Hiring your first employee is a huge milestone for any small business owner as it represents growth and momentum. And while you may be eager to get everything signed so employee #1 can get started, there’s a few things to take into consideration to help prevent any pitfalls.
Determine Responsibilities of the Job
It’s understandable that employees working for small businesses may be required to wear multiple hats. Once you’ve identified the tasks and responsibilities involved in the role, ensure that candidates are aware of the all-hands-on-deck mentality that they may have to adopt when coming on board. Of course, this doesn’t mean someone hired to head marketing is going to step in as interim accountant but helping out with some administrative tasks every now and then may be required.
Employment Contract
The contract is perhaps the most important thing that employers have to pay attention to. We’ve all heard horror stories, or been involved in one, that stemmed from something that wasn’t outlined in writing before it was too late. While it may be tedious, it’s crucial that factors including but not limited to compensation, PTO, terms of notice, employee rights and termination clause, are not only addressed, but reviewed thoroughly by employer and employee.
Manage Expectations and Performance
No one wants to be micromanaged. It causes friction, disrupts productivity and often results in an employee leaving…sometimes abruptly. By setting performance expectations, it provides employees with a guideline, independence and sense that you trust them to do the job because, after all, you wouldn’t have hired them if you thought they couldn’t. Weekly or biweekly check-ins are a good way of relaying the status of a project and provides both parties with an opportunity to vocalize any concerns or needs as well as exchange feedback both positive and negative. An open line of communication will help to satisfy everyone involved so that you can work in harmony to grow your business in the way you intended to.
Friends and Family
Hiring friends or family is a situation to be handled delicately. It can help grow business, you’re already familiar with who you’re hiring and more often than not you like each other. However, if things end up not working out, it can get a little awkward which is why no matter how well you know the person you’re hiring, complete the onboarding process as you would with any new employee. Not only will it keep things professional throughout your working relationship together, but in the unfortunate event that the employment doesn’t work out, both parties are protected.
Keep in mind that hiring a new employee, let alone your first one, is something to celebrated. Many business owners will go on to nurture successful relationships with employees, sometimes even bringing them on as a partner. Developing a thorough onboarding process is a way to protect yourself, the employee, and your business. So, dot your “’I’s”, cross your “T’s” and congratulate yourself on an amazing next step in your journey as a small business owner.
