Hiring your first employee – or adding to your growing team – is one of the most exciting milestones in business. But it can also feel daunting: the legal responsibilities, the financial implications, and the process of finding the right person.
At CE People, we’ve just been through this process ourselves as we hired our very first team member, Soeli, who joined us as an HR Consultant.
We followed the same steps we advise our clients on – so we know first-hand how important it is to get them right.
Here are 10 key steps to employing staff (without the headache).
1. Understand your business needs
Before you even draft a job description, ask: What do we really need?
Is it a full-time role, part-time, or something that could start as freelance or fixed-term?
Think about the skills gaps in your business today and the longer-term growth you want to achieve.
For us, we knew we needed another HR professional to support our growing client base and to bring even more expertise into the team.
2. Budget properly for employment
It’s not just about salary. Employers need to consider National Insurance, pensions, holiday pay, sick pay, training, and other benefits.
For example, the real cost of an employee is estimated to be around 1.3-1.5 times their salary when you factor in on-costs. Having a clear budget upfront avoids surprises later.
Did you know, that from April this year employers now pay 15% National Insurance on employees’ earnings above the secondary threshold of £5,000 per year, or £417 per month. This is a considerable amount for many businesses, especially those with a large number of staff, so should be well considered.
3. Get your paperwork in order
A written statement of terms and conditions (contract) is a legal requirement from day one. Policies like absence, grievance, disciplinary, and flexible working are also essential, even if you’re a small business.
At CE People, we made sure Soeli had her contract, staff handbook, and policies ready before her first day – setting a professional and supportive tone.
4. Recruit the right way
Job adverts should be inclusive, transparent, and compliant with the Equality Act 2010. Interviews should be structured to fairly assess skills and fit.
Shockingly, 1 in 5 candidates say they’ve experienced bias in the hiring process (CIPD, 2024). A fair and transparent approach doesn’t just protect you legally – it helps you attract the right talent.
5. Carry out checks and onboarding admin
Right-to-work checks are a legal must, along with collecting emergency contacts, bank details, and ensuring payroll and pensions are set up.
Many businesses fall at this stage, but the penalties can be huge – fines for illegal working can reach £45,000 per worker (Home Office, 2024).
6. Prioritise induction and onboarding
First impressions matter. A structured induction helps new employees feel welcome, understand expectations, and get up to speed quickly.
It also shows them you invest in your employees, including new starters, so sets the tone for the rest of their career with you.
From IT access to an induction plan, we made sure Soeli’s first day felt seamless.
7. Create a positive culture
Policies and handbooks are important, but culture is what keeps people engaged.
From day one, be clear about your company’s values and how you support your people.
We introduced Soeli not just to processes, but to how we work at CE People and why that matters so much to us and our clients. It was important to us that we found someone who shared our values.
8. Train managers and leaders
Hiring isn’t just about the employee – it’s about making sure those leading them are equipped too. Training managers in handling absence, giving feedback, and managing performance is essential to prevent issues later.
At CE People, we advise every new employer to upskill managers as part of their growth journey.
9. Keep communication open and honest
Hiring doesn’t end with contracts signed. Regular check-ins, feedback, and support are what turn a new starter into a thriving tream member.
New employees will have questions – and existing staff may have concerns about changes. Clear, honest communication builds trust and ensures smoother integration.
Tip: Regular one-to-ones during the probation period are one of the simplest, most effective ways to keep communication flowing.
10. Think about the future
Employment isn’t just about today. Planning ahead for progression, retention, and succession makes your business more resilient.
Research shows that 76% of employees are more likely to stay with a company that offers continuous development (LinkedIn Learning, 2023).
If you’d like some more tips and advice, we’ve also recently featured on All Things Business talking all about recruitment and how to build a successful team, have a read here.
Meet Soeli – CE People’s First Employee
We couldn’t finish this blog without introducing our newest team member.
We’re proud to say we’ve just grown our own team by following these steps and welcoming Soeli, our new HR Consultant. With 5 years’ experience in HR and a passion for employee wellbeing, she brings incredible energy to the team.
We asked Soeli a few questions so you can all get to know her a bit more:
- Her HR Journey so far: “I’ve been in HR for 5 years, qualified in 2020, and worked with Emma and Claire in a previous role.”
- Why CE People? “I’ve seen the value they bring to SMEs and wanted to be part of that journey.”
- HR advice she gives most often: “I would always advise a line manager to listen to their teams – you learn a lot by listening to people.”
- Biggest passion: “Employee wellbeing – because a happy employee is an engaged employee.”
- Fun fact: She’s just started roller skating!
Final Thoughts
Hiring your first (or next) employee is a big step, but with the right foundations it can transform your business.
At CE People, we’ve walked this path ourselves – and we’re here to support other SMEs to do the same, with confidence.
If you’re planning to employ staff soon and want to make sure you’re compliant, confident, and set up for success, we’d love to chat.
