A Guide on Hiring The Very First Employee

They say go big, or go home. You know that if you want to win big, then you have to grow. An employee would possibly help the growth of your startup, even though you know there is a salary overheads that you need to take note of. Not to mention a whole new set of challenges: recruiting, interviewing, and more.

To help you deal with that, these are everything you need to know whether you’re ready to hire your very first employee:

1. Financials

When you’re determining whether or not you can afford a new employee, you need to examine your budget and look beyond just the basic salary of a new hire. Make sure your business is ready for the cost of recruiting, hiring, training a new staff member, and others.


2. Legal

If you are hiring your first employee, you must file the appropriate documents and pay taxes to various government agencies. There’s a lot of things to do, such as register to your state’s labour department, get worker’s compensation insurance, create an employee handbook, set up personnel files and employee benefits. You may need help from the nearest legal people, too.


3. Recruiting

Startup founders initially turn to their friends and former colleagues when looking to hire their first employee. But take note, even though you may have great chemistry with those you know well, that doesn’t mean these people actually have the skills and experience necessary to take your business to the next level.

When recruiting potential employees, “trusting your gut” isn’t enough. Statistics reveal that almost 40 percent of all resumes and job applications are false or, at the very least, excessive information. When you’re recruiting outside your circle of trusted friends and former colleagues, do appropriate background checks to make sure everything you’re being told is accurate.

These are the step-by-step guide to recruiting:

  1. Determine rate of pay. Calculate how much you can afford to pay, and remember to take a look at the minimum wage rates.
  2. Write a job description, based on what type of employee you want to hire.
  3. Shortlist the candidates, unless there are not too many applicants (you could jump to the next step).
  4. Interview candidates. Get to know your future colleague. You should be able to find out if he/she fits well in the work environment.
  5. Check their references diligently. Normally, you would need to ask for and actually call at least three references: two professional and one personal. Ask professional references questions that specifically relate to the candidate’s ability to perform the tasks for the job. Personal references should be asked about how long they have known the candidate and their opinions of the person’s character and work ethics.
  6. Select a candidate, and offer them the job. You have to create a proper job offer letter. Also, provide a written statement of employment.


Now, you’re ready to go! Since you have now figured out on how to hire for the first time, when will you be hiring your very first employee?


Read also: No More Hiring Dilemma for Startup Founders


Article contributed by Startup Jobs Asia‘s Team.

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