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  • 6 Tips for Making a Winning Business Presentation
  • 3 Key Things You Need to Know About Financing Your Business
  • How to Use Your Business Plan Most Effectively
  • How to Pitch Your Business Plan in 6 Minutes
  • The Main Objectives of a Business Plan
  • The Basics of Writing a Business Plan
  • 12 Reasons You Need a Business Plan
  • What to Include and Not Include in a Successful Business Plan
  • A Step-by-Step Guide to Presenting Your Business Plan in 10 Slides
  • The Top 4 Types of Business Plans
  • 12 Ways to Set Your Business Goals and Objectives
  • How to Assess the Potential of Your Business Idea
  • How to Fund Your Business Through Friends and Family Loans and Crowdsourcing
  • How to Fund Your Business Using Banks and Credit Unions
  • How to Fund Your Business With an SBA Loan
  • How to Fund Your Business With Bonds and Indirect Funding Sources
  • How to Fund Your Business With Venture Capital
  • How to Fund Your Business With Angel Investors
  • How to Use Your Business Plan to Track Performance
  • How to Make Your Business Plan Attractive to Prospective Partners
  • When to Update Your Business Plan
  • How to Write the Management Team Section to Your Business Plan
  • How to Create a Strategic Hiring Plan
  • How to Write a Business Plan Executive Summary That Sells Your Idea
  • How to Raise Money With Your Business Plan's Executive Summary
  • How to Build a Team of Outside Experts for Your Business
  • Use This Worksheet to Write a Product Description That Sells
  • What Is Your Unique Selling Proposition? Use This Worksheet to Find Your Greatest Strength.
  • Customers and Investors Don't Want Products. They Want Solutions.
  • 5 Essential Elements of Your Industry Trends Plan
  • How to Identify and Research Your Competition
  • Who Is Your Ideal Customer? 4 Questions to Ask Yourself.
  • How to Identify Market Trends in Your Business Plan
  • How to Define Your Product and Set Your Prices
  • How to Determine the Barriers to Entry for Your Business
  • How to Get Customers in Your Store and Drive Traffic to Your Website
  • How to Effectively Promote Your Business to Customers and Investors
  • What Equipment and Facilities to Include in Your Business Plan
  • How to Write an Income Statement for Your Business Plan
  • How to Make a Balance Sheet
  • How to Make a Cash Flow Statement
  • How to Use Financial Ratios to Understand the Health of Your Business
  • How to Write an Operations Plan for Retail and Sales Businesses
  • How to Make Realistic Financial Forecasts
  • How to Write an Operations Plan for Manufacturers
  • How to List Personel and Materials in Your Business Plan
  • What Technology Needs to Include In Your Business Plan
  • The Role of Franchising
  • 6 Steps to Getting Your Business Plan In Front of Investors
  • The Best Ways to Follow Up on a Buisiness Plan
  • The Best Books, Sites, Trade Associations and Resources to Get Your Business Funded and Running
  • How to Hire the Right Business Plan Consultant
  • Business Plan Lingo and Resources All Entrepreneurs Should Know
  • How to Write a Letter of Introduction
  • What To Put on the Cover Page of a Business Plan
  • How to Format Your Business Plan

How to Create a Strategic Hiring Plan There's no "I" in team. Here are some ways to surround yourself with motivated employees who drive your company to success.

By Eric Butow • Oct 27, 2023

Key Takeaways

  • What to consider before hiring
  • What most employees look for in a job
  • How to add and retain employees

Opinions expressed by Entrepreneur contributors are their own.

This is part 2 / 8 of Write Your Business Plan: Section 3: Selling Your Product and Team series.

One of the beauties of being an entrepreneur, as opposed to a solo practitioner or freelancer, is that you can leverage the activities and skills of all the people you employ. This is one of the secrets to building a personal fortune. And it's one you can use even if you didn't happen to be born with a silver spoon in your mouth or an oil well in your backyard.

The decision of how many people you want to manage is entirely up to you. It depends on the time commitment you cannot make to do other tasks or the need to perform skills that aren't your strengths. Part of hiring other people is to have them handle aspects of the business that you cannot or should not be doing. After all, we have different personalities, interests, and passions.

There are very few one-person businesses unless you are including independent contractors. Businesses are run by teams of people, from two or three to thousands, and team members excel in many areas. You also need to factor in how much you expect to grow. Some entrepreneurs want to retain a small, easy-to-manage business, while others want to build an empire.

Organization Chart

"For many businesses, personnel is the largest expense, so it's important to think through the forecast and make adjustments to the timing of planned hiring based on your revenue projections, profitability, and the cash you have available to meet payroll obligations," says Noah Parsons , COO at Palo Alto Software. "You'll also want to think about how your business is organized and what the management structure will look like. You can use tools such as an organizational chart to help figure out your personnel plan and then add that to your business plan.

An organizational chart, or org chart, graphically sorts your company into its major functional departments—finance, administration, marketing, production, etc. It's the quickest, clearest way to say who is in charge of what and who reports to whom

Hiring Considerations

To help you in your strategic staffing projections, consider these factors:

  • What are your key business objectives? ( Hint : These may be things such as increasing sales or reducing costs. The idea is to make sure that your hiring decisions fit your strategy. If, for example, geographically expanding your retail store chain is a primary objective, a staffing plan will have to include managers for each new location.)
  • What skills will your employees need?
  • What new skills will current employees need to possess? ( Hint : You may find you are better off with fewer workers who are more highly trained or have different skill sets.)
  • Which of these skills are central to your business—your core competencies? ( Hint : You may want to outsource peripheral functions. Accounting, legal matters, and human resources are frequently outsourced by companies whose main business is elsewhere and who find it doesn't make sense to spend the effort to attract and retain skilled employees in these areas.)
  • List the jobs and job descriptions of the people it will take to provide these skills. ( Hint : The idea here is to identify the employees whose job titles may mask their actual function in the organization so you can figure out how many people, and what type of people you really need to include.)
  • Determine how many people you will be hiring and what your budget will be for these positions. Will there be any job sharing? ( Hint : Make sure your salaries are commensurate with the going rates in your region. If you can pay more, you can attract a higher level of employees. If you pay less, try to find nonmonetary benefits that you can offer, such as telecommuting, which saves employees time and money on getting to and from work each day.)

Now, you should be able to accurately predict how many and what kind of people you need to achieve your long-term objectives.

Adding and Retaining Key Employees

If you want your business to grow, you'll want to have key employees who share your vision and goals. Sometimes, you will find an established individual, like a highly acclimated chef for your restaurant or an art director with years of experience for your company. You may not always know what the future holds when you bring someone on board, but you believe they have what it takes to become a key employee. These are individuals that you can envision moving up the path of ascension. Either way, you should make it clear in your business plan which key positions you want to fill and how you plan to find the people to fill those roles.

Of course, the economy will factor into your decision on whom to hire and how much you can afford to pay them. In a struggling economy, more highly skilled employees will be seeking work, but you may be unable to risk high salaries. In such instances, you may opt for trial periods before committing to full-time salaries. You may also look for independent contractors for key positions. Remember, it's much easier to find skilled people in various aspects of business than it is to learn everything yourself. When the economy is going well, however, you will have to up the ante to bring on key employees because there is more competition. Then there is your plan to hold onto key employees, which is important to include in your business plan.

An organizational chart graphically sorts your company into its major functional departments—finance, administration, marketing, production, etc. It's the quickest, clearest way to say who is in charge of what and who reports to whom.

What Employees Want

The things that make employees want to come to work for you and stay vary. For employees, choosing whom to work for is a highly personal decision. That's why it's crucial to understand the individual needs of your key employees so that you can give them exactly what they want. If you offer only a higher salary to an employee whose most important concern is that she works at a job offering flexible hours so she can care for an elderly parent, then you probably won't retain that employee.

Here are some common concerns that drive employment decisions:

Benefits Paid holidays and sick leave, health insurance, and retirement plans such as 401(k)s are among the benefits listed as most desirable by employees.

Compensation Salary, bonuses, stock options, profit sharing, and auto mileage allowances are among the most important compensation issues to employees.

Other perks On-site childcare, flexible schedules, telecommuting, paid memberships to business groups, and health perks such as yoga classes or free medical screenings are also important to employees

This list is by no means comprehensive. Employee needs are as complex as humanity. One person may stay because she likes the view out her window on a high floor; somebody in an identical office may leave because heights make him nervous. One of the most important needs, especially for highly motivated employees, is maintaining a constant atmosphere of learning, challenge, and advancement. If you can find a way to let your employees grow as your company does and feel a sense of ownership and inclusion, they're likely to be more conscientious and motivated.

More in Write Your Business Plan

Section 1: the foundation of a business plan, section 2: putting your business plan to work, section 3: selling your product and team, section 4: marketing your business plan, section 5: organizing operations and finances, section 6: getting your business plan to investors.

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Subscribe for exclusive access, how to hire employees for small business in 8 simple steps.

business plan hiring employees

Written by Grant Olsen | March 7, 2022

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Hiring an employee interview for small business

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It’s essential for modern leaders to know how to hire employees for a small business . Why? Because the best way to ensure team success in the future is to make the right hires today.

A surprising number of entrepreneurs fail to grasp this concept. They rush the hiring process and blame their haste on a variety of factors. But small businesses will always be operating under pressure, and there’s never a luxurious time to recruit, hire, and train a new employee .

