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You've launched your business, and it's beginning to expand. Now, you're ready to make your first hire--but don't be too hasty.
"It is easy to just want to fill that first slot and get things rolling," says Barbara Tallent, a serial entrepreneur and an advisor to Astia, a San Francisco-based nonprofit that runs programs for female entrepreneurs. "The wrong employee can become a huge burden for you and drag subsequent employees down as well."
Not sure where to start? Here are 10 questions to ask before deciding to hire your first employee:
Do you need to delegate some of your
tasks?
To keep your eye on strategic matters, you can't be weighed down
by too many mundane tasks. Ask yourself if you've reached that
point with your startup and need to start delegating some of the
work. The right hire can assume responsibility for everything
from cleaning to shipping to dealing with social media, says
Gregory Bier, director of the University of Missouri's
Entrepreneurship Alliance, which tries to foster entrepreneurship
at the school.
Do you have a defined role to fill?
Don't advertise a vague job title. Instead, take time to come up
with a job description that spells out the specific
responsibilities of the new employee. That will help ensure that
you pick a truly qualified candidate. Also, the more detailed the
job description, the easier it will be for you to set benchmarks
to measure the new hire's performance.
Could an independent contractor be just as
effective?
Rather than committing to a full-time hire--with a regular salary
and benefits--some businesses are better off retaining someone on
a freelance or contract basis, says George Deeb, managing partner
at Red Rocket Ventures, a consultancy that advises startups in
Chicago. If an executive assistant can easily handle the tasks
you need help with, such as scheduling or bookkeeping, then a
contract worker may be a good call.
Can your network help you find your
employee?
Hiring an employee recommended by someone you trust in your
network can take away much of the uncertainty and increase the
chances for a successful fit, Tallent says. So, check to see if
you have connections on social media sites, including Facebook
and LinkedIn, who could recommend a candidate--or even who could
be your first hire.
Are you hiring someone with your skills?
Be careful to avoid hiring a candidate who excels in areas that
are too similar to your own skills. "The new hire should have
strengths that compensate for [your] weaknesses," Bier says. For
example, if your Web analytics or finance skills are not up to
par, look for an employee with experience in those areas.
Can you make a multi-year commitment to the
employee?
Hiring a full-time employee means you need to be prepared to
provide steady income and developmental opportunities. "It moves
you toward being an employer rather than an entrepreneur," Bier
says. "You are responsible for someone else's motivation, pay,
safety, training--and drama." So before you commit, be sure to
have training goals in place, along with a plan for paying a
salary over the long-term.
How will the new employee add to your bottom
line?
Your first employee is a huge financial investment, so you need
to understand how the person can help make your business more
profitable, says Elyssa Sanders, New York-based cofounder of
Godfrey Sanders PR, a public relations firm that was launched in
2012. Sanders hired her first employee to help maintain daily
operations, so she could focus on bringing in more business. She
says the new account executive has worked out well, garnering
more media coverage for existing clients, which in turn helped
attract new clients willing to pay the monthly retainer fee.
Would you spend time with the employee outside of
work?
Because startups are known for long hours, it's especially
important to get along on a personal as well as professional
level. "One question we often ask ourselves after interviewing a
candidate is, 'Could you go camping with them,'" says Robin
Thurston, CEO of MapMyFitness in Austin, Texas, a platform for
fitness websites. When you interview candidates, look for shared
interests and approaches to solving problems.
Will the candidate be a good model for future
employees?
Before committing to a new hire, make sure the employee possesses
the necessary qualities to serve as a model to the workers you
may hire down the road. "You really set the culture of the
company with your very first employees," says Tallent, who looks
for people who understand how to be part of a small team but also
can work independently.
Can you count on your first hire to stay a
while?
The first employee will come to know the company inside and out,
so it's important that he or she is eager to grow with the
business. "It's all about loyalty," says Thurston, who adds that
several of his early employees have stayed with the company. Make
sure you understand the person's reasons for joining and the
experience he or she is seeking with your company. Less employee
turnover means you'll save money on recruiting and training
costs.
Copyright © 2013 Entrepreneur.com, Inc.
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