Ready to Hire Your First Employee?

As a small business owner, deciding the right time to bring on an employee can be difficult. Consider these tips before you make your first hire. You’re used to taking on all the tasks and keeping all the balls rolling. However, as your business grows, you need more help! Choosing your first hire is a big deal. You’ll invest time and money into this person, and they’ll likely be a pivotal part of your business for years to come. A small business hiring employees is an exciting milestone but can also be daunting as you get started.

5 Things to Know Before Hiring Employees for Your Small Business

As you assess your ongoing tasks, if you find that you have at least 20 hours of extra work, it’s likely time for you to hire your first employee. So, what should you consider when hiring your first employee? Below we walk through the steps that you should take as you get started.

1. Know Where You Need Help Most

   No one knows your business as well as you do. You know what’s required to keep things moving and what’s required to expand and reach your goals. As the business owner you’ll need to think about which areas require your attention and identify areas that could be passed off to a trained employee to manage.

2. Plan for Expenses

   Employees come with business expenses beyond wages. As an employer, you’ll need to plan for employee benefits, employment tax, payroll taxes and consider additional insurance coverages like workers compensation insurance.   

3. Organize Your Business Records & Systems

   Hiring help will require up front effort on your part. You’ll need to think about how you want to structure your employment records and systems. While starting with one employee seems simple, you’ll be thankful for your organization when you have 20 employees! There are automated systems to help manage payroll and business finances, however, there may be a cost associated.

4. Invest in Your Employees

   As a first-time manager, it’s in your best interest to consider employee perks like competitive pay, paid time off, parental leave and retirement savings. While there is a cost to you for these benefits, they can greatly impact employee retention. Some processes don’t require any expenses, but should be given special attention, including a thorough onboarding process and job aids.

5. Find Professional Support

   Taking the next step and hiring an employee is a big step forward and not something you have to do alone. There are professionals available to help small businesses from human resources support to a financial advisor.

We Can Help You Grow Your Business

Your favorite applicant accepted your offer — great news! As your business expands, protect it with employee benefits and workers compensation coverage. Connect with your Farm Bureau agent to learn more.