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The Ultimate Guide to Hiring Your First Employee
Hiring your first employee is a huge milestone for you and your business! It’s such an exciting time, but it’s likely a little scary for you too.
Expanding your team for the first time is a big responsibility and can raise a lot of questions, and it’s understandable that you might be nervous about getting it wrong.
That’s why we’ve created this guide – it will talk you through everything you need to know so that you can hire with confidence and attract the best person for the job.
Step 1: Create a People Plan
Deciding to hire someone for the first time is a big decision and you’ve probably been thinking about the benefits, disadvantages, and costs involved for a while now.
Can the business afford to pay someone else? Will their value pay for their costs? Can I do all of the work myself? Will I be stuck if I don’t hire someone? Is my business ready for a new team member?
Only you can make this decision, but you should do it with the help of your accountant, business mentor and of course, HR.
HR isn’t just about the legal stuff, dishing out grievances and firing people. HR consultants focus on all things people and culture related to help you grow your business and create a working environment where everybody can perform to their best.
A key way to do this is by creating a People Plan. This outlines how your people will help you to achieve your business goals and acts like a guidebook for how to handle all things people related - from hiring to firing and everything in between. It's important to have a plan that's tailored to your business, taking into consideration things like your company's size, culture, and goals, so that it’s specifically designed to fit your unique needs.
Before you hire your first employee, it’s so important to have a People Plan in place and be really clear with what goals your business is trying to achieve and exactly how this new hire is going to help you get there.
You should even go as far as writing down exactly what your new hire will be doing for you and how that specific action is going to help the overall business. For instance, do you want to free up more of your time so you can do XYZ, or keep clients happy so that they stay with you for longer?
By getting clear on this information, you can hire with confidence, knowing exactly how and when you’ll see a return from your investment.
Step 2: Find the right person for the job
Job adverts are crucial to finding the right person for the job. Here’s a few steps to consider so that you can ensure you’re setting your business – and your new hire – up for success.
1. Do your research
Not only do you want to attract the best person for the job, but you want the recruitment process to be as smooth as possible. Doing your research and getting everything right from the get go will ensure a seamless start for your new hire.
Think about the job title and what keywords candidates might be using in their job search. Using these keywords in your job description can help ensure that your posting appears in relevant search results.
Next, think about wage and benefits. Research what other employers are offering for similar positions to ensure that your salary and benefits package are fair, competitive and attractive to potential candidates.
Finally, consider where your ideal candidate is likely to be searching for a new job. Posting on popular job sites such as Indeed or LinkedIn can help ensure that your job advert is seen by the right people.
It’s also important to think about your employee branding and what it is that makes your company and the job opportunity stand out from others.
If you have already created a people plan, you likely have a detailed list of the tasks and responsibilities that your new hire will be responsible for. Make sure to include this information in your job description so that candidates have a clear understanding of what the job entails. Being transparent about expectations can help ensure that candidates who apply are a good fit for the role and can hit the ground running from day one.
2. Create your job advert
Once you have done all your research, you can then create a job advert that will attract the best candidates. To make sure your job advert has everything it needs to stand out and appeal to the right people, don’t forget to include:
An attention-grabbing headline and opening statement
A bullet point summary of why people would want to work for your business in that role
A descriptive paragraph about the company, what your plans are and how this role / person is going to help you make a difference
A summary of what skills and experience is required
A clear summary of responsibilities
Wage
Details of any other package and benefits
Information on how to apply
3. Look at it from a HR perspective
Although you may have a good idea of what type of person you want for the job, it’s really important that your job advert doesn’t discriminate against any protected characteristics.
Step 3: Shortlisting and interviewing candidates
Once you’re job advert is live and you have a whole bunch of applications for the role, it’s time to make a decision. The next step is to shortlist the candidates and invite those who best fit the job requirements and your business for an interview. Here’s a few bits of advice to keep in mind.
1. Reviewing applications
Wading through hundreds of CVs can be a daunting task and although it’s great to have so much choice, it can be easy to start being inconsistent and disregard people who may actually be a good fit.
To avoid this from happening, before you start reviewing applications make sure to create a criteria you can cross reference and be clear on the skills and experience you’re looking for. This is a crucial aspect of the process and it’s important to make sure you’re not discriminating against anybody during this stage.
2. Plan your interview process
You also need to think about how you can get to know your candidates more, beyond their CV.
This will depend on the job and how many people have applied but it may make sense for candidates to complete a short screening call. From there, you can then decide to progress to a longer call or in person meeting.