Yet, these shortsighted business owners act surprised when issues arise down the road. What did they expect? You can’t rush through a nuanced process and expect good results. It’s akin to mixing up an incomplete bread recipe, failing to let it rise properly, removing it from the oven 5 minutes early, and then complaining that the finished product is doughy and flavorless.

Devoting adequate time to your hiring doesn’t just refer to the recruiting and interviewing process. You’ll also need to think about what the role looks like in the future. It’s common for shortsighted businesses to roll out a red carpet for new hires, then leave standing at the end of that carpet, with no clear direction on where they can go in the future.

Never post a position that doesn’t have at least the early outline for evolution and growth. Otherwise, you’ll either get stuck with a stagnant employee or present a frustrating dilemma for a motivated individual who wants to progress.

Research shows that 97% of employees want to learn and grow in their roles. As Ryan Roslansky explains :

What’s more, opportunities to learn and grow have emerged as the strongest driver of work culture. Executives and managers should make it clear that ongoing education is integral to personal career growth and can be done on company time. To help foster a learning culture, encourage employees to block out calendar time for learning each week or month — and do the same. If managers have dedicated learning time, employees will be more likely to follow suit. It can be stressful to juggle learning with looming deadlines or client needs. Remind yourself and your team that the investment in learning will pay off for their careers and the organization, and give specific guidance in employee growth plans.

So how do you layout a hiring plan that sets your new team member up for success in the short and long term? Follow these 8 essential steps for how to hire employees for small business to find out how.

Build your business button

1. Develop Your Strategy

Kick things off by looking into your company’s major needs. What’s the most crucial role that needs to be filled? Resist the urge to simply backfill after an opening arises. Given the progress and evolution you’re pursuing, it’ll probably be rare that a position is identical to its predecessor.

You’ll also need to think about where the role can go in the future. Any quality candidate will already be interested in this factor, so you should be prepared to discuss it in interviews.

Additional considerations should include the job market in your industry and region. Who else is hiring for similar roles? What are they offering? Knowing the answers to these questions helps you refine your strategy to the point that your business stands out among the crowd.

Even if you’re feeling pressure to hire, don’t rush this crucial step in the process. The more research you do on the front end, the better results you’ll get on the back end.

2. Create the Description

Your research in the prior step should’ve illuminated the specialized skills you’re seeking and the methods you’ll use to attract top candidates. Both elements are crucial for an effective job posting.

What’s the salary range for this job? Knowing the numbers will support your budgeting efforts and prepare you to have productive conversations with candidates.

Potential sections of your description include an introduction, job description, and preferred qualifications. After writing a first draft of your job description, let relevant managers weigh in. Perhaps they’ll have ideas for ways to set better expectations and highlight the most relevant perks.

3. Make Sure the Paperwork Is Ready to Go

Hiring an employee involves more than just your internal processes. You’ve also got to consider administration elements such as tax documents, direct deposit forms, and non-compete clauses.

The specific paperwork needed will depend on the nature of your business and the country in which your business is based. If you’re approaching your business’s first hire , consult with other business owners to get an idea of what you will need to prepare. If you have hired employees in the past, conduct an audit of those processes to identify the necessary documents to get in order.

This sample list will help kickstart the evaluation:

  • Federal eligibility form (such as the I-9 form in the United States) that confirms the candidate can be hired.
  • Federal tax documents to determine how much money you should withhold from their paychecks.
  • Drug testing consent forms that the employee signs so that you can conduct scheduled or random drug tests (if relevant).
  • Non-compete clause that prevents the employee from joining or starting a competing business for a certain period of time if they were to leave your business.
  • Employee handbook that outlines your code of conduct, policies, and other essential details.
  • An initial contract write-up for the job description
  • Document acknowledgment form that verifies the employee has received and agrees with the documents you’ve provided.

Rather than dealing with piles of papers and hustling around trying to obtain signatures, consider an e-signature service. Not only will the e-signature route expedite the initial paperwork, but it also saves the data in an accessible and safe manner.

4. Post Your Job to the World

The first place your job posting should appear is on your business website . From there, you can add it to relevant job boards. If your ideal candidates use a certain platform, by all means, post your job there. But don’t get carried away, because the broader you spread your posting, the higher the chances of unqualified candidates.

Possible platforms for your job posting include:

  • ZipRecruiter
  • CareerBuilder

Be aware that it might be worth hiring an outside service to assist when hiring for specialized or executive positions.

The Top Mistakes to Avoid when Managing Remote Teams | Lisa Spiden Interview

5. Review the Applications

It’s best to wait until you’ve received at least 20 or so applications before conducting a formal review. This benchmark isn’t always possible, as highly targeted postings might not get as much interest from candidates. But just wait until you have multiple options to compare.

Your first order of business is to evaluate the resumes to make sure they meet the basic qualifications. Each application should go into one of 3 categories:

  • Proceed to interview
  • Not a match for this position, but consider for future roles
  • Not qualified for a role with your business

If you have a large number of applicants who meet the qualifications, move past the resumes and rank them based on the additional details you learn from their cover letters. Competency should be a must, while cultural fit and ambition level are factors that help a candidate rise to the top.

In situations where you don’t receive enough qualified candidates, don’t simply repost the job to the same platforms. It’s worth taking a quick time out to review the wording and see how you can make the listing more relevant, honest, and enticing. For example, you might be using internal nomenclature in the posting that doesn’t line up with the terms candidates are searching for on job databases.

6. Conduct Your Interviews

This stage of the process has historically involved employers testing candidates with difficult questions and skill reviews. While there’s a place for direct queries, you should set your candidates up for success. After all, you want them to succeed. And if you put your new employee through an unfair gauntlet during the interview process, they won’t forget that treatment even after you’ve slapped them on the back and given them the good news that you’ve decided to hire them.

You can help make the interviews better for both the interviewer and the candidate by giving plenty of advance notice. The more time you can give them to prepare, the better. You should also think about sending your questions ahead of time, as this will help you get the most accurate and informative responses.

Based on their resume, cover letter, and any conversations you’ve had with them, think of how you can customize the interview. As Alex Haimann, a recruiting expert, explains :

It is important to note that our process varies. We aim to structure our interviews around the skills we’re looking for from each candidate and give them the opportunity to demonstrate those skills. Because no 2 candidates are the same, naturally, neither are two interviews. Prior to all of our interviews, we share the questions we’ll be asking with candidates.

After the initial round of interviews, narrow the candidates down to your critical few. At this point, your subsequent interviews should become even more customized than before. Here are the key things you should be trying to confirm:

  • Does this candidate have the required skills?
  • Does this candidate have examples of proven results or accomplishments?
  • Does this candidate have the required motivation?
  • Will this candidate elevate the role?
  • Does this candidate have a future here?
  • Will this candidate complement our culture?

You obviously won’t meet any perfect candidates during the interview process. So be on the lookout for an individual who brings nearly everything you were looking for, plus some bonus skills and attributes that you didn’t even think to ask for.

7. Make the Offer

Once a decision is made, follow up promptly with all the candidates. Those who weren’t chosen still deserve the respect of a “thank you” and a brief explanation about how you ultimately decided to move forward with another candidate.

Given the competitive job market, you’ll want to reach out immediately to the chosen candidate. Even if you aren’t aware of other potential offers, you never know when a tantalizing opportunity might arise for them. So lock things down quickly with a generous offer that is tailored to their situation.

Be prepared for the candidate to negotiate your offer. How much higher would you be willing to go on salary, and what additional perks would you be willing to grant if the candidates request them?

This is a great time to double-check that you have everything in place for the new employee. From laptops to server access to a work email address, these details don’t take care of themselves.

8. Welcome the Employee Aboard

Your work is far from over after the offer has been accepted and your new employee joins the team. Now there’s onboarding to handle. Businesses that neglect this final step not only struggle with retention, but their reputation with potential candidates within the industry quickly falls into the gutter.

How do you prepare your new employees for success? Here are the crucial actions:

  • Start with an orientation: This gives you the opportunity to share background on your company and help them understand how you serve customers. You can also use this time to discuss core values and ensure the employee is on board with them.
  • Outline the responsibilities of the job: Because of your familiarity with the business, it can be easy to assume that new employees will be able to easily assimilate into the role. But you’ll need to clearly discuss the details of their role if you want them to be able to move forward with confidence.
  • Connect them with a mentor: The best way to help an employee succeed is by giving them a reliable source of information and encouragement. Let’s be realistic­­–your employee will likely forget most of the orientation details and the responsibilities discussion. Ditto for many of the other important things they’ll learn in their first weeks and months. A mentor or “onboarding buddy” can provide them with real-time information and help them thrive within the unique culture of your business.
  • Entrust them with a project: One of the great travesties of the hiring process is that many businesses bring in top talent, then leave them to languish for several days before letting them even begin to contribute. Your new employees should have the chance to learn the ropes and show their mettle at the same time by navigating a project. The results might not always be stellar, but the learning opportunity will be irreplaceable.

By putting effort into this final step, you’ll prove to employees that you care about their happiness and trajectory. Anyone can put platitudes on their office walls like, “Our people are our top priority,” but actions are the only way to back it up.

Speaking of trajectories, you should be prepared for the role you just filled to take on a life of its own. Remember that job description you wrote early in the process? While certain aspects of it might always be relevant, plan on a major evolution occurring in the coming months and years.

Job evolution is a good thing. Unless you’re a tradition-bound organization that relishes in its own detachment from modern reality, such as the Queen’s Foot Guards at Buckingham Palace, you’ve got to change in order to survive. Otherwise, you’ll find yourself standing around in a red tunic and furry hat while the competition is adapting to what tomorrow brings.

