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5 Most Important Things to Know When Hiring Your First Employee

5 Most Important Things to Know When Hiring Your First Employee

For most business owners, the realization eventually hits that there’s just too much for one person to do. Often, this happens after an entrepreneur has put in a series of 18-hour workdays, only to find him or herself still well behind on their to-do list. And even tho many automation apps on the market can help a business owner get more efficient, one thing stays a constant - there is always more to do, the work ends when he falls down tired at the end of the day, or when priority strikes to start doing something else, not when work is done. Work is never done. 

That said, automation software is the first natural step of the small business owner on his long journey to scale up.

What Types of Automation Apps Help Small Business Owner?

Among the most common apps helping business owner deal with stress and load of work so-called productivity apps, management tools, administration tools. Some are free, some are paid. The best of these apps simply make work easier, by combining functions in a single place to ensure individuals (and later teams) can work more efficiently, instead of having to use multiple different platforms.

To the most common apps definitely belong:

  1. 1Microsoft 365

  2. Asana

  3. Accounting automation software ZarMoney (check out its awesome features!)
  4. Bitrix24

  5. TeamViewer

  6. Trello

  7. Pocket

  8. LastPass

  9. Buffer

  10. Join.Me

  11. Metactrl Sync

Like the list? Read much more about best free and paid productivity apps in this detailed guide by Techradar.com.

When App Won't Suffice

Apps can increase productivity only so much. Once you are done with being as productive as possible as a single person, you are going to need more. A second natural step in scaling up is to hire help.

But, before you go rushing out to post an ad on a job board and get the new employee you need, there are a few things you should keep in mind:

#1: It’s a Big Decision 

When you factor in the costs of recruiting a new employee, training them, and paying their salary and benefits (or even just hourly wages) while they get up-to-speed, it’s easy for things to run into the tens of thousands of dollars. Or more. It is estimated that the total cost of getting an employee up the speed of the experienced worker is approximately 2 years of salary. Not that it would take 2 years to get a person profitable, but that there are other expenses aside of salary that needs to be paid, and most importantly it is your time you spent on nurturing your next field expert that often costs the most. 

Plus, you’ll be hoping that your first employee will grow into the kind of leader who can help your business grow and supervise other employees in the future. Recognize that you’re making a very big decision and invest the time and attention necessary to make it a good one. 

#2: Always do Your Homework 

Estimates vary, but it’s widely accepted that somewhere between half and two-thirds of all candidates lie on their resumes. Some are even hiding felony convictions and other serious issues in their past. While checking references, enlisting background screening companies, and doing your own web research may all seem like a waste of time when you have found the perfect candidate, taking these steps can prevent you from making a terrible mistake. The wrong employee can cost a lot of money, turn away customers, and even steal money from your business.

As anyone ever trying to hire a freelancer will tell you, nothing works as well as a practical test. By simply assigning a simple practical test to an applicant that applicant is supposed to do on their own terms will shoo away in most cases half to two-thirds of potential employees. In worse cases it can cause your applicant list to shrink by 90%, making your next step, the second round of interviews that much easier. Working attitude is quite an important aspect of every employee, and when an applicant isn't really willing to invest half an hour of their time to do paid simple work to test their attitude, it is not a good fit.

Do your homework before making a hiring decision, check your applicant's real data, real background and real work attitude.

#3: The Right Fit is More Than the Right Skills 

When you think of the perfect person to fill your job opening, you’re probably envisioning an individual with the ideal skill set to help with the problems or workload you’re facing. Remember, though, that the right fit isn’t just about having the perfect resume or training – it’s also about matching up personalities, schedule availability, and longer-term ambitions. In the grand scheme of things, training a mostly-qualified person with the right attitude and availability is going to be more efficient than finding someone with the perfect background who won’t be happy in your job.

Modern management often follows formula Hire for character, train for skills. This is simply due to you can change a person's skills, but you can only rarely change a person's character. 

To learn more about this hiring practise, check out HH Staffing agency having an interesting point of view on the matter. 

#4: Don’t Make the Paperwork a Hassle

Setting up things like payroll, benefits, and deductions for new employees can seem overwhelming to business owners who haven’t been through the process of onboarding a new staff member before. By getting just a little bit of expert help, and using the right tools, like ones mentioned in the first section of this article, you can automate most pieces of employee-related paperwork. That frees you up to get back to running your business and supervising your employee, rather than spending hours and hours every week on minor details.

Less the overhead is an issue, less over head it will get.

#5: Make Sure to Treat Your Employee Right

It’s easy to hire the right employee and turn them into the wrong one if you fail to train them correctly, overburden them with tasks that are outside their responsibilities, or treat them disrespectfully. Once that happens, they may begin looking for a new job, or worse, decide to start sabotaging your business from the inside out. Never forget that recruiting your first employee is a two-part process: first, you have to find the right person, and then you have to develop them into someone who can help your business grow over time.

Hiring your first employee is a big step and a milestone in the growth of your business. So, take a moment to congratulate yourself on making it this far, but also keep in mind that there are some serious risks and responsibilities involved.

Getting Hiring First Employee Right

Get your first hiring decision right and you’ll find that running a profitable business gets a lot easier. Forget about any of the five details we’ve mentioned, and you’ll be in for a very expensive and stressful education.

Looking for more ways to make managing your business easier? Automate more, and worry less? Are you looking for ways to save time and money to invest in what really matters? Try ZarMoney – our new cloud accounting app – for FREE today!

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