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Hiring your first full-time employee can be exciting but a bit scary at the same time. Mainly because it means you are responsible for another person. It’s also very technical and requires some understanding of employment rules and regulations. So here are some things to consider.

How It Will Affect Cash Flow

First and foremost, hiring someone full-time is expensive. So don’t do it if you think it will cost too much. Go over your expenses and see if you can actually fit someone in. If your income is staggered as the nature of your business, also consider which pay period to use. For example, weekly or bi-weekly pay periods will be more expensive than monthly because wages are processed less frequently. Unless, of course, you handle all the bookkeeping yourself. 

Learn Employment Laws

As an employer, there are many responsibilities you have. And these are covered under your country’s employment laws. Typically these cover unfair dismissal, how much and how often they are paid (including overtime), and their leave entitlements. You must explain all of these in detail to your new employee and make sure they understand them. Failure to comply with employment laws can cause headaches down the line and potentially cost a lot of money.

Hiring Your First Full-Time Employee Needs Contracts

Further to understanding and explaining employment law, you next need to have your new employee sign a contract that states they accept your statement. It helps to avoid any misunderstandings by clearly stating a contract in writing. The contract must be handed to and signed by employees within 2 months in most countries. It should also detail any expected work hours, what their duties are, and the reasons for disciplinary actions, such as intoxication.

Take Your Time when Recruiting

It can be tempting to find someone as quickly as possible for a role. However, this could be a disaster if not handled correctly. This is because it can take around one year’s salary for a role throughout the recruitment process. And this is money you may not be able to afford to spend multiple times. So take your time finding the right person. They must be qualified and certified, depending on the role. But they must also be easy to get along with, dependable and reliable. 

Be Clear About What You Expect

Any employee knows that you expect them to do their job well. But there are also other factors that you can reasonably expect too. For example, an employee is expected to keep time well, be absent only if necessary, and understand how to conduct themselves. You can provide an employee handbook for these. You can also set these out in a contract or have your contract refer to the employee handbook. Specialized HR services can also help you with these.

Summary

You are doing well when you are considering hiring your first full-time employee. But consider how it will affect funds, pay attention to contracts, and take your time to find the right person.