If you’ve paid attention to candidates’ drive and vision throughout the interview process, you’ll ideally have employees who embrace this evolution. Not only will they be okay with it, they’ll be empowered by it.

As Rob Allen explains :

Don’t hire people who rest on their laurels. One thing is certain about ecommerce: The landscape is constantly changing. Strategies that worked 12 months ago no longer work today. And that means your success will ultimately depend on your team’s ability to adapt. That’s why many top ecommerce leaders recommend hiring people with a growth mindset. Just because someone ran a bunch of profitable Facebook ads in 2011 doesn’t mean they still will be able to today […] In other words, you can bring people who are newer to the digital landscape on your team and grow with them. But close-minded people can be really bad hires.

Whether you run an ecommerce business, offer consulting services, or sell custom jewelry, your strategies should always be evolving. And, with the right employees, your team will be able to keep pace.

Building a Business You Can Be Proud Of

Knowing how to hire good employees is as much of an art as it is a science. There are technical details such as tax documents and direct deposit forms, as well as nuances like cultural compatibility and desire for growth.

What’s certain is that the more effort you put into your hiring, the less effort you’ll need to dedicate to firing. You’ll be able to attract better talent and then retain these individuals for longer periods of time.

Want even more strategies for taking your business to the next level? We’ve partnered with proven leaders from across the business spectrum to create a series of free courses. Within these courses, you’ll learn critical skills such as negotiation, financial management, and product launches.

Exclusive free training

About Grant Olsen

Grant Olsen is a writer specializing in small business loans, leadership skills, and growth strategies. He is a contributing writer for KSL 5 TV, where his articles have generated more than 6 million page views, and has been featured on FitSmallBusiness.com and ModernHealthcare.com. Grant is also the author of the book "Rhino Trouble." He has a B.A. in English from Brigham Young University.

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How to Hire Employees for Your Small Business: A Step-by-Step Guide

This guide covers the steps to take when hiring employees for a small business, including writing a job description, interviewing candidates, making offers, and onboarding.

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In the United States, small businesses employ roughly 61.7 million people—that’s almost half of all US employees! Small businesses are vital employers and, as a small business owner, you are likely to find yourself thinking about hiring as your business grows.

In this guide, we’ll break down all the steps to take when hiring employees for your business. This includes writing a great job description, screening and interviewing candidates, making offers, and onboarding advice.

Define your hiring needs

Before you can jump right into hiring, take a look at the state of your business and what you need an employee to contribute. Ask yourself:

  • Where does your business need the most help right now?
  • What tasks do you want to take off your own plate?
  • Do you need someone with a specialized skill set or a jack-of-all trades?
  • Will you have time and resources to train someone, or do you need someone experienced?

Once you determine what you’ll need from your employee, you can start to narrow down on the specifics:

Identify job responsibilities 

Be extremely clear with expectations and job responsibilities from the start. According to a Gallup poll , more than half of U.S. employees are unsure of their expectations at work. This can lead to lack of engagement and poor performance over time.

Determine budget 

Your budget will need to cover a competitive salary, benefits, and hiring costs. Hiring costs can include job posting fees, recruiters, compensation for travel, and even relocation fees. That’s why it can sometimes cost a company as much as $20,000 to hire and onboard a new employee.

Assess your company values

With company values becoming increasingly important to potential employees, you should be prepared to discuss those values and how this new role will fit into the bigger business vision. Make sure to assess whether candidates are aligned with your company mission statement.

Steps to take before hiring an employee

Every state is different when it comes to employment, so we recommend consulting an employment or legal advisor. Below is a general overview of what you’ll need to have in place before you begin the hiring process.

1. Get your EIN

Is this your first hire? Before you hire your first employee , you need to get your Employee Identification Number (EIN) so you can set up payroll . 

Other important considerations:

  • Check legal requirements per state, which range from setting up unemployment insurance accounts to disability payment requirements.
  • Check with resources like the Small Business Administration to determine what other insurance coverage is required before you hire.
  • Make sure you carry workers’ compensation insurance.

2. Write a great job description

When crafting a job description, avoid something generic like: “Seeking a marketing manager. Must have 10 years experience. Interested applicants please apply.” This doesn’t give interested candidates a good overview of your business, your expectations, or the specific skillsets necessary to succeed in the role.

Writing a thorough and eye-catching job description requires some time and effort, but it’s worth it if you want to attract the right candidates.

Some things to consider when it comes to the job description:

  • Include your company values
  • Don’t be vague about the role and its responsibilities – instead of writing something like “Seeking a marketing manager with 10 years of experience”, for example, you’d write “Seeking a marketing professional with extensive social media and email marketing experience. Familiarity with Hubspot and Sprout Social required. Experience using Google Sheets preferred. Must have 7-10 years of experience in a customer-focused marketing role.” 
  • Include salary range* (As of January 1, Colorado, California, Rhode Island and Washington require salary transparency in job descriptions. Check your local and state laws for the most updated information.) 
  • Include other benefits that will offered, like health insurance , time off, and retirement benefits

Sourcing potential candidates

On average, it takes about three to six weeks to hire a new employee . Here are some strategies for finding potential candidates.

Network, network, network

Networking is a great way to find direct candidates, as well as get information on where other business owners have found great employees. We suggest seeking out networking groups both locally and nationally to find groups that aligns closely with your industry and hiring needs. 

Utilize job boards and social media

More than ever, candidates are looking to social media websites like LinkedIn, Twitter, and Facebook for a job. In fact, 73% of millennials used a social network to find their last position. 

Employee referrals

Some companies offer referral bonuses ranging from $250 to $7,500 to their current employees as an incentive to refer those in their network. Think about ways you can motivate your employees to find more people just like them!

Work with a recruiting firm

The candidate search can take up a lot of your time. If you don’t have the bandwidth to run the hiring process yourself, get in touch with a reputable recruiting company. They source candidates all day, everyday. It may mean spending a little more money—it’s often 15-25% of the first year salary for the employee—but it will help take some of the load off your shoulders. 

Screening and interviewing candidates

Once you have a few candidates lined up, you’ll want to move them through a hiring process as efficiently as possible. The average number of interviews for a typical hire is two to four. 

Here is a general guide for how to interview candidates:

  • Create a screening process: On average, a corporate job post attracts 250 resumes . Even if you’re not seeing that volume, having a repeatable process in place is imperative. If you don’t have a Human Resources team to sift manually through resumes, you could try an automatic resume software like CVViZ or Freshteam that can screen candidates for you.
  • Conduct initial phone calls: This is a great way to screen candidates and doesn’t need to take more than 15-30 minutes. 
  • Hold in-person interviews: Come prepared with role-specific questions, not boilerplate ones. Also, keep in mind how many rounds of interviews you plan to schedule. Too many rounds can actually be counterproductive and you may miss out on top talent. 
  • Check references and conduct background checks: This should be the final piece of the interview puzzle, but is no less important.

Making a job offer

So, you found your ideal new employee. Here are the steps to take when making a job offer:

1. Determine salary and benefits

Check the market value for jobs in your city so you can offer a fair rate. New salary transparency laws are making it easier to evaluate the going compensation for comparable roles. Start by looking at what other employers are offering and then compare against your budget. We also recommend utilizing easily accessible resources like the U.S. Bureau of Labor Statistics or research done by third-parties like Payscale. 

Remember to budget for the entire compensation amount, including:

  • Health insurance
  • Employer taxes
  • Unemployment insurance
  • Any other applicable costs

2. Offer the job and explain next steps

Every company is different, but in general, job offers should be in writing. If you aren’t sure where to start, utilize offer letter templates for guidance, like these from Forbes . 

Your offer should  include the following:

  • Official title
  • Office location
  • Signature section

3. Be prepared to negotiate terms and conditions

The candidate may come back with a counteroffer, whether it be their salary, benefits, or equity (if applicable). Since 45% of candidates negotiate, plan your response in advance based on how much you have in your budget.

Onboarding and training

Onboarding and training will set the tone for your new hire’s success at your company. Studies have shown that 69% of employees who have a beneficial and efficient onboarding experience end up staying with their company for three years, so don’t skip this part!

Here are some of our recommendations for onboarding your new hire:

  • Create a new hire paperwork checklist that includes the documents they need to bring on their first day. You will need their information to complete new hire reporting paperwork.
  • Create a software setup checklist to remind yourself of the systems they will need to access.
  • Provide an orientation that covers how the office operates, where things are, and who to go to for questions on key topics.
  • Plan meet-and-greets with other employees and other important people to know, like contractors or clients.
  • Create a 30/60/90 day plan for their first three months.

Don’t forget, retention is just as important as hiring. After all, you spent all that time, money, and energy to find them in the first place, so you want them to stick around. Here are some ways to continue supporting your employees after day 1:

  • Offer comprehensive training
  • Create a mentorship program
  • Consistent quarterly check-ins and feedback loops
  • Provide ongoing, structured opportunities for growth

As a small business, it can be quite overwhelming (and costly) to hire a new employee, but it’s also an exciting time for your company! Before you dive in, be sure to know exactly why you want to hire this employee and be clear about expectations from the very beginning. Take the time to attract the right people to your company and continually guide them through the onboarding process with structure and support. Not only will this ensure the success of your employees, but also your business overall.

Novo Platform Inc. strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide any financial or legal advice, and you should consult your own financial, legal, or tax advisors.

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How to write a business plan for recruitment in 2024 (template included)

Roger Smart

  • Published on June 3, 2020
  • Updated on February 12, 2024

business plan hiring employees

Writing a business plan in recruitment has always played a crucial part in the interview process for a number of recruitment agencies around the world.

