Hiring Your 1st Employee

Are you ready to hire your first employee?  Here are a few items to consider before you hire:

 

What do you need?  Think carefully about the tasks that will be assigned to the new employee. Many new business owners are tempted to hire friends or family members, and fail to consider to true needs of the business.   The result is often a traumatic experience for both owner and employee, and a painful termination.   Make sure that you have a clearly defined job description and then seek out a person with the correct skill set. 

 

What type of employee? Will the new hire be an Employee or Contractor?  Employees & Contractors carry different responsibilities and liability for the business owner.  Misclassification can result in fines and confusion over the role the person will play in your business. Consult a professional prior to the hire to make sure you have your new person in the correct category. 

 

Are you ready?  Before you hire, be ready for your new employee by setting up a relationship with a payroll company and have new hire paperwork in place (such as W-4 & I-9 forms).  Put together a written Offer Letter outlining the position title, hours, start date, pay and any additional requirements so that both the employee & owner clearly understand position details.   

 

Jill Critchfield is a professional Human Resources Consultant.  Through her business, Pacific HR, she has provided HR services to over 100 small and mid-sized businesses in Portland, Oregon since 1999.  Information about Pacific HR services can be found at www.pacifichr.com.

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