Why Understanding the Difference between Hire Date and Start Date Matters

The hire date is normally the date a new hire first completes new hire paperwork. The start date is when an employee begins working at a company.

It may seem like a small thing, but understanding the difference between start date and hire date is important because of their impact on the employment contract, eligibility for benefits, payroll, and labor law compliance.

Hire Date

The hire date is normally the date when an employee first completes his or her new hire paperwork. In most companies today, this process begins online before someone comes to the office for an official “first day.” New hire paperwork includes the usual culprits: Form W-4, Form I-9, state forms, and other payroll withholding forms. Some businesses may include unique paperwork that pertains strictly to them. 

At other companies, sometimes the hire date and start date can be the same day if the company has its employees fill out crucial documents in person.

An employee cannot be added to payroll until this is all completed, and if an employee cannot get paid for their work, that person cannot truly “start” a new job.

Start Date

The start date, in its simplest form, is whenever someone starts working and performing duties for the company. This is the first day an employee can be paid. However, to be paid, employees must fill out the appropriate paperwork as aforementioned.

An employee’s start date is also the important date for beginning their benefits or at least beginning the countdown to when they are eligible for benefits. For example, at some corporations, employees receive paid time off after 30 days of work. To know when you should offer this as an employer, you must know the start date.

Likewise, health insurance and other benefits are generally offered after a certain amount of time passes. An employee’s probationary period, if any, will also be tied to their start date rather than their hire date.

Example of the Difference Between Hire Date and Start Date

Joe interviews for a new job. After two weeks, the company offers him a job. They send him his onboarding paperwork online via the business’s human resources portal, and he completes it that day. That is his hire date.

The following week, on Monday, Joe begins training in the office. That is his start date. The business links its benefits to this day.

While it may be open to some interpretation, the hire date of an employee and the start date are separate entities.

How to Choose a Start Date

It’s great you’ve found a new hire! You and your new hire should be excited for them to get going. But you may want to consider a few things when choosing their start date.

Your New Hire’s Preferences

Your new hire will often have a start date in mind. They may want to give a specific amount of notice to their current employer, something you will certainly want to accommodate if it’s reasonable. They may want to take the opportunity to take a vacation between jobs. They may need time to move to the area and find housing. They may not have graduated from college yet, and it may make sense to postpone the start date until after graduation. For a variety of reasons, a new hire may not want to start immediately. Some of these reasons may be immovable, but some may not be.

Your Company’s Needs

It’s good to be flexible with your new hire’s start date when possible to get the relationship off on the right foot. But sometimes, a company is looking at hard realities. For example, a department may have lost a key player, and the hiring manager needs to fill the role as soon as possible in order to meet the product launch deadline.

On the other hand, there may be reasons the hiring company wants to push the start date slightly. For example, maybe the person in charge of onboarding is on an extended business trip or vacation. Maybe there are many new hires starting soon, and you want to put them all through training at the same time in order to use time and senior personnel efficiently.

Clarity About the Start Date

Whatever the start date, you as the employer should discuss it with the new hire and also relay it in writing. If there is substantial time between job offer and start date, the employer will want to stay in touch with the new hire by email to be sure nothing has changed and the employee can still start on the day agreed.

Sometimes things come up such as the new hire falling ill or suffering the death of a close relative. And sometimes, a new hire accepts another job and doesn’t bother to let the first company know. This may happen even at the highest levels. It’s always advisable to start a new relationship with good communication.

Tracking is Critical

Hire date and start date are both important, but the start date is mostly the one that heavily influences payroll, benefits, contract issues, and the application of employment law. Employers and employees should be sure to accurately track these dates to increase the likelihood of a smooth hiring process and employment relationship that minimizes recruitment costs.