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What You Need to Do Before Hiring Your First Employees



It’s hard to say enough about the good that employees can do for a business. They’re the ones that keep your business running smoothly and the ones who handle the day to day operations so that you as the owner can turn your attention to other important matters. It’s important to get it right as much as possible when it comes to hiring, though, so make sure you understand what you need to do before you get started.

Understand Your State’s Labor Laws

Every state has labor laws of some sort. They change from state to state, with some being more strict than others. Every state has child labor laws that must be observed if you hire any minors. Make sure you understand what your state’s labor laws are before you hire your first employees. They can have an impact on how you organize the goings-on of your business, which can impact who you want to hire. Knowing that ahead of time is always a good idea.

Set Up a Payroll System

No one’s going to work for you if you don’t pay them for their time. The best way to go about making sure that your employees get paid properly and on time is to have a payroll system set up with software that is appropriate for the task. Using software to manage payroll can ensure accuracy compared to a manual system. Given the impact that payroll discrepancies can have both on employee morale and your businesses finances (you can get fined if you have errors on payroll taxes), this is one area where you definitely want accuracy to reign supreme.

Decide How You’ll Compensate Them

Before you hire anyone, you need to decide how you’re going to compensate them. Salary is a key component. You’ll need to pick a payscale that makes sense for your business. There’s more to compensation than just a yearly salary, hourly rate, or piecemeal rate. Employee benefits are more of an expectation than a perk these days. If you want to attract the best employees (and you should), offering a solid benefits package is just one of the things you should be doing.


The more you understand what you need to do before you hire your first employees, the better a chance you’ll have at setting yourself up for success from the beginning. Employees can be the lifeblood of your company and the reason why you succeed, as long as you get it right. They can make or break your business, so do everything you can to be smart about who you hire and how you go about it.


Check out this article on how to attract employees when you can’t afford to pay more!


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