Natural Entrepreneur: Hiring Your First Employee

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Hiring Your First Employee

Help is on the way, in 5 steps!

-- by Delise West, Human Resource Partners LLC, Dover, NH

You started your business because you have a passion for the work you are doing. Now your business has taken off, your workload is increasing, and suddenly it is difficult to be entrepreneur, bookkeeper, public relations, marketing, sales, administrative assistant, etc. The thought of hiring an employee and delegating work sounds like bliss, but the realization that “you don’t know what you don’t know” about being an employer is terrifying.

Based on my work with start-ups and small businesses I can tell you the fear of “you don’t know what you don’t know” is both common and wise! You started your business because you are an expert at what you do and you have a passion for it, not because you want to be an expert in human resources. Below are 5 steps to help prepare you for hiring employees.

Step 1: Ask yourself the following questions before you hire your first employee.

Refer to the 5 W’s to assess your needs and your “ideal” candidate

Why is now the right time to hire?
Who do you know that has the skills, experience and “fit” for your business?
What qualities/skills would this person possess, and What do you want this person to do for you?
Where can they be most effective so you can focus on what you do best? Where will I physically put them?
When do I need them to start work?

Step 2: Consider the following costs of hiring your first employee.

Employee salary (current minimum wage is $5.15 per hour)
Worker’s compensation insurance
General liability insurance (may not apply to all businesses)
Health benefits (optional)
Payroll processing / payroll taxes (I recommend outsourcing this function)
Supplies – desk, chair, phone, etc.

Step 3: Implement a legally compliant hiring practice through the use of:

Employment application (the applicant signs stating the information provided is true and if misrepresentation is discovered later provides grounds for termination)
Written interview questions (asking the same questions of all interviewees gives an apples to apples comparison and a legally defensible process)
Reference checking process (always ask – “is the candidate eligible for rehire?”)
Written offer of employment (memorializes the offer for future reference)

Step 4: Human beings and therefore employees, have a desire to know what the expectations and the “rules of the road” are. Maximize productivity by communicating expectations through:

Written job descriptions
Employee handbook (this give you, the supervisor, a reference point when handling performance issues)
Performance review system (do annually at a minimum)

Step 5: Some additional items you need to know:

All newly hired employees must be reported to the state of NH within 20 days
Even if you only have one employee you must post all required state and federal workplace posters in a “conspicuous” location
All newly hired employees must complete a form I-9 within 3 days of hire
Paying an employee a “salary” (non-eligible for over time pay) is not dictated by the employer but by the requirements of the Fair Labor Standards Act (FLSA)
There are a number of documents that should not be kept in an employee’s personnel file i.e., health information
Employee/applicant-related documents have certain retention timelines

Thoughtfully contemplating the entire process of hiring employees and understanding these five steps, will not only maximize your new employees’ productivity, but will allow you to grow your business more efficiently which was the point of hiring in the first place!

Delise West is founder of Human Resource Partners LLC, a firm specializing in outsourced human resources services for small business. To contact her send an email to delise@h-rpartners.com, or call her at 603.749.8989. To learn more visit www.h-rpartners.com

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