Hiring your first employee is a huge milestone, but it’s also one of the most significant areas where small businesses accidentally slip into HR trouble. Not because they mean to, but simply because they haven’t hired before.
The good news? With a bit of preparation, you can avoid the most common pitfalls and start your employer journey with confidence.
Here are the mistakes we see most often, and how to avoid them.
1. Rushing the process because you’re busy
Most founders hire when they’ve already reached breaking point. The pressure to “just get someone in” can lead to unclear job roles, mismatched expectations, or hiring someone who isn’t the right fit.
Avoid it:
Write a simple but clear job description. Be realistic about the hours, skills, and responsibilities. Clarity now prevents headaches later.
2. Not issuing a contract on time
By law, employees must receive a written statement of terms on or before their first day.
Many new employers don’t realise this or rely on an old template that no longer meets legal requirements.
Avoid it:
Use an up-to-date, legally compliant employment contract that reflects your business and the role.
3. Skipping the basics, like right-to-work checks
When you’re new to hiring, it’s easy to forget the administrative steps. But missing a right-to-work check can lead to serious penalties.
Avoid it:
Have a new starter checklist so nothing slips through the cracks.
4. Having no policies or handbook in place
If issues arise, such as lateness, absence, or conduct, you need policies to refer to. Without them, it’s hard to act reasonably or legally.
Avoid it:
A simple employee handbook with core policies (sickness, holiday, conduct, grievance) is all you need at this stage.
5. Assuming onboarding “just happens”
Onboarding isn’t just paperwork, it’s your employee’s first impression of your business. Without structure, you risk confusion, mistakes, or a poor experience.
Avoid it:
Share your policies early, organise access to tools and systems, and give your new hire a strong, confident start.
6. Trying to handle HR alone
Google can’t tell you what’s right for your business, and mistakes can be costly. A friendly, knowledgeable HR professional can save you time, stress, and risk.
Start hiring with confidence.
Our HR Foundations package gives small businesses everything they need to hire their first employees professionally and properly:
- 30-minute HR consultation
- Customised employment contract
- Offer letter template
- Basic employee handbook, including a set of core HR policies
- New starter checklist
Simple, flexible, and stress-free.