Hiring your first employee is a defining moment in your small business’s story. Although this big step could help you to accelerate growth and improve profitability, it also comes with some risks. Finding the right person will help you reach your business goals, but the wrong hire could sap your momentum, strain your resources or even cause financial losses.
Ilana Bouwer
There is a lot to think about, especially if you don’t have a background in human resources. In addition to the financial and compliance aspects of becoming an employer, you’ll need to think about how your first hire will help you advance your business plan. Let’s run through some of the basics:
Define what you’re looking for from your first hire
As a small business owner, you’re probably running on a tight budget. Think carefully about which tasks and priorities you would want an employee to handle for you, be it income-generating work, handling internal tasks to free up your time for sales and billable work, or a mixture of the two.
For example, if you’re running a software development firm, would you benefit from someone to help with sales or someone to share the client workload? Do some market research to find out how much you’d need to pay such an employee and check whether you can afford to pay a market-related salary. If the pay is too low, you may struggle to find someone capable or retain them long-term.
Write the job description
Your next step is to write a job description, where you detail the personal qualities and qualifications you are looking for in an employee as well as the responsibilities of the role. This job description will form the basis for your job advertisements as well as the contract you eventually sign with your new employee.
When you get around to writing your job ad, make sure it’s specific about what the role involves and the skills you’re looking for. You’ll also want to showcase the benefits of joining your business to attract high-quality candidates. Jobseekers respond better to ads that sound human and authentic, so write your ad the way you’d speak to a potential team member.
Start the search
Once you know what you’re looking for, it’s time to start identifying candidates. Many small businesses find it effective to harness an online recruitment platform like Pnet. Online recruitment platforms allow you to search their CV database of millions of candidates to find potential recruits or advertise your vacancy to their users. Many also offer powerful filtering tools to save hours of scouring through CVs, and some platforms even offer response handling services to take care of the admin of advertising and shortlisting candidates for your jobs. Finally, a good platform will make it easy to communicate with unsuccessful candidates to protect your employer reputation.
Assess skills, potential and fit
Once you have a shortlist of candidates to interview, you can assess what each of them brings to the party in terms of skills and experience. The interview process is your chance to get real insight into their strengths, weaknesses, ambitions and fit with your business.
Get the admin in order
Before you choose and hire someone, there is a lot of paperwork and admin to think about. Speak to your accounting firm about the ins and outs of setting up an employee with SARS and taking care of payroll deductions. It’s also a good idea to familiarise yourself with the Basic Conditions of Employment Act (BCEA) and to get legal advice about employment contracts.
Make onboarding count
Hiring the right person is just the beginning. A good onboarding process ensures your new recruit understands their role and feels like part of the business from day one. Introduce them to key department managers, customers and suppliers, walk them through your systems and workspace, and give them a clear picture of how things get done. A smooth start helps them contribute sooner and builds long-term commitment.
What to look for in a first hire
One of the tricky aspects of hiring for a smaller business is that an experienced corporate employee isn’t always the best fit for an SME. Small business owners will often be looking for someone who can wear several hats, is skilled at multitasking and feels comfortable working in a less structured, fast-changing environment.
Here are some qualities that can make someone stand out:
- Adaptability: An ideal employee is someone who can shift between tasks and priorities as the business evolves.
- Cultural fit: In a business with two employees, it’s important that they get along. You should choose someone who fits your values and shares your vision, but who can also offer fresh perspectives on the business.
- Willingness to take on multiple roles: From strategy discussions to day-to-day operations, early hires must be comfortable operating across different levels.
- Entrepreneurial mindset: Resilience, problem-solving and ownership are critical when the load isn’t shared across a big team.
- Balance affordability with long-term value: Consider the return on skills and commitment from your first employee. Do you want someone who can grow with the business or someone who can be productive from day one?
Building the foundation for growth
The first employee will set the tone for your company’s culture and future team dynamics. By taking a thoughtful approach to your first hire, you can build a strong foundation for the growth of your business. Whether you plan to build a big team or stay lean, the right decision could deliver big returns for your business in the years to come.
