Kyle Stinson

How to hire your first employee (and get it right)

TLDR
Hiring your first employee is a big milestone. It doesn’t have to be stressful. This guide breaks down the key steps—recruiting, compliance, payroll, and onboarding—so you can grow your team with confidence and focus on running your business.

The right way to hire your first employee

Hiring your first employee is exciting and a little scary. Done right, it frees you up to grow your business. Done wrong, it can add stress and costs you didn’t plan for. Here are simple ways to get it right, with clear steps you can follow.

Know when you’re ready

Before you post a job, ask:

  • Is my workload consistently too much for one person?
  • Can I afford to pay wages, taxes, and benefits?
  • Do I have tools, like payroll software, to automate the entire process?

According to Statistics Canada, 8.6% of businesses cite recruiting skilled employees as a top challenge over the next three months. Planning ahead helps you avoid becoming a statistic.

Start with a clear job description

The right hire starts with a clear and honest job posting. Make sure you:

  • Define the role. Explain the main responsibilities and what success looks like in the first few months.
  • Be transparent. Share pay, hours, and any flexibility upfront.
  • Hire for fit, not just credentials. Focus on skills and values rather than just years of experience.

Prioritize the following qualities:

  • Adaptability. Comfortable wearing many hats and switching gears in a small team.
  • Self-starter. Takes initiative and solves problems without constant direction.
  • Cultural fit. Believes in your mission and aligns with your values.
  • Strong communicator. Shares ideas clearly, asks good questions, and stays responsive.
  • Growth mindset. Keen to learn, try new things, and grow with your business.

Tip: Small businesses often attract great talent with flexibility and purpose, not just salary.

Understand your regulatory obligations

Canadian businesses have to get this part right:

  • Register for a payroll account with the CRA.
  • Know your remittance schedule for taxes, CPP, and EI.
  • Set up employment contracts and follow provincial standards.

If it sounds like a lot, that’s where tools like Huumans Payroll can help. You don’t have to figure it all out alone.

Create a simple onboarding process

Your new hire’s first weeks matter:

  • Set them up with the tools and logins they need.
  • Walk through expectations and company culture.
  • Schedule regular check-ins to answer questions.

Even a one-page welcome guide can go a long way.

Invest in retention early

Hiring is just the start. To keep great people:

  • Recognize wins and give feedback often.
  • Offer growth opportunities, such as training and mentorship.
  • Be flexible where you can because work-life balance matters. 

A happy first hire becomes your biggest advocate and helps attract the next one.

Hiring your first employee doesn’t have to be complicated 

Plan ahead, stay compliant, and focus on creating a great experience for your new hire. Need help with payroll and onboarding? Check out Huumans and speak with a member of our team to learn more about best practices.

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