If you’re a small business owner, you probably know that hiring your first employee is a big step. After all, you’re responsible for another person’s livelihood, and that’s not a responsibility to take lightly. But don’t worry – with a little planning and forethought, it’s easy to hire your first employee with confidence.
Read on for five tips you can use when hiring your first employee in your small business.
1. Hire the Right Candidate
While enlisting a recruitment agency can be the best and easiest way to find the perfect fit for the job, sometimes your budget may not allow it.
Below are some pointers you can use if you choose to do it yourself.
- Define The Role You’re Looking To Fill
What skills and experience should your ideal candidate have? What tasks will they be responsible for? Besides helping you do what’s best for your business, answering these questions will help you write a more effective job posting and identify the right candidates during the interview process.
- Check References
- Furthermore, if you need to hire someone with a specific skill set and experience which can be challenging to find locally, it’s best to expand your search globally by hiring an independent contractor.
Once you’ve identified a few promising candidates, be sure to check their references and do a background check if possible. This will give you a better sense of their work ethic and qualifications before you invite them for an interview.
Interviews are an important part of the hiring process. After understanding what you need from an employee, you will want to schedule an interview with several candidates that you shortlisted. The process doesn’t always have to be so formal, but the right interview questions should be designed to help you figure out which candidate best suits the role.
- Trust Your Gut
In the end, you’ll need to choose the candidate you think is the best fit for your business. Trust your instincts and go with your gut feeling when making a decision.
2. Know Your Legal Obligations as an Employer
To protect both your business and your employee(s), it is important to know your legal obligations as an employer. And depending on the size of your business, you may be required to provide certain types of employee benefits, from health insurance to social security, workers’ comp, and paid time off.
You will also need to comply with certain employment laws, such as those regarding minimum wage and anti-discrimination. By staying up-to-date on your legal obligations, you can ensure that your business is running smoothly and your employees are happy and healthy.
3. Know Your Payroll Obligations — e.g. Issuing Pay Stubs
As a small business, you will be required to meet certain payroll obligations once you become an employer. These may include withholding taxes from your employees’ paychecks, as well as paying your own taxes on your business income.
You also need to make sure that you are paying your employees correctly. This includes paying them the correct wage for their hours worked, as well as any overtime that they may be entitled to. One easy way to calculate your employee’s earnings and tax deductions accurately would be to use salary pay stubs, which can be auto-calculated in seconds if you have the right tools for the job.
4. Be Prepared To Onboard and Train Your New Employee
A new employee often needs training or induction into the business at the very least to help them better understand their new roles and responsibilities. This means making sure you have all of the right tools, equipment, and enough time to allow a smooth training and onboarding experience for your first recruit. Proper preparation, however, is key.
5. Have Realistic Expectations
One thing to note is that your first employee is probably not going to be perfect. Unless they’re really experienced, they might make mistakes from time to time.
Just like it is for you when growing your small business, your new employee may also need some time to learn and grow into their position. So, don’t be too harsh on them, especially for the first few weeks or months of employment.
If your small business is hiring, it’s a good thing. It means you’re growing! The above few tips can help you make an informed decision when making your first hire and thereafter.