Signs you're ready
- You're turning down profitable work or delivering late.
- You spend many hours a week on tasks someone else could do for much less than your hourly value.
- Revenue is consistent enough to cover a salary for at least six months even in a slow period.
Know the true cost first
Employers pay more than wages: payroll taxes, statutory insurance, benefits, equipment, software and paid time off. Use the true cost of an employee calculator to see the full annual figure and cost per productive hour before you post the job.
Employee or contractor?
Contractors control how and when they work, use their own tools and usually serve several clients. If you control the hours, methods and tools, the person is likely an employee in the eyes of tax authorities — regardless of what the contract says. Misclassification can lead to back taxes and penalties, so check your local rules.
Write a job description that attracts the right people
- Lead with the outcomes the role owns, not a list of adjectives.
- Be specific about pay range, schedule and location — transparency attracts better candidates and is legally required in some places.
- Separate "must have" skills from "nice to have".
- Describe what it's genuinely like to work for a small business: variety, direct impact, close contact with the owner.
Interview for evidence
Ask about real past situations ("Tell me about a time you handled an upset customer") and include a short paid work sample that mirrors the job. Check two references. Score each candidate against the same criteria so you're comparing evidence, not impressions.
Handle the paperwork
- Register as an employer with your tax authority and set up payroll.
- Verify the person's eligibility to work.
- Arrange workers' compensation or equivalent insurance where required.
- Issue a written offer and employment agreement covering duties, pay, hours, probation and confidentiality.
- Display any required workplace notices and keep records.
A payroll provider can handle withholding, filings and payslips for a modest monthly fee — usually cheaper than fixing payroll errors.
Onboard for the first 90 days
Document your top recurring tasks before the person starts. Plan their first week hour by hour, set clear goals for 30, 60 and 90 days, and hold a short weekly check-in. Good onboarding is the difference between a hire that takes work off your plate and one that adds to it.