Top 10 Tips for Taking on Your First Employee

1. Evaluate the Costs of Hiring vs. Not Hiring

Before deciding to hire, assess the costs and benefits of bringing on an employee versus managing the workload yourself. Consider if your business can afford the new hire, whether their value will outweigh their costs, and what impact not hiring might have on your operations. Creating a People Plan—a strategy outlining how employees will help achieve your business goals—can provide clarity. Be specific about what you expect from your new hire and how their role will contribute to your business. Consulting with your accountant, business mentor, or HR partner can also offer valuable insights.

2. Craft a Compelling Job Advert

Finding the right person starts with a strong job advert. Do your research to ensure your job description attracts the best candidates. Look into suitable job titles, competitive salaries, desired benefits, and the best platforms to advertise on. Highlight what makes your company and the role attractive. A well-crafted advert should include a catchy headline, a summary of why the role is great, details about your company, and clear information about the responsibilities, skills required, and pay package. Ensure your advert complies with employment laws and does not discriminate against protected characteristics.

3. Shortlist and Interview Candidates Effectively

Once applications start to come in, create a structured process for reviewing CVs. Set clear criteria to evaluate each candidate, focusing on skills, experience, and cultural fit, and avoid unconscious bias. Design a multi-step interview process suited to the role and the number of applicants, such as initial phone screenings followed by in-person interviews. Keep track of each candidate’s progress with notes so you can make informed decisions about who stands out. Remember the candidate can request to see your notes.

4. Offer the Position and Communicate Clearly

Once you’ve selected the right candidate, offer them the position verbally, discussing the salary, notice period, and start date. Follow up with a formal offer letter detailing these terms. Communicate promptly and professionally with unsuccessful candidates, providing feedback where possible. This maintains a positive reputation for your business and leaves the door open for future opportunities.

5. Complete Essential Pre-Employment Checks

Before your new hire starts, you must meet several legal requirements. These include paying at least the National Minimum Wage, verifying the candidate’s right to work in the UK, obtaining a DBS check if necessary, securing employers’ liability insurance, registering as an employer with HMRC, and enrolling employees in a workplace pension scheme if applicable. Meeting these obligations ensures compliance and protects your business.

6. Prepare Key HR Documents

You are required to provide your new employee with a written statement of employment particulars outlining the main conditions of employment, which must be issued on their first day. This statement consists of two parts: the principal statement and a wider written statement that includes details on pensions, training, and disciplinary procedures. Creating a company handbook at this stage is also advisable. This should contain your policies on issues like discrimination, employee rights, and company expectations. These documents not only inform your employees but also legally protect you.

7. Plan a Smooth Onboarding Process

The onboarding process is key to integrating your new hire into the team. Prepare a detailed plan for their first week, including training, introductions, and shadowing opportunities. Set up their workspace, provide necessary equipment and access, and introduce them to colleagues. Clear communication during onboarding helps your new employee feel welcomed and supported, setting a positive tone for their future with your company.

8. Set Up Payroll and Benefits Administration

Once you’ve hired your employee, you’ll need to set up payroll to ensure they are paid correctly and on time. You’ll also need to manage benefits like holiday entitlement and pension contributions. Whether you handle this yourself or outsource to a payroll provider, ensuring that payments and benefits are managed smoothly is essential for maintaining employee trust and satisfaction.

9. Establish Clear Performance Expectations

To help your new hire succeed, set clear performance expectations from the outset. Regular check-ins, feedback sessions, and clear communication about their role will help them understand what’s expected and how they can contribute to your business goals. Performance management isn’t just about addressing issues—it’s also about recognising achievements and providing support to help your employee(s) thrive.

10. Keep Compliance and Training Up to Date

Employment laws and best practices can change frequently, so it’s important to stay updated on legal requirements and provide ongoing training as needed. This includes staying compliant with health and safety regulations, offering professional development opportunities, and maintaining records of training and certifications. Regularly review and update your HR policies to reflect changes in legislation or company procedures.

By following these ten tips, you can confidently hire your first employee, knowing that you’ve covered all the bases—from legal compliance to setting your new team member up for success. If the process feels overwhelming, remember that HR consultants like us are here to help guide you every step of the way. Happy hiring!