A comprehensive business plan can demonstrate a recruiter’s commitment, knowledge and commercial acumen. During economic uncertainties in 2023, these qualities are more important than ever.

Arriving at an interview armed with a comprehensive business plan before you’re even asked will no doubt set yourself apart from other recruiters.

During economic uncertainties, managers will need to present a business case to leadership for budget approval in order to make a hire. Your business plan will be an important element of this business case. An impressive business plan could be the difference between landing an offer today, or falling into a pipeline of other candidates.

In this article, we share a step-by-step guide outlining how to create a comprehensive business plan. We walk through the key components and include examples.

At the end of the article, you can download a free recruitment business plan template which is tailored towards the key components mentioned in this article.

A business plan should be packed full of relevant information but should be compressed and to the point. Avoid verbiage, stay specific and keep to 4 – 6 pages.

Introduction

Start with a title. Include your name and the company you’re writing the business plan for. A little personalisation will go a long way.

Underneath your title, outline the objective of your business plan and again personalise it towards the agency you’re interviewing with. While you have the hiring manager’s attention, this paragraph is an opportunity for you to demonstrate how comprehensive your business plan is. The aim is to capture the hiring manager’s interest so they continue to read each component:

“The objective of this business plan is to outline the value I can add to employer’s name.

In this business plan, I have highlighted my specialism, hiring activity in my market, my candidate and client strategies, my methodology, how I plan to recruit through economic uncertainties in 2023, my competition and my personal revenue projections over 12 months.”

You can use this paragraph as a way to introduce your business plan verbally if you’ve called up a hiring manager. You can also use this extract in a cold email.

Your specialisation

This is a crucial positioning statement for your value-add. It sets out precisely where your network and experience lies and what you intend to bring to the table in your new role.

Your specialisation can be described clearly by outlining what roles you will specialise in, what industries you will target, what level of seniority you will focus on and what geographies you will cover.

For ease of reading, you can use each component as a title and use bullet points to expand upon your answers.

Taking a Technology recruiter as an example:

What roles I will specialise in:

  • Product Management permanent roles
  • UX/UI Design permanent roles

What industries I will target:

  • Series A – C funded technology startups (high investment, high growth and high volume of roles)

What level of seniority I will focus on:

  • Mid to senior (120 – 180k salary range for Product Managers, 140 – 200k salary range for Designers)

What geographies I will cover:

  • Based in Singapore, the local market will be my core market
  • Secondary markets include Jakarta, Bangkok and Kuala Lumpur due to less competition from recruiters and high volume of roles

Hiring activity trends

The hiring activity trends section provides an opportunity for you to demonstrate and portray your knowledge of the market.

The 3 important components of this section are: hiring activity over the past 3 years, hiring activity for next year and how you predict hiring activity to shift beyond that.

Utilise your own knowledge of the market but back it up with research gained from reputable sources related to your market e.g. Tech in Asia, Tech Crunch, Channel News Asia, The Straits Times or The Financial Times.

You’ll want to cover how hiring activity has increased or decreased, what the drivers of growth are in your industry and what the threats and challenges are within your sector.

Candidate strategies

Moving on from market trends, this section indicates how you will acquire candidates for your desk. It offers an opportunity for you to demonstrate the experience you’ve learnt in candidate management from your previous firm, but also an opportunity for the employer to ensure that your approach aligns with theirs.

3 key components of this section include: how you will generate candidate leads, what challenges you expect to face and how you will overcome these challenges.

Taking a Front Office Banking & Financial Services recruiter as an example:

How do I plan to generate candidate leads:

  • Direct headhunting using a LinkedIn Recruiter account, this costs approximately $X amount, the key benefits being access to a high volume of InMails and enhanced search capability. This has been the sourcing tool for 60% of my previous placements

Challenges I expect to face:

  • In light of economic uncertainties in 2023, highly sought-after candidates may be risk-averse and may not see this as a good time to move jobs

How I will overcome these challenges:

  • I will develop relationships with these candidates for the future but I will adjust my sourcing strategy accordingly by increasing volume of direct approaches

Client strategies

A similar section to candidate strategies but geared towards clients. Arguably more important than candidate strategies during a recession as the market could be job-short – even in the good times, strong business development capabilities in recruiters are harder to find.

This section includes 6 key components including how you plan to onboard new clients, how you plan to sustain relationships with clients for repeat business, what industries your clients are in, the challenges you expect to face and how you will overcome these challenges.

Take these bullet points as a basic example:

How I plan to onboard new clients:

  • During a recession, I plan to cultivate relationships by helping and consulting clients on non-recruitment related issues, such as advising clients on the current state of the market
  • I plan to generate leads by making 25 cold calls per day during the ramp-up period, to again offer support and advice where needed, and to leverage any open roles
  • A soft approach of connecting with hiring managers, HR contact and C-Level candidates on LinkedIn, to establish working relationships and eventually convert into clients

How I plan to sustain relationships with current clients and win repeat roles:

  • The most important way to sustain relationships is by offering a service that is superior to competitors. That is by being transparent, sticking to deadlines and delivering results
  • Regularly catch up with clients on a monthly basis to see how they’re doing and see if you can generate new roles
  • Keep yourself updated on company news and congratulate clients on milestones e.g. if they generate a Series C round of funding

What industries I will target clients in:

  • Series A – B funded technology startups
  • During a recession there is less of an appetite to use agencies due to an unprecedented volume of great candidates available in the market
  • Offer free support to companies currently not using agencies, provide an impressive service and convert into paying client post-recovery

The 6th component is “examples of target clients” and this is where you can really demonstrate tangible market knowledge. Use company names, find the potential contact in each company and add your comments, such as the volume of roles you expect from that client. 5 examples should be enough to peak your hiring manager’s interest.

You can use a table to display this information with ease:

It goes without saying that you should never be tempted to use information that is proprietary to your previous employer. This information can be openly found with some basic LinkedIn research.

My methodology

Are you a recruiter that is focussed on crunching numbers? Are you a recruiter who is focussed on cultivating long-term relationships? In this section, you can include a few quick bullet points to explain how you approach recruitment. This information gives your hiring manager an indication about whether you hold similar values and whether you have similar working styles.

How you can adapt to recruiting during a possible economic downturn

This section is a new one in response to market conditions in 2023 but can demonstrate how you are prepared to deal with current and upcoming challenges.

You can use this section as the title and include bullet points to outline how you will adapt to these market conditions.

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My key competitors

Which recruiters and agencies offer the greatest competition? Demonstrating your knowledge in this area highlights that you are commercially aware outside of your core market.

Include about 5 different competitors who are directly competing in your patch. You can use the table below to display this information:

Personal revenue and target projections

In many business plans, financial projections are of utmost importance and can demonstrate your commercial acumen. If you’ve ever watched Dragon’s Den, you’ll know what happens when you don’t know your numbers!

Project your personal revenue for 4 quarters. You can start your calculations by predicting the average annual salary of a candidate in your patch. You can project your average percentage fee agreed with clients and from there you can calculate your average fee. Once you have this, you can predict the amount of placements you’ll be making per month.

Make sure your revenue projections are realistic and achievable. Avoid the temptation to predict vastly optimistic revenues, especially during a possible recession. You must allow time to ramp-up and there must be a logical relationship between your historical and predicted revenues.

The plan only includes project revenue. Your historical revenue should be on your CV.

Take the below as an example:

My predicted average annual salary of candidates:

My predicted average percentage fee agreed with the client:, my predicted average fee:, my predicted average placements per month, my projected revenue over 12 months.

Underneath, you can also include the KPIs you will set yourself to guide you in achieving these numbers. For example, you can set yourself a guideline for how many CVs you need to send, how many candidate meetings you need to arrange, how many client meetings you need to arrange and so on.

The template

We’ve constructed a free template built around the components mentioned above, so you can create your own for when you reach out to hiring managers.

To download this template, please add your email below and you’ll be redirected to the template.

By downloading our busines plan, you agree to our  Privacy Policy and Notification Settings .

This step-by-step guide should give your hiring manager a clear idea of your plan. If executed successfully, you’ve already demonstrated your commitment, knowledge and commercial acumen before even attending an interview.

The way you’ve structured your plan will give your hiring manager a very clear indication of your methodology and whether you’d fit their structure. Keep in mind that if your methodology is focused on high volume recruitment, it’s not going to work well with an executive recruitment agency.

As a next step, learn this plan inside and out. Be prepared to pitch your plan to your hiring manager and answer detailed questions surrounding each component.

Leave your interviewer with no room for concern and secure that role! Lastly, if you enjoyed the article, please consider subscribing or following us on LinkedIn to have new articles for recruiters like this delivered directly to your inbox.

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As Founder of Charterhouse Partnership, I led the opening of 5 international offices, hiring & training hundreds of recruiters. Please subscribe to our weekly newsletter where I share my insights on the recruitment industry.

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All About People

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

All About People (AAP) began out of the desire to contribute to this community, just as communities have fed All About People’s proprietor over the years. Although originally from a larger market, the proprietor realizes the need in the southern Willamette Valley for a personnel agency that fills a void left by other temporary and permanent placement agencies. AAP matches specifically skilled workers with clients, saving businesses time and money, while providing for its employees with honesty and honor. This requires a high level of communication. It means asking open-ended questions and listening, not talking. This means knowing the local market so AAP can really serve each client and employee, not just “sell” them our goods. AAP is quality service.

