Guest Post: Hiring your first employee, part 4

So you’ve picked the right time to hire your first employee, you went about it the right way, and your cashflow is in check. Let’s assume you’ve found the right person for your role, and they’re ready to come on board! (Or perhaps, already there!)

Firstly, lets talk expectations. It is very unlikely that the person will do the job at 100% of the level that you did the job – so throw that expectation out of the window! Don’t accept mediocrity, but push for a realistic 90% out of your employee.

Brining on your first employee is always going to be the toughest one – but it’s so important you do it right. You may think it’s okay not to take this person through your processes or ‘induct’ them formally into your company, but if you don’t get it right for your first hire, how can you expect to have it right for any other hires?

We’re talking:

• Induction (it doesn’t have to be a formal, corporate thing!)
• Setting up the role
• Setting up the systems
• Setting up the culture

Yes, it does sound a bit boring and chore-like, but believe me, it’s necessary!

Determine policies and systems around…

The role itself

• What is the role
• How is it to be performed
• How long should each task take
• What are the hours the employee is expected to work
• What is the pay for the employee
• What are the Key Performance Indicators for the role (what makes the person a success in the role, and how can that be monitored?

HR related aspects

• Employment contracts or offer letters as well as confidentiality agreements
• Probationary periods (standard is 3 months)
• Review periods
• Communication and feedback process (formal and informal)
• Sick leave requirements (i.e. when a doctor’s certificate is required)
• Workplace safety issues
• Boundaries (especially if it’s a home office and they are therefore entering your private home)
• Questions and notes policy – i.e. encourage questions but if they ask the same thing a number of times…
• Commissions and other structures

Initial training

It’s important to realise that no one is going to be able to enter your business and hit the ground running. They will need lots of your time and attention to show them the ropes, tell them about the business, and explain each process. (I would suggest creating a procedures manual as you go if you don’t already have one in place — this will save you a lot of time in the future!)

Depending on the role, by the one-month mark you should expect that they can do ‘the basics’ of the role on their own. By two months, they should be fairly independent from you, except for any unusual requests or tasks that arise. In the third month, you can evaluate them and how they are progressing – and determine if you would like them to continue beyond their probationary period or not.

Remember:  you are not to do their role – otherwise, why did you hire them?

If you have any questions about this series (or anything else you think I could help with!) leave a comment below, or visit my website and drop me a line.

Until then,

David Henderson.

Click here to read Part 1.
Click here to read Part 2.
Click here to read Part 3.

David Henderson is one of a rare breed – a qualified and skilled financial services and business consulting professional who has also achieved success as a business owner and entrepreneur. David is a director on the board of a public company and CEO Asia Pacific of ROCG, an international professional services firm which specialises in family and privately owned businesses.

David is the creator of the exciting CashMAX™ suite of business accelerating tools specifically designed for privately owned businesses and based on years of work with thousands of SME companies. He has personally helped many of these owners generate their own business success.

For more information visit www.davidhendersononline.com

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