Hiring the first employee is a tough decision, It is like firing the first bullet not knowing whether it will hit the target or not. There are many questions in one’s mind. When to hire? Whom to hire? What will be the cost? Etc.
The following 7 things have to be kept in mind in order to hire your first employee:-
- Are you ready for your first hire? Is your business expanding?
The company is growing well. There has been increasing profits in the last few months. The clients are pouring in and the workload is increasing on the current working professionals. These may be some of the indicators which a person will see in tangible so as to think that now is the time to hire. But the employee planning has to be done well in advance anticipating the growth so that you can make the most of the opportunity and have the manpower when it is necessary. It has to be a strategic decision by the firm.
- First hire for attitude and then for skills
Skills can be developed over time but one should have the right attitude for it and hence the above statement is said. There have been many occasions where highly skilled people are not able to stay in the organization just because their attitude is not right. The attitude should be learning and collaborative to be successful.
- Find the right fit for your organization
Following the above point, what will define the right fit and how to gauge it is the biggest question which the hiring professionals think of. To have a tab on it we should list the key performance indicators (KPI’s) for the organization along with what attributes are needed to be in the organization which comes from its very culture. A organization can be bureaucracy or can be open ended based on which we can have the attribute. While in the interview just try to give conditions based on it and mark to find the right fit for the firm.
- Calculate the cost per hire
The biggest worry a hiring professional has is the bad hire and the cost incurred in that. The cost of bad hire can be calculated again by doing cost based accounting for the factors in which cost is incurred during the hiring. Once we are able to identify the factors which can be time cost allocation of professional, infrastructure used, overhead cost etc. Then according to the rates the cost can be allocated and hence if the hire turns bad, we know what we have lost.
- Evaluate the ROI according to the KPI’s
We should also keep a tab of the revenue generated by the particular individual. Though we may not be able to gauge it exactly but we will have the idea of how much value is being added by the employee in terms of the return on investment. The planning for it should be done at the time of first hire.
- Keep employee for some time in probation
Directly hiring an employee and then later regretting it is common practice in today’s time. They may leave early, may not be a fit for the organization etc. hence an employee has to be kept on probation for a period decided by the company in which it is able to gauge its entire requirement. This helps them to avoid incurring the unnecessary cost and thus help in good hiring.
- Check out all the legal issues your firm should follow, take their identification pin etc.
The firm is new and is going for its first hire and hence there are many legal issues one should look for, the type of firm, the hiring and other rules etc. The legal identification of employee, all tax related issues should be dealt properly in order to have smooth hiring.
If we keep in mind the above things more or less we can have a smooth and proper hiring without incurring much cost or rather to say saving the cost for the firm.