Being an entrepreneur is a unique journey that looks a little different for everyone.

For some entrepreneurs, that journey includes hiring employees to scale the business.

Like almost all aspects of owning a business, making your first hire can be exhilarating, exhausting, empowering, and overwhelming – all at the same time. This article is designed to help you navigate those emotions and guide you through the process of becoming an employer.

First Things First: Understand Your New Identity

Most hiring guides immediately dive into how to write a job description, post a job opening, interview candidates, make an offer, and comply with state and federal employment regulations. This approach might make sense when you’re adding your second, fifth, or tenth employee – but when you’re making your first hire, you are assuming an entirely new identity, and it’s worth taking some time to reflect on what that means.

What does it mean to be an employer?

The day your first employee joins the team, you are no longer “just” the visionary of the business.

Now you are a leader, a mentor, and a steward of someone else’s livelihood. This transition comes with new responsibilities, both legal and ethical:

• You are accountable for creating a safe and equitable workplace.
• You are responsible for providing fair compensation.
• You are charged with training someone to work in alignment with your values.

Being an employer also means embracing a new emotional landscape. You'll experience the pride of building a team, the joy of shared accomplishments, and the challenges of delegating assignments and managing different personalities. You are no longer only responsible for yourself or for the identity of your business – you are responsible for a whole other human being, sometimes for a longer portion of the day than you spend with your closest family members. That’s a lot to take on!

Try this: Spend a few minutes thinking about your shift in identity from entrepreneur to employer.

• What qualities do you admire in a leader? What steps can you take to embody those qualities?
• What qualities do you dislike in a leader? What steps can you take to avoid adopting those qualities?
• How will you balance implementing your vision for your business with attending to the daily needs of your team?

What does it mean to be the *first* employee?

Just as becoming an employer is about way more than learning how to set up payroll, being the first employee in a business is also a key identity that goes beyond a list of job responsibilities.

The first employee who signs on to your team is as responsible for shaping your identity as an employer as you are. After all, without them you wouldn’t have that new identity in the first place! This means it’s crucial to select someone who shares your vision for your business, and is ready and willing to adapt as your vision grows and changes. Unless you have years of prior management experience, you will be navigating a lot of firsts with your new employee. This can range from practical problem-solving, like:

• Implementing a timekeeping system
• Setting up technology and workflows
• Communicating expectations about job responsibilities and performance standards

…to more complex conflict resolution, including:

• Responding when your employee communicates a personal crisis
• Managing differences in communication styles or work habits
• Learning how to discipline or let someone go

As you navigate the milestones of becoming an employer, you will find a constant need to both extend grace to someone who is learning how to work in your business, and receive grace back from that person as you develop your leadership skills.

Try this:  Reflect on who the ideal first employee is for your business.

• What “soft skills” – like adaptability, communication, growth mindset – are a must-have in your first employee? What soft skills are you willing to impart through mentorship and your own leadership example?
• What “hard skills” – like technology expertise, copywriting, financial literacy – are a must-have in your first employee? What hard skills are you willing to impart through training?

Now Let’s Get Into the Details of Hiring

Once you have a vision for who you want to be as an employer, and who you want on your team, you’re ready to tackle the practical basics of hiring your first employee.

1. Create a Clear Job Description

A well-crafted job description is your blueprint for attracting the right candidates.

It should include the following categories:

• Responsibilities: Clearly outline the role's duties and expectations.
• Qualifications: Specify the required skills, experience, and education.
• Behavioral Competencies: Identify the soft skills and traits that align with your company culture.

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Try this:  Check out our Job Description Template to get started.

2. Develop a Recruitment Strategy

A recruitment strategy helps you stay organized and on track.

This should include:

• Identification of sourcing channels (e.g. job boards, social media, email list)
• The expected salary range for the position
• An internal timeline of how long the job posting will remain open, when you’ll conduct interviews, when you plan to issue an offer
• A list of interview questions
• An offer letter template that outlines the terms of employment, compensation, benefits, and any contingencies (e.g. passing a background check)

Try this: We highly recommend behavioral interviewing, which uses open-ended questions about past behavior as a predictor of future performance. For example, "Tell me about a time you faced a challenging deadline and how you handled it." Framing the question by asking for specific examples of past behavior tends to reveal more useful information than a question like “what are your strengths and weaknesses.”

3. Onboarding and Orientation

A smooth onboarding experience sets the tone for your employment relationship, and should include as much thought and intention as you put into onboarding a new client.

Your onboarding process should include:

• Required paperwork (e.g. I-9 verification, W-4 tax forms, and any state-specific documents)
• Company-specific policies that address your culture and expectations (e.g. an employee handbook)
• All necessary training and support to empower your new hire to excel in their role
• Scheduled check-ins to offer guidance, address concerns, and develop open communication

Try this: Develop an onboarding checklist that includes goals and timelines for the first week, month, and quarter.

4. Legal and Compliance Considerations

Finally, once you assume the identity of “employer,” you become subject to a variety of federal and state employment laws – including anti-discrimination, wage and hour, and safety regulations. These rules can be highly specific to your industry and location. They’re not impossible to navigate on your own, but if you have the room in your budget to consult with an HR professional you can make sure you start off on the right foot.

The Bottom Line:

Becoming an employer isn’t easy, but with the right approach and practical groundwork in place you can scale your business as far as your heart desires!

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