performance Evaluation
How Can the Plan Help You?
Updating the Plan
ALTERNATIVE STAFFING SYSTEMS
Temporary Help Services
Employee Leasing
Payroll Service Contractors
Service Contracting
INFORMATION RESOURCES
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INTRODUCTION
Finding and keeping qualified employees are crucial to the success of any small business.
Many staffing issues confront the employer: job descriptions, pay schedules, work rules, motivation,
recruiting, interviewing, hiring, training, supervising, evaluating, retaining and firing.
There also are a multitude of laws and regulations confronting employers, including the following:
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Immigration Reform and Control Act of 1986
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Civil Rights Act (Title VII on employment discrimination)
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Equal Employment Opportunity Act
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National Labor Relations Act
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Fair Labor Standards Act
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Employee Retirement Income Security Act (ERISA), Pensio