Hiring Your First Employee as a Startup - 4 Things to Think About

Hiring Your First Employee as a Startup - 4 Things to Think About

If your company is a startup looking to get serious, the first thing on your to-do list would probably be hiring an employee. This is the stage where you are your own human resource department and your own payroll system, so it is important to exercise prudence when making decisions such as this. Hiring your first employee can be a tough call. At this early stage of your business, many questions will come to mind: Who should I hire? How much should I pay? What should I be concerned about?

The answer to these questions lies in this one simple mantra: Hire only if the cost of hiring this employee is compensated by any combination of lowered expense, increased revenue or lowered workload.

Consider the following when recruiting your first employee:

Count your Money
The cost of hiring an employee doesn’t just lie in his/her salary. In many situations, other things can have an impact on your finances. There may be employment taxes involved or a worker’s compensation fee. Your employment package may include holiday time which also counts as an additional cost. Should they need to work overtime, it will come at your expense as well.

Since there is a fair amount of financial commitment involved, you should keep a record of your finances and estimate whether or not you will be able to afford these costs, plus the monthly salary. If you don’t think you will be able to sustain the employment of this new hire, go with a freelancer or engage a contract agency.

Evaluate your Needs
Once the money question is answered, the next thing to ponder is who to hire. There are multiple ways to address this problem:

  • Identify which parts of your business requires the most help and focus your efforts on hiring someone that can address those concerns. For instance, if you are very mobile due to your daily duties and there is no one around to handle client engagement, you should hire a secretary/receptionist.
  • Consider your budget and recruit someone that can have a positive impact on your business’s bottom line.
  • Go for someone that compliments your skills, someone who is the “yin" to your "yang”. If you have great marketing ideas, get a graphic designer to help you make them a reality.

Get Someone with Startup Experience
Some might say, there is nothing more attractive than the name of a big multi-national company on a resume. That may or may not be true. As a startup, look for people who have come from similar working backgrounds. These people will generally be more flexible and willing to take on responsibilities in different areas without hesitation. People who are more accustomed to working in a hierarchical organization can be more job-oriented and structural.

Ask Around
You can ask your friends, your relatives or former colleagues to recommend people for your business. This will help you save on advertising or recruitment costs while increasing the chances of finding someone reliable. A candidate with a recommendation from someone you know is more likely to be a good hire.

Now that you know when to hire an employee, follow these simple guidelines to recruit someone that brings the best out of your company.

If your company is looking for a reliable and trusted HR solution, contact HReasily for a non-obligatory discussion on how we can help.