Before Hiring Your First Employee, Do These 3 Things! 

The biggest question I get when people inquire about my done-for-you hiring service is… “Am I truly ready for a new team member?” And sometimes, the answer is no. 

I’ve actually told some amazing business owners that they weren’t ready to hire yet. Instead, I directed them on what they needed to get together inside their business to prepare it for a team. Once they got those things done, we could start working together! 

Here’s the rub: if you hire before your business is ready, the position probably isn’t going to work out. I don’t care how amazing your new employee is or how amazing you are. If your business isn’t built to help them succeed, they likely won’t be able to! 

So, how can you make sure your business is really ready to bring in another brain? Let’s talk about 3 things your business needs before you should even think about hiring! 

An Established Business Entity

This might seem obvious, but before you hire your first employee, you need to make sure your business is set up the right and legal way. Unlike when working with contractors (who you can hire as an individual), in order to employ someone with a W-2, your business needs what’s called an EIN, or Employer Identification Number. This is pretty much like your business’s social security number! 

Hiring an employee comes with a lot of government rules that often don’t apply when you’re working with freelancers or contractors. For instance, most of us know the minimum wage requirements, sick time, vacation pay, and overtime laws if your employee is hourly. 

However, there are a few other things you’ll have to have ready and in place, including an HR department or person, registration with your state’s labor department, a state unemployment tax account, worker’s compensation insurance, and a payroll system. 

Then, when you do bring your employee on board, you’re going to need to withhold taxes for them. And if taxes make your head feel like it’s going to explode (mine too!), my best suggestion is to hire a payroll company to take care of all the little details, so you can focus on fostering a fantastic relationship with your new employee! Gusto is an entirely online payroll tool that most of my clients use and love.

A Clear Mission, Vision, and Values

This sounds a little more “woo-woo” than the points I shared above — but it’s so important.

Have you ever been asked to define your business’s mission and purpose in a room full of people… and all you could do was draw a complete blank? Yep, me too! 

We start our entrepreneurial journey with a strike of inspiration and the idea of changing the world. But articulating that to another human who doesn’t live in our brain? 

That’s next-level hard! 

However, any new employee you interview and offer a position to is going to ask this question or at least search for it when researching your company. People don’t want to simply work for a company or business. They want to know they’re doing something impactful with their time and energy! In fact, studies show that employees want to work for brands that have an impact and to take on roles with a purpose.

So having a clearly defined mission, vision, and values is really important before you think about bringing someone on the team. 

An effective mission statement has a few key elements: it’s short, clear, long-term, and flexible. Don’t make it too limiting, but do make sure it’s not so broad and general it could apply to any other company. 

A well-crafted and impactful mission statement is the key to attracting amazing candidates who will be on the same page as you when it comes to your everyday impact! 

Clear Job Description

And lastly, don’t try to hire unless you know what you’re hiring for! 

As I say (a lot), a great job description is the key to attracting amazing candidates. But it goes beyond that when you’re considering bringing on your first hire. If you’re anything like me, defining the job description is about defining what you actually need help with! 

Yep, this can sometimes be the most difficult part of the process. Entrepreneurs have a tendency to think — “I’m overwhelmed and need help!” And then put out a job advertisement for a do-it-all VA. 

Unfortunately, that’s not really the way to bring on a new hire who really impacts and levels up your business operations. Not to say you won’t get someone awesome! But they might be an employee who simply does tasks, with a clock-in, clock-out mentality, versus someone looking to innovate. 

Defining what you need out of an employee can be the most difficult task. And for an already overwhelmed entrepreneur, it might feel like the one thing that knocks you over the edge. 

But never fear, Meg Baker is here! And I’m ready to help you clearly define your job listing, role responsibilities, and ideal candidate. Head over here to inquire about working with me to help you with your entire hiring process, A-Z!