How to Hire Your First Employee: An Employer's Checklist

As your business grows, there will likely come a time when you are hiring employees. If you have never had to do this before, you probably don’t know where to start or how to ensure you comply with the UK employment law. There are various elements to consider, including right to work, pay, health and safety and pensions. Following a structured process will ensure you are compliant with employment law and reduce risk.

When you're ready to hire a new employee, there are several important steps to complete before, during and after the recruitment process.

Signs You Need to Recruit

If you're unsure whether it's the right time to recruit, there are several indicators that your business may benefit from hiring employees. 

Unable to Meet Customer Demands

If you are turning work away because you don’t have the capacity to do the work, it is a sign that you should be hiring your first employee. Businesses should never be in a position that they are turning work away, otherwise they are unable to grow and prosper.

Negative Feedback

A sudden increase in negative feedback and unhappy customers suggests you are not giving them the time and effort they deserve. This is often due to capacity issues and it could signal the need for hiring your first employee.

Missing Deadlines

If you are constantly missing deadlines due to being over capacity, it is a strong sign that you need to consider hiring your first employee.

Can you Afford an Employee?

The need for an employee, doesn’t automatically mean you can afford one. You need to consider the costs of recruiting employees, including the salary, sick pay, pension, maternity and paternity leave. If you are considering hiring an employee, you should have cash reserves so that even if workload reduces, you are still able to pay your employee and comply with the UK employment law.

Managing Risks

You must also ensure the working environment is safe for employees. A risk assessment should be arranged for hiring your first employee, including fire safety and ensuring the building is accessible to employees who may have a disability or health condition.

Register as an Employer

You will need to register as an employer on the GOV website and set up some kind of payroll system. You are also required to check what pension responsibilities you have as an employer when hiring employees as part of the UK employment law. You can also do this via the GOV website. Employer liability insurance will also be required when hiring your first employee.

At Inspired CVs, we provide HR advice on any issues as well as one to one consultations and a professional CV writing service. To find out more, contact us or visit our shop.