Many entrepreneurs eventually reach the point where their client list and workload necessitate another person. You might have hired a freelancer or outsourced in the past, but you may need to hire an employee.

If you’ve reached this point, then congratulations. You’ve reached a milestone in your business and it can only grow more from here. However, hiring an employee isn’t just as simple as finding another person and asking them to help. Here are some tips about what to do when hiring your first employee.

1. Before You Hire

Before tackling anything else, you need to ensure that you’re on the right side of the law. If you fail to research employment law, then you could make a costly mistake. Register as an employer with the HMRC and ensure that your business has the correct insurance.

As well as making sure that your business is ready to hire employees, you should also familiarise yourself with the correct way to treat your staff. You simply can’t afford to make a mistake in this regard, as the first major mistake may well be your last.

You should also decide on the intended job role for your potential employee. If you have a specific role in mind, then you can better determine what kind of wage would be appropriate and what kind of employee would be best.

Some jobs are better handled by freelancers, especially if the task is only temporary. You may also want to hire someone for an administrative or support role, to free up your time and allow you to focus on your clients. Or, you may want to continue handling the administrative duties of your business and hire someone in your industry to help with your clients or customers.

2. Finding the Right Employee

Once you have defined your required position, as well as determined an appropriate wage, you need to find the perfect employee for that role. You should figure out what you want from an applicant, such as what qualifications and experience they will need.

Before you can even consider an applicant, you should make sure that they have the right to work and that they pass any further requirements or tests, especially if they will be working with children or other vulnerable people.

Some people already have a potential employee in mind, while others advertise the position on job boards and interview applicants. Regardless of your preferred method of finding the right employee, remember that their qualifications aren’t the only things that matter.

Someone can have the right qualifications and seem perfect on paper, but if they don’t work well with you or other people, then they might not be a good fit for your business. An applicant may also be dishonest or have a poor work ethic.

If they have prior employment experience, then look for a good reference. However, you will also be taking a measure of risk when hiring an employee. Provide a statement of employment, including a contract, so you both know your obligations.

3. Retaining Employees

Once you have hired an employee, the next step is to keep them on your team. Following the legal requirements of an employer will help you in this regard, as these requirements are designed to provide a safe working environment, which everyone appreciates.

But there’s more to it than merely doing the bare minimum to stay on the right side of the law. Your own experiences in the workplace likely inform you that employees are always looking for opportunities to progress, both within the company and outside of it. This is by no means a bad thing, as long as you can harness it.

Small businesses are a risk for employers and employees alike, as they have the chance to stall or fizzle out, but they also have the potential to grow into something bigger. With this in mind, loyal employees are a boon that can make or break your business’s prospects. If you want loyalty, then you will have to offer a measure of loyalty in return.

Give your employees room to grow and develop within your company. The employee life cycle is a perfect guideline for retaining employees. It starts before they even start work, which is when you should make sure that they feel welcome.

From there, be sure to provide training to help your employee to feel at home and to feel comfortable in their new role. There might be a teething period while they settle in, but give them time. Then, continue providing them with opportunities to train and improve themselves. This improves their prospects and their potential within your company.