Business Blog

Hiring Your First Employee!7 min read

Are you at the stage where your business has grown so much that you just can’t take on any more without help or perhaps, you’re more than capable of doing what’s necessary to run your business but you’d like someone to help with certain areas so that you may focus your attention on other areas or maybe, you just feel that someone else may be better qualified to undertake certain tasks? If so, it may be time to consider hiring your first employee!

But, when you’re new to the process, hiring your first employee can be an incredibly daunting task. After all, there are so many things that you have to do to ensure that you have employed someone legally with all the proper procedures and documentation, who is able to meet your needs and the demands of the job role you’re offering.

Well, to help reduce that mountain into a molehill, Matilda from Loates HR, gave a wonderful talk outlining the proper employment procedure and what should be taken into consideration throughout that process.

Firstly, you should consider why you’re employing someone. This is an important part of the process because it will determine the exact path you take in terms of the type of person you employ and the exact requirements of that employment. For example, you may think “I need someone to do my accounts for me”. If you’re someone who doesn’t have a huge budget, then you may choose to employ an accountants’ services on an ad hoc basis as this would be far cheaper than hiring a full-time employee as an accountant. This may also be a better option for you if time is a factor in your decision-making process as the paperwork involved in taking someone on full-time can be quite considerable. So make sure you take the time to fully explore your needs and requirements before you embark on this process as it is essential in attaining the right person or people for the job.

Secondly, you must what they will be doing when they are in your employment. This is so that when you consider someone for the job, you know that they will be capable of doing the job we have hired them for. It’s also important that you compare what you will be requiring them to do with our own needs, so that you can find the best match for your business. So taking the example from above, if you’re on a budget you could consider hiring someone that could be trained up to undertake the tasks you require if you have the time to do it, as it may enable you to hire someone on a lower wage than someone who is more qualified as this may suit your budget better.

*Note* This list of tasks that you will be requiring your employee to undertake, can also be useful later on once you have your employee. You can use it to identify key performance indicators when setting clear expectations between you and your employee. If they don’t meet those expectations, you can clearly demonstrate what expectation isn’t being met, which will aid discussions into why it isn’t being met and if anything can be done to help your employee meet those expectations.

There are three methods of finding that perfect employee and all of them have their pros and cons. You must consider each one and it’s benefits and limitations and decide which is best for you.

Free Advertising – It’s low cost and typically gets lots of applications but you will have to go through those applications yourself, which could take you a lot of time and the quality of the application is not guaranteed.

Recruitment Agency – This option will save you a lot of time and effort and you are guaranteed higher quality applications but recruitment agencies are more costly.

Word of Mouth – This is when you hire someone you know. The benefit of this method is that you get someone you can trust. However, this is a less formal method of hiring an employee and as such it is more likely that issues may occur and if they do, the relationship may break down and the damage done could be irrevocable.

It is important to know your legal obligations as an employer. You must make sure sure that you have all the necessary legal documentation, that all rules are met and all regulations are in place before undertaking the process of hiring your employee. If You are unsure about any of this please do seek the advice of a professional like Matilda.

When you have all of this in place, it is recommended that you adopt the following process in order to officially hire your employee:

  1. Make an offer in writing.
  2. Issue a contract/agreement in writing.
  3. Make the offer conditional on elements.
  4. Get proof of their right to work.
  5. Get their qualifications.
  6. Get their references.

Phew! That was a lot of information to take in but knowledge is power, so get stuck in and take that first, all-important step in becoming an employer. We hope we’ve helped to break the process down a little bit but if you still need a bit more help, don’t worry there are plenty of places you can look to for more advice. We’ve listed a few of our favourites below to get you started.

If you enjoyed this month’s topic, remember to keep an eye out for our next blog post. We write about our guest speaker’s topic of choice after each networking event, so there’s always something new to learn!

BUT there’s no better way to learn about each topic, than hearing about it from the guest speakers themselves. All of our guest speakers are industry experts so they really do know a thing or two about their chosen topics so don’t miss out! Make sure you book a ticket for our next event today!

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The GOV.UK website offers a wealth of documentation on a wide variety of things a business person ought to know. In this case, we have provided you with a link to their A to Z of Employing people. Here you will find all you need to broaden your horizons in the world of the employer.

Loates HR

No business blog post would be complete without a shoutout to our lovely speaker. This month’s speaker was Matilda from Loates HR. They are a highly experienced 5-star rated team of friendly and down-to-earth CIPD-qualified HR consultants. They provide outsourced HR support, HR consultancy, and employment law advice for small to medium-sized businesses in Derby, Nottingham, and the surrounding East Midlands area.

Find out more.

The D2N2 Growth Hub

The D2N2 Growth Hub is a vital network for growing and ambitious businesses across Derby, Derbyshire, Nottingham and Nottinghamshire. With their team of expert advisors, they offer a wide variety of services including guidance and support. They can even aid you in securing the funding you need to help you on your way to becoming an employer.

Find out more.