Staffing Basics
Why might an entrepreneur decide to hire employees?
To share workloads and responsibilities so the owner is not doing everything alone.
What is the FIRST thing an entrepreneur should consider before hiring employees?
Whether the business can afford to hire employees.
What does compensation mean?
The money and benefits employees receive for working.
What does recruiting mean?
Finding and hiring qualified job candidates.
What is pure risk?
The chance of loss with no chance of gain.
Name one advantage of hiring employees.
Employees help share the work, bring new skills, and provide new ideas.
What does it mean to delegate authority?
To give employees responsibility or decision-making power.
What is the difference between a wage and a salary?
A wage is paid hourly or per item produced, while a salary is a set amount paid regularly.
ame one place entrepreneurs can find job candidates.
College placement offices, employment agencies, or current employees.
How does insurance help manage business risk?
It transfers risk from the business to the insurance company.
Name one disadvantage of hiring employees.
Hiring employees increases expenses such as wages, insurance, and paperwork.
Why are people skills important for entrepreneurs who manage employees?
Entrepreneurs must communicate, lead, motivate, and resolve conflicts.
Give one example of an employee benefit.
Health insurance, paid vacation, sick leave, or retirement plans.
Why are applications and résumés important?
They provide a fair and consistent way to compare candidates.
Why is the law of large numbers important in insurance?
t helps insurance companies predict risk more accurately using large amounts of data.
What document explains an employee’s tasks, responsibilities, and qualifications?
A job description.
Why is replacing an employee expensive for a business?
It costs money due to lost productivity, hiring, training, and reduced morale.
Why must business owners balance employee needs and business costs when setting pay?
Because they must attract employees while keeping the business financially stable.
What is one red flag on a résumé or application?
Unexplained gaps in employment or frequent job changes.
Why do businesses have to pay taxes?
Taxes fund government services like roads, schools, and emergency services.
Why must entrepreneurs accept responsibility even when employees help run the business?
Because the business owner is ultimately responsible if something goes wrong.
Why must entrepreneurs be ready to act with authority when hiring employees?
Because employees need clear leadership and direction.
How can non-pay factors help attract employees?
Flexible schedules, positive work culture, and opportunities for advancement.
What is one type of question employers cannot ask during an interview?
Questions about age, marital status, religion, or sexual orientation.
What is FICA used for?
Funding Social Security and Medicare.