Hiring your first ever employee is an exciting threshold to cross. It means that after countless hours spent building your business, you are finally ready to start delegating certain tasks to someone else. However, this step forward brings complications and costs in its wake.
If you want to ensure that hiring an employee is worth the hassle and the investment, consider these things before you hand over that employee contract.
#1: Your Company’s Mission Statement
What your company stands for is second nature to you. However, any new employee that you bring onto the team didn’t build the company from the ground up. Crafting a mission statement is a great way to ensure that you and your employee are on the same page.
Employees who understand their boss’s expectations perform better. Mission statements reduce the risk of misunderstandings. When an employee understands what’s expected of them, there is less room for excuses.
#2: Your Desired Workplace Culture
Once you’ve decided on your mission statement, you’ll want to give some thought to the culture you’d like to create at the workplace.
Is constant communication very important? Or do you prefer an employee who takes initiative and doesn’t need your input on every little thing?
Do you want an environment that encourages creative problem solving, or one that sticks to tradition?
These are important things to decide before you hire a candidate. You’ll need to communicate to anyone you hire what you’re looking for in terms of workplace culture.
#3: Your Budget
Before bringing someone onto your payroll, you’ll need to take a look at your budget. Perhaps you’ve seen a steady rise in profits, so you’re able to justify paying someone to assist you. After all, more manpower often translates to more productivity in the long run.
If you haven’t yet reached a place where you’re making a profit, you’ll need to consider costs more carefully. How much will you be able to pay this employee? Will you provide paid time off or bonuses? Consider these questions and how the answers will affect your bottom line.
#4: Employee Rights Laws
You’ll need to familiarize yourself with employee rights before hiring someone. Some employee rights laws are federal while others vary state by state. For example, some states require employers to allow their employees paid time off to vote on election day.
Other laws protecting employees are federal, such as The American Disabilities Act (ADA). The law protects disabled employees from discrimination. If you’re hiring an employee with any sort of disability, you’ll want to be familiar with their rights as well as your own as an employer.
You should prepare for any specific needs your employee might have ahead of time. If your employee needs a handicap access ramp, you should install it ahead of time. If your employee requests bringing an animal companion into the office for mental or physical health reasons, you should encourage them to register it as an emotional support animal if they have not already.
Anticipating and accommodating your employees’ needs ahead of time will help you both in the long run.
#5: Insurance
You’ll want to get Employer’s Liability Insurance before hiring an employee. It will protect you from financial loss if your employee suffers from a workplace injury that isn’t covered by workers’ compensation or if your employee sues you.
It’s important to consider worst case scenarios and take steps to protect yourself. You’ll also want to consider how employers’ insurance factors into your budget before you hire someone.
Conclusion
Bringing on your first employee is a milestone you should be proud of. With a little preparation and forward thinking, the process should run smoothly. You’ll find yourself wondering how you ever made do on your own.
