Hiring your first employee is a major milestone for any small business owner. It signifies that your company is growing and requires additional support. However, this expansion also introduces a new set of responsibilities and may evoke feelings of excitement mixed with anxiety about relinquishing some control. To help make the transition smooth, here are structured tips from finding candidates to their onboarding.

1. Understand Legal Obligations 

Before you place a job ad, it's crucial to have a solid understanding of the legal framework surrounding employment.

• Educate Yourself on Regulations: Begin by familiarizing yourself with federal, state, and local regulations concerning employment. The Small Business Administration offers comprehensive guides on setting up payroll, understanding labor laws, and exploring employee benefit options, ensuring you start off legally compliant.
• Insurance Responsibilities: Comprehending your new insurance obligations is critical before making that first hire. Essential coverages such as general liability and workers' compensation are crucial for businesses with employees. Understanding these requirements ahead of time helps you avoid potential legal issues down the road.

2. Attract Top Talent

With the legalities in check, your next focus should be on attracting the right talent, which can be challenging in today's competitive job market:

• Creative Recruitment Strategies: As a small business, you likely can't compete with corporate salaries and perks. So get creative with recruiting your first employee! Instead of relying solely on job boards, leverage your community by hosting a networking event to promote your opportunity and employer brand. Use social media strategically by sharing employee testimonials and behind-the-scenes glimpses into your company culture. Get referrals from existing connections. With some ingenuity, you can attract quality candidates excited about your mission.
• Thorough Vetting Process: After attracting candidates, ensure you understand who you are potentially hiring. Conducting thorough background checks is essential. Utilize services recommended by platforms like Betterteam to obtain criminal history, employment verification, and more, ensuring transparency into a candidate’s background.

3. Consider Background Checks

There is no such thing as being too careful when it comes to bringing someone into the fold of your business. And while the interview process can reveal a lot about a potential hire, it’s in your best interest to go a step further.

Background checks have been around for years and are becoming even more popular. Betterteam outlines what a reputable background check could include, how much they cost and recommended providers.

4. Streamline the Onboarding Process

Once you've selected the right candidate, ensuring they can integrate into your team smoothly is next:

• Establish Clear Processes: Set up a strong onboarding program before your new employee’s first day. As noted by Entrepreneur magazine, "When you expand and take new employees into your team, you want them to get on board as fast as possible. If your internal processes are simple and easily understandable, that will happen faster."
• Clarify Roles and Expectations: It’s essential to clearly delineate responsibilities, performance evaluation criteria, and how duties will be delegated during this transition. Establishing a well-defined foundation from the start allows your new hire to quickly ramp up and contribute effectively.

Growth for your small business is a process and one that can be time-consuming. Your employees can become one of the best assets for your company and further growth, so taking your time and doing it right is of the utmost importance.

Need Small Business Insurance?

Need help with small business insurance? WorkCompOne was built by and for small business owners, so you can stay compliant for less time, money and hassle than traditional insurance agencies. 

Editor's note: This post was originally published in 2018, and has been updated for accuracy and comprehensiveness.