The long-term vision includes a number of offices throughout the southern Willamette Valley. The proprietor sees the challenge in this vision, not in the growth itself, but in training and encouraging all AAP personnel to treat each client and employee with the same care and with the same level of communication.

Managing our Growth AAP is a sole proprietorship that will convert to an S Corporation. As a new corporate entity, AAP will be treated as a start-up in this business plan. During the past couple of years the proprietor provided all services. In Year 1, the company will add a part-time office staff person and an employment specialist. In response to this growth, AAP will have a procedures manual for in-house staff to assure that the information is clear. In addition, AAP will provide employees with regular training within the divisions to assure they understand the details of the work they are doing daily. Year 2 projections include a receptionist, another employment specialist, and a field representative. In Year 3, AAP will examine the feasibility of opening a branch office in the Salem, Bend, or Medford/Ashland areas.

The Market AAP is structured like other temporary and permanent placement agencies. However, it will serve clients with needs for select, specialized professionals rather than clerical or light industrial workers. Several businesses in Portland, Oregon provide a similar service to specific groups of people, but there are none for the Willamette Valley. AAP has five divisions, targeting the following areas of expertise:

  • Editors/Writers

Event Planners

Graphic Artists

  • Interpreters/Translators.

Services AAP will handle recruiting, including reference checks, skills evaluation, preliminary interviewing,  and screening of all employees for its clients. AAP acts as an extension of the client’s human resource department, assuring that there is open communication between supervisor and employee, and assisting with any troubleshooting or problem solving that may be needed.

Financials The company’s start-up requirements are $55,464, of which $7,600 will be provided for by the owner’s personal investment. The rest will be obtained through loans.

We expect to be able to charge a 50% markup to our business clients. Thus, if an employee is being paid $10 per hour, we are charging the client $15 per hour. The company predicts that it will be able to produce sales of approximately $300,000 by Year 3. The company does not have any direct cost of sales; we track payments to placed individuals as regular payroll.

Sbp, employment agency business plan, executive summary chart image

1.1 Objectives

AAP is structured like other temporary and permanent placement agencies. However, we serve clients with needs for select specialized professionals, rather than clerical or light industrial workers. Several businesses in Portland, Oregon provide a similar service to specific groups of people. AAP followed the model of one placement firm described below.

A contract engineering firm places temporary workers who are hardware and software engineers. Employees earn between $80- $100 per hour and approximately seven employees are placed per month. The firm recruits through its website, advertises in newspapers, magazines, and trade publications. Incentives offered to contingent workers include medical, dental, and disability insurance, 401(K), and a reference finder’s fee for placement referrals. They find their employees are 60 percent male, 40 percent female, and ages spread evenly.

AAP serves the business client by locating a professional worker, interviewing and screening that worker, setting up interviews if necessary, and administering all hiring paperwork. The company runs payroll and bills the client bi-monthly. AAP will also manage the professional, staying in close contact with the client and communicating with the worker regarding any personnel issues that may arise.

The professional worker is served with employment opportunities at no cost; pay rates that are within industry standards; and health insurance may be purchased, if a worker becomes eligible, at a group rate starting at $124/mo. AAP will pay $65/mo for any coverage chosen from the group package.

1.2 Mission

All About People’s mission is to contribute to the community by filling a need for specialized, professional, contingent workers. The company will provide workers with a safe and independent environment. It will also provide businesses with a high-caliber of employee available for project or permanent work. All About People listens to individual needs and customizes personnel solutions for both businesses and workers.

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Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

AAP is a temporary and permanent placement personnel agency working solely with skilled, professional workers and Willamette Valley businesses. AAP differs from other temporary and permanent placement agencies because of our skilled workers. The company believes that the temporary industry pays only cursory attention to providing businesses highly qualified workers for permanent and non-permanent positions. AAP has five divisions, targeting the following areas of expertise:

AAP does not provide general clerical, light industrial, engineers, accountants, nurses, or other medical technicians.

AAP does the following for each client:

  • Recruiting (reference checking)
  • Skills evaluation (preliminary interviewing)

AAP conducts regular evaluations: AAP checks in with the supervisor and the worker during the first week on the assignment. AAP then checks in as agreed with the client. AAP acts as an extension of the client business’ human resource department assuring that there is open communication between supervisor and employee, and assisting with any troubleshooting or problem solving that may be needed.

Prior to opening our doors, research showed support for the development of a personnel agency working solely with professional contingent workers and Willamette Valley businesses (see topic 7.3 Supporting Research).

According to the Oregon Department of Employment, Lane County has 31 temporary agency firms with 3200 individuals employed. Total employment figures for Lane County are 250,000; therefore, we support between two and four percent of the population.

Through connections in a variety of areas, AAP is able to locate qualified workers not only through advertising, but through a channel of networking. This past year has shown that qualified, willing workers are certainly available as we currently have hundreds on staff willing and able to work.

2.1 Company Ownership

AAP is a sole proprietorship that will convert to an S Corporation. As a new corporate entity, AAP will be treated as a start-up in this business plan.

The sole proprietor, Sarah Wayland, can be reached at AAP’s office, [contact information omitted in this sample plan].

2.2 Start-up Summary

Projected start-up figures are shown in the chart and table below.

Sbp, employment agency business plan, company summary chart image

The company is uniquely positioned to take advantage of this market opportunity because of the management and field expertise of the proprietor. Sarah Wayland worked in the temporary employment industry for three years with ADIA Personnel Services (now ADECCO) as Area Account Manager (in training as a branch manager): building business relationships; hiring employees; handling employee issues; working with clients during the implementation of ADIA; and opening an additional office in Beaverton, Oregon.

For one year the proprietor was a District Sales Manager at Columbia Distributing, showing a 10% increase on $3.5 million in annual sales. Managing a staff of nine in sales and customer service, she had the opportunity to delve further into hiring/firing, reviewing, incentives outside of salary, and personnel issues.

Most recently, she has spent several years as Funds and Contracts Manager at the Oregon University System; managing four grants totaling $1.5 million annually and all personal service and interagency contracts as well.

The proprietor’s most notable success was bringing the second branch of Cellular West located in Portland, Oregon, from running in the red, to breaking even within four months of its opening. She accomplished this by using motivational tools and providing the sales force with extensive training.

3.1 Products and Services Plan

Changing labor market conditions threaten the concept of full-time permanent employment.

AAP provides a complex blend of services to distinct populations. The company serves businesses through connecting them with the professional contingent work force. It also serves the worker by connecting them with businesses, at no charge, and providing benefits not often provided by other employment agencies.

Market Analysis Summary how to do a market analysis for your business plan.">

All About People (AAP) is a local firm that costs less than a consultant or agency, provides for both project and long-term needs, and has an easy, pay and billing rate system that covers employee payroll and worker’s compensation insurance.

There are a variety of reasons why businesses may need AAP’s services:

  • Spikes in work load
  • Business expands into an area that in-house expertise does not yet match
  • Special events
  • Pregnancy leave or sabbatical
  • Business increases after layoffs
  • Smaller business does not yet have staff on-hand to complete extra projects.

According to economic forecasters, employment agencies and financial services are expected to have the largest industry growth over the next 25 years. The trend toward businesses cutting back on employees and their benefits due to high costs creates the demand for AAP’s services.

Just consider the time, energy, and resources an employer may spend trying to employ a person for a 20-hour task.

In addition to the already lucrative temporary industry, several companies in the Portland Metro Area place professional contingent workers, but the southern Willamette Valley is not currently being served.

The company approaches businesses primarily through networking and cold calls. Our intention is to utilize a PR agency for more coverage as soon as possible. AAP is a member of the area Chamber of Commerce and actively participates in as many activities as possible, the proprietor is a member of the Women’s Business Network, the Professional Women’s Organization, and we are in the process of connecting with the Society for Human Resource Management. Prior to start-up, AAP also surveyed several area businesses about their use of contingent workers. The company will use its website and other marketing materials that describe what services we provide and explain how simple it is to work with us.

AAP advertises in local papers and trade magazines when absolutely necessary, but most often uses the Oregon Employment Department, both community college and university campuses, and the networking groups we are members of to search out the right employee. Prior to the sole proprietor start-up, the company started recruiting by administering twenty personnel surveys and advertising locally to create a staff of qualified contingent workers. This staff will be unaffected by AAP’s corporate restructuring.

4.1 Market Segmentation

The market can be broken down into two segments: the business market segment, and the employee market segment. Both of these segments are lucrative.

Business market targets: The company targets the University of Oregon, Lane Community College, the nonprofit organizations, the publishing industry, the advertising industry, and other large businesses.

Employee market targets: Editors/writers, graphic artists, computer specialists, event planners/fundraisers, and language translators/interpreters working in the business target markets listed above, as well as any applicants with unusual skills and talents.

4.2 Service Business Analysis

These charts demonstrate the types of workers employed, the type of qualified professionals on file to work for the company, and the types of businesses who have used AAP’s services. These statistics cover the 15-month sole proprietorship period from July 1, 1998 through September 30, 1999.

Types of workers employed by or signed up with AAP

Types of employers using AAP

Each and every contact is entered into the database-either in the professionals file if they are a potential candidate, or in the contacts file if they are another type of contact. The client and jobs files utilize the contact and client numbers to automatically fill in the information from the contact or client files. This means no duplicate typing. In addition, the contacts, clients, and professional files all have follow-up sheets attached making daily follow-up easy. Simply pull the file up for that day and all calls that need to be made that day will be marked.

