Navigating HR for Etsy Sellers with Kira La Forgia

Running an Etsy shop is no small feat. As your business grows, you might find yourself wearing too many hats, eventually realizing it’s time to hire help. But how do you navigate the tricky waters of hiring, firing, and ensuring compliance with labor laws? In a recent episode of the Etsy Seller Success Podcast, Dylan Jaras welcomed HR expert Kira LaForgia, who shared invaluable advice for Etsy shop owners ready to build their teams.

Here are the key takeaways from their conversation to help you hire smarter, avoid common pitfalls, and create a thriving team for your shop.

Decide Between 1099 Contractors and Employees

One of the first decisions you’ll make when hiring is whether to classify your worker as a 1099 contractor or an employee. While it’s tempting to choose 1099s for perceived simplicity, Kira stressed that this can be a legal minefield. If you dictate when, where, and how someone works, they should likely be classified as an employee—especially in states like California.

Quick Tip: Avoid the trap of defaulting to 1099s. Misclassification can lead to hefty penalties. Instead, embrace your role as an employer and enjoy the benefits of greater control and alignment with your team.

Craft Clear Job Descriptions

Before you even post a job ad, define exactly what you need help with. A well-crafted job description ensures clarity for both you and your potential hires. Kira emphasized that clarity in responsibilities and expectations is key to attracting the right candidate.

Actionable Advice: Include specifics like:

• The tasks they’ll handle (e.g., order fulfillment, social media management).
• Required skills or experience.
• Work schedule and flexibility.

Embrace Compliance From Day One

Hiring employees comes with legal responsibilities, from payroll taxes to labor law compliance. Kira recommended starting with basic documentation, like a clear job description and agreed-upon work hours, rather than jumping straight to lengthy handbooks you might not fully understand.

Pro Tip: Use simple tools or consult affordable HR services to ensure compliance without overcomplicating things. Platforms like Gusto can automate payroll and taxes, reducing stress.

The Importance of Culture Fit

Hiring someone who aligns with your business culture can make all the difference. Kira suggested being upfront about your leadership style and company environment in your job posting and interviews. This helps filter out candidates who may not thrive in your setup.

Example: If you’re hands-on and expect to work closely with your team, communicate this clearly. Candidates who prefer high levels of autonomy might not be the right fit.

Handling Performance Issues

What if your new hire isn’t working out? Kira stressed the importance of documentation. Start with verbal feedback, followed by email confirmations or written warnings if issues persist. This ensures transparency and fairness while protecting your business from wrongful termination claims.

Layoff vs. Firing:

• Layoff: Used when the role or business needs change.
• Firing: For performance-related issues. Requires thorough documentation.

Make Your First Hire Count

As a small business owner, your first hire is often someone you’ll work closely with. Kira’s advice? Follow your intuition. Skills can be taught, but cultural fit and shared values are harder to instill.

Insider Insight: Your job description should not just attract applicants but also repel those who aren’t aligned with your vision. This saves time and ensures better matches.

Building a team for your Etsy shop doesn’t have to be overwhelming. By following these insights from Kira LaForgia, you can hire confidently, stay compliant, and create a supportive environment where both you and your team can thrive.

Next Steps:

• Visit Kira’s website for more HR resources
• Listen to the full podcast episode for additional tips
• Start drafting your first job description and take the leap toward scaling your business!