Hiring Your First Employee? Everything You Need Before Day One
Taking on your first employee is an exciting milestone — and it can feel daunting. Here’s a straightforward UK checklist for small businesses getting ready to hire.
Taking on your first employee is an exciting milestone — and it can feel daunting. Here’s a straightforward UK checklist for small businesses getting ready to hire.
Taking on your first employee usually means your business is growing, you’re getting busier, and you need an extra pair of hands. Many business owners worry about getting things wrong, especially when it comes to employment law, payroll and paperwork. The good news is that with a little preparation, the process doesn’t need to be complicated.
Here’s a straightforward guide to what you should have in place before your new employee starts — from planning the role to contracts, payroll and their first day.
A printable tick-list covering planning, HMRC registration, contracts, payroll, pensions, onboarding and employee records.
No sign-up required — save or print and tick off each step as you go.
Before advertising a role, take a step back and think about what your business really needs.
Ask yourself:
Taking time to plan now can save you time, money and recruitment headaches later.
Before you can pay an employee, you’ll usually need to register as an employer with HMRC.
You’ll also need Employers’ Liability Insurance, which is a legal requirement for most businesses that employ staff.
Getting these essentials in place before your employee starts means everything is ready from day one.
Every employer in the UK has a legal responsibility to check that anyone they employ has the right to work in the UK.
These checks must be completed before employment begins, and you’ll need to keep copies of the documents you’ve checked.
Failing to carry out the correct checks can result in significant penalties, so it’s important not to overlook this step.
Every employee should receive a written statement of employment particulars from day one.
A well-written contract should clearly explain things like:
Having everything in writing helps protect both you and your employee and sets clear expectations from the beginning. Crawford Consultancy can help with contracts as part of our HR support.
Paying wages involves much more than simply transferring money into someone’s bank account.
You’ll need to:
Many small businesses choose to outsource payroll so they can focus on running their business while knowing everything is being dealt with correctly.
Every employer has responsibilities under workplace pension legislation.
Whether your employee qualifies for automatic enrolment or not, you’ll still have duties to assess your workforce and comply with pension requirements.
Understanding your responsibilities from the beginning helps avoid problems later.
While not every policy is legally required, having clear guidance for employees helps prevent misunderstandings and creates consistency as your business grows.
An employee handbook might include:
Introducing these documents early gives everyone clear expectations from day one.
A good induction helps your new employee settle in quickly and gives them confidence from the moment they join.
Think about:
A positive first impression often leads to a more engaged and productive employee.
Once your employee has started, it’s important to keep accurate records throughout their employment. Not only does this help you stay organised, but it also demonstrates compliance if you’re ever asked to produce information.
As a minimum, you should keep records such as:
Keeping everything organised from the start will save time and make managing your employee much easier as your business grows.
Hiring your first employee is a huge milestone and an exciting sign that your business is growing.
While there are legal responsibilities to consider, getting the right foundations in place from the beginning will make life much easier — for both you and your employee.
If you’re unsure where to start, getting support early can save you time, money and unnecessary stress.
At Crawford Consultancy, I support small businesses across Central Scotland with practical, affordable HR, payroll and business support. Whether you need employment contracts, payroll administration, employee handbooks or ongoing HR advice, I’m here to make the process straightforward and take the pressure off.
If you’re getting ready to hire your first employee, I’d be happy to help.
Book a free call Get in touch