Hiring Your First Employee: 5 Things You Need to Know

If everything goes right, sooner or later you will need to hire someone to help with your startup. Hiring the wrong person may only add troubles, while finding the right one may take your company to the new level.

Here is how to hire the right first employee:

1. Make sure you’re financially ready.

A new employee is not just a fixed salary to add to your company’s budget. Don’t forget about employment taxes, recruiting expenses, training and sometimes even rental space. Just make sure your company can absorb these expenses.

2. Be smart about recruiting.

If you decide to hire a new employee from your friends or former colleagues circle (which seems quite popular and logical), remember that they may not have the right skills and experience to make your company more successful. At the same time, if you want to hire someone you don’t know, make sure you have checked that their background matches the one they mentioned in the job resume or CV.

3. Write a clear job description.

This will not only help with legal protection, but will also help you understand what exactly you are looking for. The right job description should mention both the duties of the position and the personal characteristics.

4. Identify what type of employee you want to hire.

There are several questions about classification you have to answer to yourself before the interviews: Will it be a full-time or part-time employee? An independent contractor,a common-law employee, a statutory employee or a statutory non-employee? The best advice here is to study the federal laws, as sometimes an improper classification may lead to fines.

5. Check references diligently.

You need to ask for and actually contact at least 3 references before making a formal job offer. Two of them should be professional (you should ask questions related to the candidate’s ability to perform tasks) and one should be personal (ask how long they’ve known each other and what the reference thinks about the candidate’s character and work ethic).

Read full article on AOL Small Business

By Julia L. Rogers

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