Starting a business is tough, but expanding your team? That’s a whole new challenge. Small business owners often struggle with limited budgets, finding someone with the right skill set, and making sure their first hire is a great fit. After all, this isn’t just about filling a seat—you’re setting the tone for your company’s future.
“Hiring your first employee is a major milestone, and if done wrong, it can lead to wasted time, money, and frustration,” says Tim Brown, the founder of Hook Agency, a firm that provides digital marketing services designed specifically for small businesses and contractors. “But don’t worry! With the right approach, you can bring in the perfect team member and avoid the common pitfalls.”
Here, Tim discusses his top six tips for helping small business owners get the hiring process right first time.
1. Define The Role Like Your Business Depends On It (Because It Does)
Before you post a job ad, make sure you’re crystal clear on what – or rather, who – you actually need. What tasks are eating up most of your time? What skills will make the biggest impact? A vague “jack-of-all-trades” job description will only lead to confusion and mismatched expectations.
“The very first thing to do when you’re hiring is write a detailed job description outlining the responsibilities, skills, and the type of person you’re looking for,” says Tim. “Also, be sure to think long-term—consider how this position will evolve as your business grows.”
2. Set A Realistic Budget—And Don’t Forget The Extras
Paying a new salary isn’t the only cost you’ll have to contend with when hiring someone. There’s also payroll taxes, benefits, and equipment costs to consider. If your budget is tight, think about alternative compensation options, like flexible hours, performance bonuses, or stock options, if applicable.
Underestimating the actual cost of hiring can lead to budget shortfalls and financial stress, so it’s important to have a clear financial plan before making anyone an offer.
3. Look Beyond The Resume
Qualifications matter, but so do attitude and adaptability.
“In a growing business, you need someone who’s willing to wear multiple hats,” says Tim. “Consider giving candidates practical assessments or trial tasks to see how they think and problem-solve in real situations. Soft skills like communication, teamwork, and problem-solving are just as important as technical abilities.”
You should also check for cultural fit when reading resumes. Someone who aligns with your business’s values will contribute positively to your team and likely stay with you longer.
4. Nail The Interview Process
In addition to assessing whether a candidate will perform well in their role, you need to make sure your business is the right fit for them. Ask behavioural questions to gauge how they handle challenges, such as, “Tell me about a time you faced a major problem at work and how you solved it.”
“Conduct multiple rounds of interviews if needed, including a casual conversation to assess personality fit,” says Tim. “Don’t just focus on their skills—learn about their work ethic, motivation, and cultural fit. Getting along with each other is very important if you’re the only two employees, so it’s really important to focus on this aspect more than you might at a bigger company.”
It can also be a great idea to involve a trusted advisor or mentor in the interview process, as they can provide a second perspective on potential hires.
5. Onboard Like A Pro
The first few weeks with a new hire are crucial. Provide proper training, set clear expectations, and check in regularly.
“A good onboarding process increases employee satisfaction and productivity, reducing turnover in the long run,” says Tim. “Give your new hire access to all necessary tools, set up mentorship or shadowing opportunities, and outline their goals for the first 30, 60, and 90 days. Regular check-ins can help them feel supported and allow for adjustments if needed.”
6. Avoid These Common Hiring Pitfalls
– Hiring In A Rush: A bad hire is worse than no hire. Take your time to find the right person, as hiring out of desperation often leads to regrettable decisions.
– Vague Job Descriptions: If you don’t know what you want, neither will your candidates. Be precise about expectations, responsibilities, and required skills.
– Skipping The Legal Stuff: Make sure contracts, tax forms, and labor laws are all squared away before bringing someone on board. Employment laws vary by region, so consulting a legal expert is advisable.
– Not Having A Proper Onboarding Process: A clear onboarding plan will set your new employee up for success from day one. New hires can feel lost and unmotivated without structured training and guidance, leading to early turnover.
– Ignoring Red Flags: Trust your instincts during the hiring process. If something feels off, take the time to dig deeper before making a final decision.
Tim Brown, the founder of Hook Agency, commented:
“Hiring your first employee is one of the most pivotal moments for a small business, but owners often underestimate the importance of clear communication and structured onboarding. Research shows businesses with a well-defined hiring process have significantly lower turnover rates, so how you introduce a new employee to your company is just as important as who they are as a person.
“My advice? Take the time to create a structured recruitment and onboarding plan before you start the hiring process. And remember, hiring is a two-way street—your new employee is also choosing you. Make sure your business is just as ready for them as they are for you.”
