Business & Finance Small Business

Hiring Your First Employee - What Every Small Business Owner Needs To Know

Hiring your first employee means a time of change for your business.
Make sure you know the processes involved.
In the early stages of your business you have to juggle.
You're the sales person, the admin person, the head of business development, the bookkeeper and customer service and complaints handler.
You deal with suppliers and the stock control, and make the tea! But as the business builds eventually there comes a point at which you just can't go on doing it all yourself.
By admitting that you need the help of another person you've taken the first step to rectifying the situation.
You need to think through carefully the type of person you need, the skills they should have, the role they will play in the business and the knock-on effect on your own role.
You also need to acquaint yourself with the rules and regulations surrounding employees and how your business will comply with them.
Identify exactly what you need your new employee to do.
Whether it's administration, sales, marketing or some other aspect of the business, work out where help is needed most.
Perhaps it's an area you don't specialise in or that's being neglected.
Having a clear picture of the employee's job will help you when you're recruiting.
Writing a job description from that picture will help you convey to potential applicants what skills and attributes you need from them.
Consider whether you're ready for a full-time employee.
If you don't need someone full-time just yet, you could offer a part-time post.
If you only need help for a certain period of time you could make a short-term contract position available or get in agency staff (although this can become more costly, especially with the agency fees added in).
There are various ways of finding the right person.
Agencies and recruitment companies can help.
You can go it alone and post an ad in the local press, job centre or places like libraries and community centres.
Ask for personal recommendations from friends and family.
Think about contacting local colleges where students will be training in the skills you need.
All of these methods have benefits and pitfalls.
Posting an ad online, for example, can reach a large audience but you may be inundated by applications from unsuitable candidates.
Posting a print ad can be costly depending on the publication and will only reach the people who read that particular paper or magazine.
On the upside, a local ad can reach local people who know your market.
Go through CVs and application forms and pick some candidates who stand out as being suitable based on your written job description.
Meeting them is vital to understanding whether they will suit the role and, just as crucially, whether you want to work with them.
Decide before you meet them the questions you need to ask to fully understand whether they are right or not.
Personality and character traits can be just as influential, but don't let them rule your overall decision on the person.
They might be a great person but not right for the job.
It's usually better not to appoint anyone rather than appoint the wrong person.
You must be very careful not to discriminate against any potential candidate on the grounds of race, gender, sexual orientation, disability, age, or religion or religious belief.
That warning applies to the ads you put in publications and on websites, as well as to application forms and interview questions.
It's very easy to discriminate without meaning to.
By asking for someone who has English as their first language, for example, when that isn't really essential for the job, you're discriminating against people who don't have English as their first language and may be well qualified.
This might be an area of recruitment you want to take some advice on.
Once you have someone you want to offer employment to, decide on the terms and conditions of the appointment.
Getting it all in writing within a legally binding contract is vital so that both parties know where they stand.
This should include simple things such as hours of work, job description, pay and benefits they will receive, as well as more complex issues such as confidentiality clauses.
As an employer you also need to comply with all the government regulations including health and safety, holiday and sick pay, flexible working rights, and maternity and paternity leave.
Once you've appointed your first employee, don't neglect them.
Treat them well, get them involved in the business and its development and listen to their ideas.
Helping employees develop through good training is a worthwhile investment.
Happy employees who feel valued will be loyal and your business will reap the benefits.
Taking on your first employee doesn't have to make you go weak at the knees.
Good, clear planning will help you identify any advice you need and ease the process.
Once you've made that first leap you'll have made huge strides towards growing your business.
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