A Guide to Hiring Your First Employee

There’s something special about that moment when you’re ready to hire your first employee. That means that the business has become something more than your personal endeavor. It has become sustainable enough to need and be able to support someone else. From that point on the company is going to be only as good as the employees you choose are.

Choosing the right person shouldn’t be taken lightly. You need to think about what the person will bring to the job and how will they fit into the culture and the purpose of your company.

First things first: the cost

This may not be the most inspiring way to think about the issue, but it’s expensive to hire a new person. First, there’s the obvious thing: you’ll have to come up with a paycheck regardless of how well the company is doing (which is not that certain for startups). But, there are other considerations to think about. Besides the paycheck, you’re obligated to pay for medical insurance, unemployment insurance, and a lot of different taxes (local and nationwide). Inquire about all of these beforehand because they add to the bottom line substantially.

Have a clear job description

With small companies, it’s customary for everyone to pick up the slack and basically do everything when there’s need for it. This is fine when only the founders are employed, but when you hire a new worker -make sure everyone involved knows what their job description and role in the company is. That will help you go through the application faster and find someone with the suitable skill set. In the same time, it should leave space for professional growth. No one wants to be stuck doing the same thing and the company might change.

Using the services of a professional

Assessing people and conducting interviews requires a completely different skillset than running a business. Sometimes it’s best to outsource recruitment services to experienced professionals. The key is to describe in detail what you expect from an employee and they will do the hard job of determining which person fits the profile you’ve created. Also, look into hiring a graduate student, this is more cost effective and provides a young person with an opportunity to jumpstart their career.

Corporate culture

As soon as there’s a new person on board you start to create your own corporate culture. This is a much-overused term, but there’s no better way to describe the unwritten rules that make your company a unique place that it is. Have this in mind when you’re welcoming people on board, it’s perfectly fine for someone to be a well trained and dedicated person and not fit in the way your company operates. This isn’t an exact science and trial periods might help you figure out what works and what doesn’t.

The importance of references

This is the age-old question when it comes to hiring. Do you want someone with experience (meaning someone that costs more and has higher expectations) or someone who will learn on the job and whose salary might more flexible? Previous experience is obviously important and can mean a lot but, with those who are starting from the ground up there’s the added benefit of a stronger sense of loyalty. Also, there’s a question of what kind of references are you looking for. Sometimes a previous experience in a company that has nothing do with your field can mean a lot because it’s a testament to hard work and the trust the person has earned there.

Hiring your very first employee is an important task. It sets the tone for the future of the company and expands the possibility of the business significantly. Approach this task with seriousness and open mind and the company will benefit.