Searching is easy. The check boxes within each professionals file allows us to check for singular or multiple skills and experience with a click and a return.

4.2.1 Competition and Buying Patterns

First form filled out from the moment the candidate calls. Three screens constitute one file: Personal Information; Job Information; Skills. The professional and contact files have a conversation record that will allow easy follow-up with a list daily of those records needing a call.

Interview Form

Directly from the employee forms the Employment Specialist can select the appropriate interview form. This form consists of three sheets: Basic Questions; Other Information/Recommendations; and Reference Checks.

Employee Profile Sheet

From the above information, a profile sheet is generated in hard copy for the inside of each file. This is our second backup system (besides the tape drive) in case of a power outage, etc.

4.2.2 Contact Sheet

This form is used for all other contacts. From here, a contact can be turned into a client by merely typing the contact number in on the client sheet, automatically bringing in all of the information.

In addition, the contacts can be pulled up as a list and can be used to create the client information. The professional and contact files have a conversation record that will allow easy follow-up with a list daily of those records needing a call.

4.2.3 Client Sheet

The client sheet is easily created by filling in the contact number. All pertinent information is automatically entered. The client sheet has its own contact sheet attached generating a daily follow-up list. The client files can also be pulled into a handy contact list.

Strategy and Implementation Summary

AAP is completely service minded, customizing personnel packages and offering the most it can to both employers and employees. The company brokers professional workers to Willamette Valley businesses. Because we serve two distinct groups of people, both businesses and employees will be considered equally important to AAP.

The company consists of five divisions, targeting the following types of workers and needs in businesses:

Computer Division

  • Computer Application Specialists
  • Computer Hardware Specialists
  • Computer Programmers
  • Network Administrators
  • Web Specialists

Editor/Writers

  • Multi-lingual
  • PR/Marketing
  • Fundraisers
  • Large and Small

Language Interpreters and Translators

  • Multiple Languages
  • Person-to-Person

Within these categories, we originally set up a system of single sheets on card stock and filed them in binders. Since then, an electronic database has been created by one of our professionals. With the push of a button, AAP can search for a client or an employee needed.

Businesses and employees will be able to communicate with AAP via both new technological and traditional methods. Our Web page provides information about AAP including what professional fields we serve, what clients we are working with, and what services we offer. A second-generation Web page will provide information about employees for businesses through a password-protected area. AAP forwards candidates’ resumes and other information through a variety of methods: phone, fax, personal visit, mail, and the Web page.

In August 1999 we moved the offices to the center of town. Accounting is handled electronically by the proprietor through QuickBooks, with the complex needs handled by our CPA. All payroll is generated through the payroll service, Paychex. The office is furnished with all of the technology needed to operate on a daily basis, increase market share, and serve clients.

5.1 Competitive Edge

When a business is contacted and expresses interest in contingent employees that the company can provide, the following procedures will be followed:

  • Consult with client and create a follow-up plan.
  • Complete the contact, client, and job sheet in the database.
  • Print one of each and forward a copy of the job sheet on yellow paper to the employment specialist.
  • File original sheets in the appropriate binders.
  • Search for matches in the database and pull each folder that looks like it will work.
  • Review that folder to assure a match.
  • Call each potential candidate and discuss the job and pay to its fullest.
  • Fax, e-mail, or otherwise contact client with information and/or resumes for review.
  • Schedule interviews or make a decision on appropriate candidates.

5.2 Sales Strategy

When an employee seeks to work with the company, the following procedures will be followed:

  • Complete the professional’s form in the database.
  • While completing this sheet, screen the employee for experience levels, requiring professional experience in each arena they wish to work.
  • Set up an interview with the employment specialist if the professional is qualified.
  • Create a file for each employee and place all paperwork, along with a copy of the professional’s form.
  • Keep in touch with the professional quarterly if nothing comes up, more often if at all possible.
  • When the professional agrees to a position, they will be supplied with an employee policy manual, pieces of letterhead for invoicing, and will complete the IRS I-9 and W-4 forms prior to beginning work.

5.2.1 Sales Forecast

Our sales forecast projections are presented in the chart and table below. Three years annual projections are shown in the table.  The chart shows first year monthly forecast.  First year monthly table is included in the appendix.

Sbp, employment agency business plan, strategy and implementation summary chart image

5.2.2 Target Market Segment Strategy

The pay rate data will be determined by changing market factors including business demand.

Our experience shows that the following is true in regards to pay and bill rates. A “good deal” for most temporary agencies is a 50% of pay rate markup. Thus, if the pay is $10, the bill is $15. However, we have traditionally used a flat markup that seemed appropriate. Pay and bill rates generally are outlined as follows:

Editors Most editors require between $25 and $35 per hour, and our history has shown a $10 per hour markup is acceptable. One exception is in the technical arena, garnering between $45 and $55 per hour pay; again a $10 per hour markup is typical.

Writers The only writing we have done is creative for [client name omitted], and we paid $15 with a $10 markup.

Event Planners Event planners often will work for between $12.50 and $25 per hour, depending on the length of the job, requirements, and experience needed. We find a $5 per hour markup on the $12.50-$17.50 is reasonable, and a $10 per hour markup on anything over $17.50 per hour.

Fundraisers Fundraisers can start at $10 per hour (nonprofit) and go up to $20 per hour. This usually depends on client and length of assignment. Bill rate markup for nonprofits is $5 per hour, others between $7.50 and $10 per hour.

Graphic Artists Entry level beginning at $12.50 per hour, intermediate at $15 per hour, and a top of the line professional at $25 per hour. The exception may run about $50 per hour. Bill rates are between $7.50 per hour markup ($12.50-$15), and $10 markup.

Language Interpreters This is a tricky arena. Pricing depends on the language (typical/atypical) and the length of the assignment. Interpreters have been known to work for as little as $15 per hour and for as much as $35 per hour. A $10 per hour markup is acceptable.

Language Translators This division is difficult as each language and situation varies slightly. Translators tend to work by page or by word. Technical translation can be as much as $.30 per word. Other translation can be $10 per hour (an hour a page). We are unsure of markup at this time, but would suggest 50% of pay rate.

Computer Specialists:

  • Application-Starting at $12.50 an hour based on Xerox experience. Markup $5 per hour.
  • Programmer-Starting at $20 an hour based on AlbertIQ experience. Markup $10 per hour at a minimum. Try for $15.
  • Web Designer-Entry level positions can start at $10 per hour with a markup of $5. Project work typically starts at $15 an hour, markup at least $10 per hour.
  • Administration-Pay rates range between $50 and $75 per hour, with a preferred markup of $25 per hour.

When determining the bill rate, additional expense factors to remember above the pay rate are 15% employer taxes, advertising, and staff time to fill the position.

5.3 Milestones

The company has an outstanding client list and an incredible number of qualified employees available. AAP has a good reputation for providing qualified people in a timely manner.

AAP just moved its offices and in 2000 will add employees. The company will soon have one front office person, one employment specialist, as well as the proprietor who will concentrate on sales and running the business. We own all necessary equipment and are in the process of acquiring more to make our jobs easier. Most notably, we are in the process of completing our customized data base.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

In a variety of settings the proprietor of AAP has strong management experience. The proprietor has the skills to not only listen well, drawing out a person’s needs through open-ended questions, but also has the ability to recognize people’s strengths and weaknesses. She will draw upon this extensive successful experience in addition to the knowledge collected over a period of 18 years working professionally. Much of the “people” skills have been developed during the seven years spent in management roles. This experience, along with a varied background, supports AAP’s goals.

AAP’s objectives are threefold:

  • To provide high quality, experienced, professional workers to businesses that are currently relying on the instability of word-of-mouth contacts, and are spending much of their time and resources (and, therefore, money) locating such workers;
  • To provide these workers with a path by which to reach the employer without spending their own time, money, and energy finding the work; and
  • To use this opportunity to make the contingent work force a better place for both the employer and the employee.

The long-term goal of the company is to franchise and/or to become multi-location, and eventually sell this business.

Management is a style, a belief, and a strategy.

In managing our clients, AAP will communicate regularly with them, setting up a schedule that meets their needs. The company will set goals for retention of clientele and strive to reach those goals by building relationships, listening to the client’s needs, and meeting those needs with a smile on our faces. We will take responsibility for our errors and the outcome.

In managing our workers, AAP will communicate regularly with them, providing them with an employee manual to minimize their confusion, and offer them the best pay and benefits possible. AAP will set goals for retention of employees and strive to reach those goals by treating each employee with respect, provide protection when appropriate, and do everything within our power to assure a healthy working environment.

This is a relationship business. AAP will manage all clients and employees through relationship building.

During 1998-99 the proprietor provided all services. In 2000 the company will add a part-time office staffer and an employment specialist. In response to this growth, we will have a procedures manual for in-house staff assuring that the information is clear. In addition, we will provide employees with regular training within the divisions to assure they understand the details of the work they are doing daily. 2001 projections include a receptionist, another employment specialist, and a field representative. In 2002 AAP will examine the feasibility of opening a branch office in the Salem, Bend, or Medford/Ashland areas.

6.1 Payroll

All About People runs its payroll twice a month. Each professional will be given a check schedule when they work with AAP. Each check covers the previous two weeks.

In order to process payroll; AAP must receive a professional’s signed invoice the Wednesday prior to payday. The invoice, must be on AAP letterhead and include: name, social security number, mailing address, dates of work completed, location worked (at home, at the client’s office), one or two sentences describing what tasks were completed, and how much time was spent each day. At the bottom there must be a place for the client to sign and date in acceptance of the work to date. The original will be submitted to AAP, the client will receive one copy, and the professional will keep a copy.

