Hiring Your First Employee: A Step-by-Step Guide for Business Owners

28 Aug 2025

Bringing on your first team member is a big milestone, and it can feel both exciting and daunting. Whether you’re growing faster than expected or simply ready to delegate, hiring is a sign your business is evolving. But before you post that job advert, there are a few key steps to take to make sure you’re set up for success.

Here’s a simple guide to help you navigate the process.

Step 1: Be Clear on Why You’re Hiring

Start by asking yourself: What do I need help with?
Is it admin support, customer service, or a specialist skill you don’t have? Define the role clearly so you know exactly what you’re looking for, and so your future employee knows what’s expected.

Tip: Write a short job summary outlining tasks, responsibilities, and the skills needed. This will help shape your job description later.

Step 2: Understand Your Legal Responsibilities

Hiring someone means stepping into the world of employment law. You’ll need to:

  • Register as an employer with HMRC
  • Set up payroll and issue payslips
  • Provide a written employment contract
  • Ensure you’re paying at least the National Minimum Wage
  • Check the employee’s right to work in the UK
  • Set up a workplace pension

Tip: If this feels overwhelming, consider working with an HR consultant or accountant to get everything in place.

Step 3: Create a Job Description and Advert

A clear job description helps attract the right candidates. Include:

  • Job title and purpose
  • Key duties and responsibilities
  • Required skills and experience
  • Working hours, location, and salary

Then write a job advert that’s engaging and honest. Be clear about what makes your business a great place to work.

Step 4: Plan Your Recruitment Process

Decide how you’ll advertise the role; online job boards, social media, or local networks?
Think about how you’ll shortlist candidates and what your interview process will look like.

Tip: Prepare a few structured interview questions that relate directly to the role. This helps you compare candidates fairly.

Step 5: Make the Offer and Handle the Paperwork

Once you’ve found the right person, make a formal job offer in writing. Include:

  • Start date
  • Salary and benefits
  • Working hours
  • Any conditions (e.g. references or probation period)

You’ll also need to issue a contract of employment by the employee’s start date.

Step 6: Prepare for Their First Day

Think about onboarding. What does your new hire need to know on day one?

  • Where to go and when to arrive
  • Who they’ll be working with
  • What training or equipment they’ll need

A warm welcome and a clear plan can make all the difference in helping them settle in.

Step 7: Keep Communication Open

Hiring is just the beginning. Regular check-ins, feedback, and support will help your new employee thrive and help your business grow.

Need Help with Your First Hire?

If you’re unsure where to start or want to make sure everything’s done right, we’re here to help. From contracts to onboarding, we can guide you through the process so you can focus on growing your business.

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