How to hire your first employee

Ready to Hire Your First Employee? Here’s Everything You Need to Know

Hiring your first employee is a huge milestone. It means your business is growing, and you’re ready to take things to the next level. But, it’s not as simple as putting up a “Help Wanted” sign and hoping for the best. There’s a lot to consider, from knowing when it’s the right time to hire to navigating legal requirements, writing a killer job ad, and making sure your new hire feels like part of the team from day one. 

1. Know your legal obligations

It won’t surprise you to know that keeping staff on your payroll comes with hand-in-hand with plenty of responsibilities. You can find an outline of these here, but they include things like making sure you’re paying at least the National Minimum Wage, registering as an employer with HMRC, and making sure you complete DBS checks on your new employee if required.

Employers’ Liability Insurance is also a legal requirement, and you can be fined £2,500 per day [1] for every day you’re not properly insured! Your policy must cover you for at least £5 million, though the industry standard is £10 million. This policy will cover you if an employee suffers an accident at work, or if they become ill as a result of their employment, for example. 

2. Think carefully about costs

When considering if you can afford to hire your first employee, don’t make the mistake of thinking you only need to foot the cost of their salary. As our friends over at Crunch have pointed out, there are plenty of hidden costs associated with employment. For example, you’ll also have to pay Employers’ National Insurance Contributions, cover costs associated with equipment and training, and consider the expense of running an RTI-compliant PAYE payroll system. Before you hire, it’s a good idea to have an accountant look over your finances to check you can manage the added costs. 

Pro tip: Hiring a freelancer or contractor is a great short-term alternative, and comes without many of the administrative headaches and overheads!

3. Be clear on the role you’re hiring for

That first hire can be tricky for small business owners, because there might be several areas of the business in which you need help. However, hiring someone for a role that’s too broad and ill-defined won’t do you – or your new hire – any favours. For example, it’s not really fair to hire an admin assistant and also expect them to run your social media calendar. They’ll feel out of their depth, and you’re unlikely to get the results you want. Think about what specific tasks are absolutely critical right now, and will directly impact your business growth. This is the role you should hire for first. 

[1] https://www.gov.uk/employers-liability-insurance

4. Think about how you’re going to hire

When it comes to hiring, you've got several strategic routes to explore. 

• Recruitment agencies offer a professional, hands-off approach and can be particularly useful for specialist roles or when you're short on time, but they come with a higher price tag – typically charging 15-20% of the candidate's first-year salary.

• Job boards like LinkedIn and Indeed, and industry-specific platforms provide a more cost-effective route, with options to post a job listing for free. 

• Turn to your personal network. Ask around at industry events, or make a post on LinkedIn. 

The best approach is typically a hybrid strategy: go to your network first, use targeted job board advertising, and consider an agency for hard-to-fill or specialist positions.

5. Nail down your job description 

A clear, detailed, and accurate job description is key to attracting the right candidates. Start by defining:

• The role's responsibilities

• The skills and qualifications required

• The experience level you're looking for 

• Be specific about day-to-day tasks and the outcomes you expect from the role. Include details about the salary range, benefits, working hours, and location (or whether the role is remote or hybrid).

Having a clear job description will help you avoid wasting time interviewing candidates who aren’t a good fit and ensure you attract those who are excited about and qualified for the role.

6. Write a great job ad

A great job ad isn’t just a list of demands — it’s your chance to sell the role and your business. Make it clear, make it human, and maybe even sprinkle in a little personality.
Here’s what to include:

1. Who you are: A quick intro to your business.
2. What the job is: One or two sentences on why the role exists and why it’s exciting.
3. What they’ll do: The main tasks (keep it clear and realistic.)
4. What you need: The must-haves (skills, experience) without turning it into a wish list!
5. The good stuff: Salary, benefits, perks - be honest and upfront!
6. How to apply: Step-by-step.

Write like you’re talking to a real person — because you are. If your ad feels warm, inviting, and easy to understand, you’ll attract people who actually want to work with you. What’s better than that?

7. Setup a simple – but effective – interview process

Interviews don’t need to be complicated to work well. Prepare a mix of questions about their skills, experience, and how they’d handle real situations they might face in the role. Be sure to ask every candidate the same core questions, as this makes it easier to compare their answers later and keeps things fair. If the job requires specific abilities, include a short practical task. For example, ask an admin candidate to create a basic spreadsheet or a designer to critique a logo.

Be sure to ask whether your candidates need any extra accommodations, too. For example, they might need wheelchair access, extra time for a practical task, or adjustments to support a hearing or visual impairment.

8. Nail the onboarding

Your new hire’s first days are your chance to make them feel welcome and set them up for success. Show them the ropes, introduce them to the team (even if it’s just you and your dog), and make sure they have the tools and training they need. Regular check-ins during their first weeks can help smooth out any bumps and show them you’re invested in their success.