AAP is unable to provide payroll advances. If a check is lost in the mail, we must wait seven days from the date of mailing, and then if the check has not arrived we will stop the check at the bank and have one reissued.

6.2 Benefits

Because we value our employees, we have employee group health insurance available, and contribute a major portion of the monthly premium. According to the Insurance Pool Governing Board (IPGB) employees must work at least 17.5 hours per week. Employees who work intermittently or who have worked fewer than 90 calendar days are not eligible. IPGB also states that all carriers may decline to offer coverage to the business or to any employee.

Technically, All About People is employer of the professionals we place. This means that we are responsible for covering the worker’s compensation insurance, running payroll, and that we are the ones to whom each employee is responsible. We understand that this can be tricky when employee professionals are working with a client, so we want to describe the expectations of this relationship:

  • If the professional doesn’t understand the work or assignment that has been given by the client, then discuss the work with the client.
  • If there are issues at work, the employee should inform AAP and then speak with the client.
  • If these issues continue, the employee should talk with AAP immediately.
  • If the professional feels they are being harassed at work they should let AAP know immediately.
  • If the employee should be being asked to perform tasks other than the original assignment, the employee should talk with AAP before beginning any tasks other than the original assignment.
  • If the professional is being asked to work overtime (more than 40 hours per week), they should let us know immediately.

AAP does not guarantee either work or wages when you join us to become an AAP employee. We will, of course, strive to keep you as busy as possible. AAP is also not able to guarantee an hourly wage prior to the assignment beginning. If you work on a job, and complete the work successfully, you will be paid at the agreed rate.

This employment relationship differs from others because you, AAP, or the client may end your employment with or without notice and with or without reasons. However, if you accept a job with AAP, we do expect you to finish the assignment.

Marketing Strategy

AAP’s target market is both businesses and professional workers. Phase one of the marketing plan will target the University of Oregon, the technology industry, and the top 500 businesses in Eugene through networking and cold calling. Phase two will target small businesses with less than five employees because smaller businesses may not have the in-house capability to locate, evaluate, and hire potential professional contingent workers through a small PR campaign.

7.1 Businesses

We began marketing the businesses through several personnel surveys. The University of Oregon Alumni Association, University of Oregon Foundation, and University of Oregon Human Resources Department, as well as Symantec’s Human Resources director were approached for information regarding their need for professional temporary and permanent workers. These initial interviewees have all (with the exception of U of O HR Dept) become clients within the first year of business. After these personnel surveys were complete, we adjusted our recruitment of professional workers to meet the demand.

Another tactic was joining multiple business groups. AAP became a member of the Eugene Chamber of Commerce and attends the weekly greeters meetings; the Women’s Business Network and attends the monthly meetings; the Professional Women’s Organization and attend the monthly meetings; as well as the City Club, keeping a pulse on what is happening in the community, attending as the proprietor sees fit.

The next approach is face-to-face cold calls. The tools for these calls are simple-a business card and a brochure. The information collected during the cold call is vital: how many employees does the business have; in what areas have they experienced a need for professional contingent employees; and who is the appropriate contact.

7.2 Professional Workers

Our beginning point in marketing to workers was approximately 30 personnel surveys to professional contingent workers, building the foundation of our database.  AAP intends to recruit workers through advertising in the newspaper and appropriate trade magazines, trade shows, the University of Oregon career center, and by referral. We have found that each division within the company requires a different approach for recruitment. We try not to depend on newspaper advertising as we find the results are moderate. Results are far better with the employment department for some areas, with the U of O for others, and also through a series of developed contacts for the other divisions.

7.2.1 Trust

In order to build trust with both businesses and employees AAP will follow through as promised. We will treat each business, employee, and ourselves, with integrity. AAP will communicate clearly, asking businesses to specify the needs for follow-up service during the time that they employ our contingent worker. We will work with employees to assure that they have a clear understanding of what AAP offers and what we expect of them.

7.3 Supporting Research

“A fading model of employment in the United States envisions a business enterprise with full-time employees who can expect to keep their jobs and perhaps advance so long as they perform satisfactorily and the business continues. Changing labor market conditions threaten the concept of full-time permanent employment. As reported by the Conference Board in September 1995, contingent workers account for at least 10 percent of the workforce at 21 percent of the companies surveyed, or almost double the 12 percent of respondents with that number in 1990. Writing in the Monthly Labor Review in March 1989, Belous estimated that contingent workers constitutes 24 to 29 percent of the labor force in the United States. In August 1995, however, the U.S. Bureau of Labor Statistics (BLS) estimated the size of the contingent labor force at 2 to 5 percent of the total workforce. However, BLS did not count long-term part-time employees, who constitute 90 percent of part-time workers.”       — Society for Human Resource Management, The Contingent Worker: A Human Resource Perspective, by W. Gilmore McKie & Laurence Lipset taken from Chapter 1, What Is a Contingent Worker?

AAP is a service company providing businesses with customized personnel solutions by connecting them with the professional contingent work force. Research suggests that 2000 is an opportune time to be in the Eugene market with this service. Even with all of the evidence that contingent work is the wave of the present, and of the future, the niche of placing contingent workers who are paid $12.50 to $40 per hour is untapped in the Eugene area. However, a few companies place high-end contingent workers in the Portland area.

There are many reasons why businesses are turning to contingent workers. The Economic Policy Institute’s article “ Contingent Work ” by Polly Callaghan and Heidi Harmann explains that:

“Growth in involuntary part-time employment is causing total part-time employment to grow faster than total employment. Another indication of the shift toward part-time workers: hours for part-time workers are growing faster than hours for full-time workers. Temporary employment has grown three times faster than overall employment and temporary workers are being used for more hours. Contingent employment is growing faster than overall employment. Part-timers are disproportionately women, younger, or older workers. There has been a shift away from manufacturing toward trade and services. These structural changes help explain the growth in part-time employment.”

Because of the changing nature of jobs themselves, AAP’s services are desirable to employers of all sizes. Unlike five or ten years ago, many positions are so diversified, or specialized, that it is not financially feasible for an employer to hire a person to fill one position, requiring several areas of expertise. This is not financially wise for the business because of the pay range required to recruit and hire such a talented person (especially in areas such as graphics, design, etc.). The cost of payroll, taxes, benefits, and other miscellaneous staff required to run employees add to the burden of a downsized staff. Contacting AAP and using a professional contingent worker for each portion of a position as needed will solve this dilemma. Currently most businesses locate needed “qualified” workers by word of mouth. With one phone call, e-mail, or connection with our Web page, AAP makes the task easy.

In addition, Oregon’s economy is expected to continue growing, and employment, total personal and per capita income, and population growth rates are expected to exceed the national average (according to the 1997-98 Oregon Blue Book). Although Oregon’s economy is among the best there is an obvious group of contingent workers available to build an employee labor pool. The company draws from a labor pool of qualified contingent workers which consists of people who work at home, retirees, others who wish to work part-time. According to the Oregon University System, approximately 33% of bachelor’s degree graduates will be unable to find jobs in Oregon each year. So, recent college graduates are also a part of AAP’s labor pool.

Research shows that a large percentage of workers who tend to work more than one job are well-educated individuals who have a higher degree of education. According to Oregon Employment Department’s Occupational Outlook Quarterly , Spring 1997, 9.4% have Ph.D.’s; 6.5% a Professional degree; 9.1% a Master’s degree; 7.9% a Bachelor’s degree; 7.9% an Associate degree; and the remaining 15.8% lesser education. According to a Personnel Journal article “ Contingent Staffing Requires Serious Strategy ,” April 1995, there are also many retirees that enjoy doing contingent work.

Financial Plan investor-ready personnel plan .">

The following sections contain the financial information for All About People. Tables show annual projections for three years. Charts show first year monthly figures.  First year monthly tables are included in the appendix.

8.1 Important Assumptions

The financials of this plan are predicated on the following table of assumptions.

8.2 Projected Profit and Loss

Profit and Loss figures are projected in this table.

Employment agency business plan, financial plan chart image

8.3 Projected Cash Flow

Our cash flow estimates are shown in the chart and table below. The owner expects to invest further amounts in the business over the next two years to finance continued growth.

Employment agency business plan, financial plan chart image

8.4 Projected Balance Sheet

Three year annual balance sheets estimates appear below.

8.5 Business Ratios

The table below presents important business ratios from the help supply services industry, as determined by the Standard Industry Classification (SIC) Index code 7363, Help Supply Services.

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The 9 industries where small businesses are hiring the most right now

Seventyfour // shutterstock, small business industries that are itching to hire.

Individuals looking for work may want to search beyond well-known corporations and include small businesses in their job search. Many small businesses are actively on the hunt for employees. In fact, according to a report by the National Federation of Independent Business, 40% of small business owners have job openings they need to—and want to—fill.

Next Insurance used survey data from the National Federation of Independent Business to identify the industries where the highest shares of small businesses are hiring. The NFIB survey was conducted in December 2023 among a random sample of 10,000 small business owners who are federation members, of which 518 responded.

The highest number of businesses with job openings for that period were in construction and transportation, the NFIB survey shows. Businesses involved in agriculture and finance had the fewest number of owners reporting open positions. Part of the difficulty small business owners face is finding qualified applicants, with 33% seeking skilled workers. 

