How to Hire Your First Employee?
Entrepreneurs wear multiple hats by necessity. They know everything about their business and although it may be tiring; they enjoy doing different kinds of activities. But as they increase their client base and start seeing some results, it becomes important to hire employees to delegate some tasks.
As any serial entrepreneur will tell you, hiring people is one of the hardest tasks a business owner faces. If you hire the wrong one, they will cost you a lot of money and effort. According to a survey by Start-up Magazine, the first ten employees you hire will determine the culture of your company and its success. Be it a retail store or a high-tech start-up, the right employees will make a huge difference to your business.
Since you may not have any idea of how to go about recruitment, we have brought you a few ideas that can help in hiring your first employee. These suggestions come from serial entrepreneurs, top HR professionals and others who have been in your shoes many times before.
1. Do not go with your instincts
On average, 40% of all resumes have bogus details. Some people are naturally good at charming the interviewers while others may get some training. Apart from competence, there is also a need to make sure your potential employee is stable, reliable and does not have a criminal background that may affect your company’s reputation. So irrespective of how smart they are, do not make instinct based hiring judgements without some form of a background check.
Once you hire them, you are liable for their actions. So go slow.
2. Test for competence
Answering questions is not necessarily a great skill in a potential employee unless you are hiring them for PR or customer service jobs. So test their competence by giving them a real-world problem to solve. If you are hiring a coder, give them a skill test, and if you are searching for a salesman, ask them to sell to a customer and demonstrate their skills. As a sole entrepreneur, you will not have a lot of time to train your employee. So finding someone who has at least a basic level of competence in the job is an absolute requirement and best way to do it is to test their skill.
3. Discuss expectations openly
If you need an expert for the job, be ready to pay for an expert. Be open with the potential candidates on the requirements of the job and what you can offer to pay them. The deal has to satisfy both parties. You can’t afford to overpay an employee and he can’t afford to accept to be paid in peanuts.
4. Be aware of your statutory obligations
Each state has its own sets of labour laws apart from the Federal laws. It is your job to comply with all of them while announcing a job opening, interviewing and hiring candidates. Failure to comply may result in an expensive lawsuit. So take some time to read about the requirements before you even consider hiring your first employee.