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5 Things to Consider When Hiring Your First Employee

Posted on by Murray & Lamb

When Should I Hire My First Employee?

A monumental step to take when your business is expanding is hiring your first employee. Whether you’re worked off your feet, or are encountering tasks which require more knowledgeable input, at some point in all businesses it’s time to add to your solo enterprise. Hiring an employee should be a well thought through decision as it is one that comes with regulations and responsibilities. However, to grow your business and improve productivity this is a necessary, if somewhat nerve-wracking, step. Here are some helpful pointers to consider before getting a new person on board.




One of the first and foremost things to think about when considering adding staff to your business is the cost.
Many people will account for the cost of paying a new hire’s salary but don’t think about the additional expenses. These can include employer’s insurance, pension contributions and providing staff benefits.

Take a good look at your financial projections to ensure you can afford to take on an employee long-term. If you think you will fall short over the next year, consider taking on a temporary worker or hiring an as-and-when freelancer instead.

Employee checklist

The Role

To make the most from your investment in a new starter, think long and hard about what will benefit your company most. Consider what tasks are currently most time consuming or are areas that really need improving.

For example, if you spend considerable amounts of time pouring over finances, invoices and bills, an accountant or business manager could really help you free up time. Alternatively, if you’re poor at communicating with or retaining customers, a customer service manager could enhance customer satisfaction and your bottom line.

Job Applicant

The Applicants

Taking the time to find the right person for the job is a worthwhile pursuit. However, if you’ve never hired or interviewed someone before, it can be hard to know what to look for.

Chances are, firstly, you’ll be able to screen out candidates who aren’t qualified for the role. Next, you can streamline candidates based on their applications; look for relevant industry and startup experience and applicable skills.

At the interview stage, try and gauge whether the prospective candidate is someone whose personality, ethos and passion will align with yours. This is important as you will be spending a lot of time with this person and the two of you will be drivers of the company’s future success.


Training and Trial Runs

Make sure you are willing to invest the necessary time and effort to train up your new employee. Even a well-qualified candidate with relevant experience will not be able to start off and use your preferred methods without help and guidance.

Another idea to consider with your new employee is to start off with a trial or probationary period before entering a permanent employment contract. This will give you the chance to see whether the arrangement works for you both, that the work is what was expected and of a good standard and that you have a good working relationship. If all goes well, a permanent contract can be offered at the end of this period and if not, you can part ways.



Along with the benefits of becoming an employer, there are responsibilities too. Before you officially employ someone, make sure that you:

  • Check your candidate has the right to work in the UK
  • Have employer’s liability insurance
  • Create an employment contract for your employee including the terms and conditions for the role
  • Inform HMRC and register as an employer
  • Check if you are required to enrol your employee into a pension scheme

Murray & Lamb are the North East’s leading chartered accountants and business advisors. For advice or support with your business planning, bookkeeping, payroll or other financial services, look no further. Our experienced professionals can help ensure you stay financially secure, organised and operationally efficient. To find out how we can help your business, get in touch with our knowledgeable team today.

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