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Last Updated on March 14, 2025
When you first embarked on your entrepreneurial journey, you likely managed everything independently. At the time,
Hiring your first employee can be nerve-wracking, and things can easily go wrong without the right approach. Many employers make the mistake of hiring employees without proper
What This Article Covers
- Preparing Your Finances for
Hiring : Learn how to assess your financial readiness,budget for wages, and account for additional costs like equipment, office space, and employee benefits. - Identifying the Right Candidate: Discover how to determine the
skills , personality traits, and work ethic needed to build a strong and productiveteam . - Navigating the Legal Side of
Hiring : Understand the importance of employment contracts, labor laws compliance, and a fair and legally sound workplace. - Building a Strong Workplace Culture: Explore strategies for fostering a positive work environment, balancing professionalism with approachability, and encouraging
collaboration . - Maximizing Employee Growth and
Productivity : Learn how to train and develop employees, expand their roles over time, and create pathways for career advancement within your business. - Keeping Your
Hiring Investment Profitable: Learn how to ensure your employee adds long-term value, improves efficiency, and contributes to business growth.
How Ready Are Your Finances?
Although it might feel like you’re ready, you need to consider how ready your finances will be. It’s not just the cost of paying their wages that you need to think about, it’s everything that comes with it. You need to think about any additional needs they have, the equipment you’ll have to buy for them to use, and even a uniform if you want to go down that route. You must ensure adequate office space, which sometimes involves moving somewhere more significant and expensive. You’d then need to think about what you would do while they’re off on holiday or off sick.
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You need to think about many things your finances need to be ready for. In terms of the wage you will offer them, you need to consider how you will pay that from month to month. Because now two lots of wages will be coming out of that business bank account, you’d need to make sure you can pay both you and them, even in those months when profit will dip.
So have a good analysis, and see how much you could afford to lose before not being able to pay one of you the wage. You would have to lose out yourself, you couldn’t contract an employee to a wage, and then apologise and offer them less one month because things are a little slow!
What Type Of Person Are You Looking For?
This is such an essential factor because the type of person you hire will significantly affect the type of business you run. Considering it will likely only be you and the one person you hire, you need to consider the personality traits you want for now. Do you want someone who will be hyper-focused on their work and always look for ways to improve the company? Or would you prefer someone so relaxed and willing to do the job you tell them to do without getting involved in anything else? If you’d like our opinion, you need the perfect mix of both.
“Managing a
team can be hard and the more people that you are in charge of, the more difficult it can be. Staying in control of a large number of people and making sure that they are getting all of their work done on time is something which you get better at over time. You should, however, always make sure that yourteam respects you and that they know that you are there to lead rather than just be their friend. There are plenty of ways that you can help yourself to manage a greatteam so keep reading to find out more!” – How to Manage A Great Team
You need someone who will bring that fun vibe to the company and be so relaxed that if you hire someone else, they’ll make you feel at ease. You don’t want to start your company with someone who will be overpowering. Another significant piece of advice is to hire someone so desperate to show an employer what they can do. Disability employment services are something you might want to look into because some people are just desperate to show their worth in the working world but are being shot down left, right, and center simply because they have a minor disability. But most importantly, make sure that this person gels well with you!
The Legal Side Of Things
The legal side of things is what you need to ensure you’re getting right because if there’s one thing that will land you in really hot waters, it’s an annoyed employee who feels like you’re doing them wrong. So first of all, make sure that you contact an employment solicitor so they can help you write up a significant contract. Ensuring your employees sign a contract before they enter your company is essential; it gives you something to fall back on!
You then need to ensure that you’re keeping things formal and always keeping your employees’ best interests at heart. You don’t want to become so friendly with them that it can be deemed creepy, but you don’t want to be so overbearing with them that it feels like bullying. As long as you’re paying the right, treating them right, and giving them all opportunities to progress, you should never find yourself in legal trouble with your employees.
Keeping It A Fruitful Investment
Finally, you need to ensure that this person is growing with your company, and keeping it a fruitful investment is quickly done by
Next Steps
- Assess Your Financial Readiness: Review your
budget to ensure you can afford wages, benefits, and additional costs like office space, equipment, andtraining . - Define Your Ideal Candidate: Identify the key
skills , personality traits, and work ethic that align with your business goals and work culture. - Prepare a Legally Sound Contract: Consult an employment solicitor to draft a contract outlining job responsibilities,
salary , and legal protections for both you and the employee. - Develop a
Training and Onboarding Plan: Set up a structured onboarding process that helps new hires integrate quickly and understand their role within the company. - Track Employee Growth and Performance: Monitor progress, provide regular feedback, and offer opportunities for skill development to ensure long-term success and business growth.
Final Words
Hiring your first employee is a significant milestone that requires careful planning, financial readiness, and a clear strategy. By taking proactive steps to define your
Joey Trebif is the pen name of Mark Fiebert, a former finance executive who hired and managed dozens of professionals during his 30-plus-year career. He now shares expert job search, resume, and career advice on CareerAlley.com.
