Tip # 27: Hiring Your First Employee: Navigating the Hiring Process

Josh Baker
Aug 28
3 min read

Bringing on your first employee is an exciting milestone—it means your small business is growing and you’re ready for support. But hiring can also feel overwhelming if you’ve never gone through the process before. From writing a job description to onboarding your new team member, there are important steps to take to ensure a smooth experience for both you and your hire. In this blog post, we’ll walk through the essentials of hiring your first employee and share how the Small Business Development Center (SBDC) can guide you every step of the way.

Step 1: Determine Your Needs

Before you start recruiting, clarify exactly what role you need filled. Ask yourself:

What tasks are taking up most of my time?
Which responsibilities can I delegate?
Do I need a full-time employee, part-time help, or a contractor?

Having a clear idea of your needs will help you write a better job description and attract the right candidates.

Step 2: Create a Job Description

A well-written job description sets expectations and attracts candidates who are the right fit. Include:

Job Title and Summary: A clear, simple title with a short description.
Responsibilities: A list of key duties.
Qualifications: Skills, education, or experience required.
Compensation and Benefits: Be transparent if possible.

This will not only save you time but also help candidates self-select before applying.

Step 3: Understand Legal Requirements

Hiring your first employee comes with legal and compliance responsibilities. You’ll need to:

Apply for an Employer Identification Number (EIN) if you don’t already have one.
Register with state agencies for unemployment and workers’ compensation.
Set up proper payroll and tax withholdings.
Comply with labor laws, including minimum wage and overtime rules.

Step 4: Recruit and Interview Candidates

Post your job on job boards, local community sites, and social media. You can also ask for referrals from your network. When interviewing:

Prepare consistent questions to compare candidates fairly.
Look for a mix of technical skills and cultural fit.
Don’t underestimate soft skills like communication and adaptability.

Step 5: Make the Offer and Onboard

Once you’ve found the right person:

Extend a written job offer with pay details and start date.
Collect necessary paperwork (W-4s, I-9s, direct deposit info).
Onboard them by introducing them to your systems, processes, and company culture.

Onboarding is key—it helps new employees feel confident, supported, and ready to succeed.

Step 6: Build a Positive Work Environment

Hiring your first employee is the beginning of building a team. Focus on creating a workplace where people feel valued and motivated. Clear communication, fair policies, and recognition go a long way toward retaining talent.

How the SBDC Can Help

The Small Business Development Center (SBDC) can provide guidance throughout the hiring process. Advisors can help you:

Create effective job descriptions.
Understand compliance and payroll requirements.
Develop onboarding strategies.
Build policies to support long-term growth.

Having expert advice can ease the stress of hiring your first employee and set you up for success as an employer.

Hiring your first employee is a big step in growing your business. By planning carefully, staying compliant, and creating a welcoming environment, you’ll not only find the right person for the job but also build the foundation for a thriving team. And remember—you don’t have to figure it out alone. The SBDC is here to guide you through each step, making the hiring process less daunting and more rewarding.