3. Decide how you’re going to record and track candidates
Even if you have an amazing memory, after speaking to lots of people it can be difficult to remember specifics about individuals.
That’s why it’s important to decide how you’re going to keep notes on each candidate so it’s clear who stands out, matches your criteria and where in the interview process they are currently at.
There’s plenty of systems to help you record and track this data and depending on your preferences, you can use project management software like Basecamp or Trello or HR specific software like Breathe.
Step 4: Selecting the perfect candidate for the job
You’ve found the right person for the job and you’re really excited to get them started… but what do you have to do before they can get stuck in?
The first thing you should do is jump on the phone with the successful candidate to share the good news, offer them the position and make sure they’re still interested. If they are, then now’s the time to talk through the package, notice period and verbally agree on a starting date. All of which should be confirmed, along with anything else you need, in writing and sent to them as soon as possible after the call.
Once you have sent this letter, the job isn’t over. You then should let the other candidates know that they haven’t been successful, with some feedback if you can. It’s the least you can do after they have showed their interest and invested their time and energy in applying.
Step 5: Make sure your paperwork is in order
Before your new employee starts their job with you, there are some legal tasks you need to complete to comply with government rules:
Decide how much to pay someone - you must pay your employee at least the National Minimum Wage.
Check if someone has the legal right to work in the UK. You may have to do other employment checks as well.
Check if you need to apply for a DBS check (formerly known as a CRB check) if you work in a field that requires one, e.g. with vulnerable people or security.
Get employment insurance - you need employers’ liability insurance as soon as you become an employer.
Tell HM Revenue and Customs (HMRC) by registering as an employer - you can do this up to 4 weeks before you pay your new staff.
Check if you need to automatically enrol your staff into a workplace pension scheme.
Alongside this there are a few HR documents you need to prepare to finalise the hiring process and make your new hire an official member of the team.
1. Written statement of employment particulars
An employer must give employees and workers a document stating the main conditions of employment when they start work. This is known as a ‘written statement of employment particulars’ and is not the same as an employment contract.
A written statement of employment particulars is made up of two documents.
Document one: The main document, also known as principal statement
The employer must provide the principal statement on the first day of employment which must include at least:
Your company name (the employer)
Your new recruit’s name (the employee), job title or a description of work and start date
How much and how often they will get paid
Hours and days of work and if and how they may vary (also if employees or workers will have to work on Sundays, during the ‘night period’ or take overtime)
Holiday entitlement, and if that includes public holidays.
Where they will be working and whether they might have to relocate
If they will work in different places, where these will be and what the address is
How long a job is expected to last (and what the end date is if it’s a fixed-term contract)
How long any probation period is and what its conditions are
Any other benefits (for example, childcare vouchers and lunch)
Obligatory training, and whether or not this is paid for by the employer
Document two: The wider written statement
Employers must also give employees and workers a wider written statement within 2 months of the start of employment. This must include information about:
pensions and pension schemes
collective agreements
any other right to non-compulsory training provided by the employer disciplinary and grievance procedures
3. Company Handbook
Although not legally required, it's also wise to create a company handbook at this stage. This should contain all your policies on things such as discrimination, inclusion, mobile phone and internet use, as well as your expectations of your employee, what they can expect from you, your legal obligations, and their rights.
These documents are so important because it gives your new hire clear direction and purpose, as well as protecting you as an employer should anything go wrong. This is something People Pillar can help you with to ensure your culture is embodied accurately, so please get in touch if you have any questions.
Step 6: Set your new team member up for success
The day you have been waiting for is finally here! It’s your new recruit’s first day of work.
This step is crucial to ensure they get off to the best start and aren’t thrown straight in the deep end with no support.
Give them everything they need to do their job. Provide uniform. Show them around. Explain where they eat. Set up their desk. Have a computer ready, complete with their own login and e-mail account. Do whatever it takes to give your new team member the tools they need to succeed.
Then make sure you have a clear plan for their first week. This is where you can show them how everything works, train them where needed and shadow you while you demonstrate their duties.
Make sure you cover everything they might need to know during their onboarding process, and always make time to address any concerns and answer their questions.
The first week sets the tone and a good start is a promising sign for a bright future!
Don’t forget, we’re here to help!
If you’re ready to take the next step with your business and take on your first employee – congratulations! People Pillar provide all things people related and can make sure you find the right person for the job and set them up for success.
Click here to set up a 15-minute exploratory call to talk more about we can support your business.
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