Many owners plan to draw in more applicants by increasing compensation for these open positions—a trend that has continued post-COVID. The Chamber of Commerce recommends small businesses offer flexible work schedules and employee wellness discounts, for example, to remain competitive. These new benefits are meant to enhance the compensation that many business owners already offer, such as health benefits and PTO.

Another NFIB report found that 9 in 10 businesses hiring or trying to hire had few or no qualified applicants. Those interested in construction or transportation—among the other industries most hiring—may find the right fit with a small business. 

In many industries, small businesses struggle to hire and retain employees.

Next Insurance

Transportation and construction businesses are most eager to hire.

Transportation and construction are two sectors of small businesses seeking skilled workers. Some of these businesses help train prospective workers through education programs and apprenticeships.

The transportation industry will need to hire a younger workforce in order to keep positions filled. The U.S. Department of Transportation noted at the 2022 year-end review that approximately one-quarter (24%) of transportation workers were over the age of 55. Additionally, almost half (42.7%) of transit workers are over 55. 

As these employees retire, younger workers will need to take their place. Transportation companies are also increasing their labor force. HireRight's 2022 U.S. Transportation Spotlight Report lists "online job boards, employee referrals, and social media" as the most effective methods to connect transportation businesses with prospective employees. 

The construction industry provides another opportunity for workers seeking employment with small businesses. A Feb 2023 article by Associated Builders and Contractors stated that in 2024, 342,000 additional workers will need to be hired on top of the annual hiring figures in order to meet industry demand. 

Older workers continue to age out of the industry, spurring efforts to make more accessible training and apprenticeship programs. For instance, in 2021, members of ABC invested $1.6 billion to educate people interested in construction.

Story editing by Shannon Luders-Manuel and Jeff Inglis. Copy editing by Paris Close.

This story originally appeared on Next Insurance and was produced and distributed in partnership with Stacker Studio.

The 9 industries where small businesses are hiring the most right now

Employment growth slows but wages set to rise in 2024, say HR professionals

A Sushi Hub store in central Sydney advertises for staff.

Employment intentions are at their lowest levels in at least a year, but businesses are not yet planning mass lay-offs and are expecting to pay workers more in a bid to retain the staff they do have.

The findings come from a survey of more than 600 human resources professionals from the Australian HR Institute (AHRI), representing a mix of small, medium and large employers, from both the private and public sectors. 

The report has only been running for a year, with the latest March quarter survey taken between January 9 and 18.

It found net employment intentions have fallen from +41 in the December 2023 quarter to +33 in the March 2024 quarter.

This figure measures the difference between the proportion of employers that expect to increase staff levels and those expecting to decrease overall headcount.

It indicates overall employment is expected to rise over the coming months, but not by as much as it had been.

The number is based on 36 per cent of organisations planning to increase their staff levels in the March 2024 quarter, with just 3 per cent planning to cut the overall size of their workforce.

A blonde woman with glasses and a pattern shirt smiles

"This is the lowest figure for net employment intentions recorded by our four Work Outlook surveys published to date," observed Sarah McCann-Bartlett, AHRI's CEO.

Economists at the Commonwealth Bank estimate that Australia currently needs to generate about 33,000 additional jobs every month to keep up with the rapid growth in the working-age population.

Fewer employers contemplating redundancies

However, while few employers are planning to reduce their overall headcounts, that does not mean that workers are immune from lay-offs.

More than one in five HR professionals surveyed expected to implement redundancies, although this was down from nearly a third in the run-up to Christmas.

"This may be because the labour market remains tight by historical standards," noted Ms McCann-Bartlett.

"It may also be partly explained by the extent to which Australian employers are adopting alternatives to redundancies.

"This could be because they wish to preserve the skills and knowledge of the existing workforce, or because they are waiting for further information about the Australian economic outlook."

For now at least, 70 per cent of employers reported adopting tactics to avoid or reduce redundancies, such as raising prices (27 per cent), exercising greater control over non-staff operation costs (23 per cent) and reducing the use of non-permanent staff in their organisation (21 per cent).

Among those employers that are planning redundancies, the job losses threaten to be fairly significant — an average of 6 per cent of their workforce.

Wages set to rise as employers seek to retain staff

Even though fewer employers are experiencing recruitment difficulties (38 per cent, down from 48 per cent in December), the institute sees recruitment activity as now being more about replacing staff than adding to the workforce.

Despite this, the drive to retain existing workers appears strong, with many employers seemingly burnt by the experience of acute labour shortages during the pandemic.

"A lack of quality in the labour supply and the high training and recruitment costs associated with replacing staff may still be putting upward pressure on wages in many Australian workplaces," Ms McCann-Bartlett suggested.

"The mean basic pay increase in organisations (excluding bonuses) is expected to be 3.7 per cent in the 12 months to January 2025, significantly up from 2.6 per cent in the 12 months to October 2024.

However, more than a third of employers surveyed said that they did not yet know the extent of wage changes in their organisation for the 12 months to January 2025.

For young people starting out, the survey sheds some light on what HR staff are looking for during recruitment.

The top three skills or attributes desired are communication skills (38 per cent), teamwork ability (36 per cent) and work ethic (36 per cent).

That is if a human ever looks at your application, with more than half of employers using artificial intelligence to filter applications in some way.

HR professionals are most likely to use AI to create online application forms (56 per cent), review CVs (54 per cent), source (53 per cent), and screen candidates (53 per cent).

Certain groups screened out by many employers

Whether by humans or AI, the survey also reveals the high barriers some jobseekers face in searching for work.

Nearly two-thirds of employers actively excluded candidates with certain characteristics during the hiring process.

The most likely to be excluded were people with a criminal record (33 per cent), those with a history of drug or alcohol problems (29 per cent), people with a history of long-term sickness (19 per cent) or mental illness (18 per cent) and the long-term unemployed (16 per cent).

Close to one in seven employers also reported screening out people who identify as neurodiverse or having a disability during recruitment.

The report noted this "represents a loss of potential labour, especially given employers' persistent claims that labour shortages have been one of their biggest challenges".

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IRS begins audits of corporate jet usage; part of larger effort to ensure high-income groups don’t fly under the radar on tax responsibilities

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IR-2024-46, Feb. 21, 2024

WASHINGTON — Using Inflation Reduction Act funding and as part of ongoing efforts to improve tax compliance in high-income categories, the Internal Revenue Service announced today plans to begin dozens of audits on business aircraft involving personal use.

The audits will be focused on aircraft usage by large corporations, large partnerships and high-income taxpayers and whether for tax purposes the use of jets is being properly allocated between business and personal reasons.

The IRS will be using advanced analytics and resources from the Inflation Reduction Act to more closely examine this area, which has not been closely scrutinized during the past decade as agency resources fell sharply. The number of audits related to aircraft usage could increase in the future following initial results and as the IRS continues hiring additional examiners.

“During tax season, millions of people are doing the right thing by filing and paying their taxes, and they should have confidence that everyone is also following the law,” said IRS Commissioner Danny Werfel. “Personal use of corporate jets and other aircraft by executives and others have tax implications, and it’s a complex area where IRS work has been stretched thin. With expanded resources, IRS work in this area will take off. These aircraft audits will help ensure high-income groups aren’t flying under the radar with their tax responsibilities.”

Business aircraft are often used for both business and personal reasons by officers, executives, other employees, shareholders and partners. In general, the tax code passed by Congress allows a business deduction for expenses of maintaining an asset, such as a corporate jet, if that asset is utilized for a business purpose. However, the use of a company aircraft must be allocated between business use and personal use. This is a complex area of tax law, and record-keeping can be challenging.

For someone such as an executive using the company jet for personal travel, the amount of personal usage impacts eligibility for certain business deductions. Use of the company jet for personal travel typically results in income inclusion by the individual using the jet for personal travel and could also impact the business’s eligibility to deduct costs related to the personal travel.

The examination of corporate jet usage is part of the IRS Large Business and International division’s “campaign” program. Campaigns apply different compliance streams to help address areas with a high risk of non-compliance. These efforts include issue-focused examinations, taxpayer outreach and education, tax form changes and focusing on particular issues that present a high risk of noncompliance.

The IRS will begin conducting examinations in the near future as part of the agency’s commitment to ensuring fairness in tax administration.

This is part of a larger effort  the IRS is taking to ensure large corporate, large partnerships and high-income individual filers pay the taxes they owe. Prior to the Inflation Reduction Act, more than a decade of budget cuts prevented the IRS from keeping pace with the increasingly complicated set of tools that the wealthiest taxpayers use to shelter or manipulate their income to avoid taxes. The IRS is now taking swift and aggressive action to close this gap.

In addition to work on corporate jets, the IRS has a variety of efforts underway to improve tax compliance in complex, overlooked high-dollar areas where the agency did not have adequate resources prior to Inflation Reduction Act funding.

For example, the IRS is continuing to pursue millionaires that have not paid hundreds of millions of dollars in tax debt. The IRS has already collected $482 million in ongoing efforts to recoup taxes owed by 1,600 millionaires with action continuing in this area. Elsewhere, the IRS is pursuing multi-million-dollar partnership balance sheet discrepancies, ramping up audits of more than 75 of the largest partnerships using artificial intelligence (AI) as well as other areas .

"The IRS continues to increase scrutiny on high-income taxpayers as we work to reverse the historic low audit rates and limited focus that the wealthiest individuals and organizations faced in the years that predated the Inflation Reduction Act,” Werfel said. “We are adding staff and technology to ensure that the taxpayers with the highest income, including partnerships, large corporations and millionaires and billionaires, pay what is legally owed under federal law. The IRS will have more announcements to make in this important area."

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