Find Out What It Takes to Bring On the Help You Need
Thinking about hiring your first employee? It’s an important decision—having the right person can strengthen your business, help it run smoother and simplify your day to day. Keep reading to learn when it might be time to hire, plus explore considerations and steps to take to bring on your first team member.
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When to Hire Your First Employee
Need help staying on top of daily tasks? Fulfilling a large order? Want time to focus on the big picture? Need someone who has a specific skill? These are just a few examples of when it may be time to hire your first employee.
Tip: Your business plan should include a section describing your team—and anybody you plan to hire to round out your team. You can use this as a guide when thinking about hiring.
Hiring Considerations
Bringing on an employee is a big responsibility. Here are some things to consider before moving forward:
- Why do you need an employee?
List out the reasons you need to hire someone. What problem are you hoping to solve with this hire? Do you need this person full-time, part-time or temporarily? Should you consider a contract or freelance employee?
- Can you afford an employee?
Consider more than just an employee’s paycheque when asking yourself this question. Look into average wages and benefits. Employees come with other costs—such as time spent onboarding and training. Make sure that this employee will help your business grow enough to cover your investment in them.
Tip: A Canada Small Business Financing Loan may provide the capital you need to support the growth of your business—including hiring your first employee. This government-supported loan program offers up to $1,000,000 to small businesses.1
- Is your business registered?
To hire an employee, your business must first be registered or incorporated with the Canadian government and have a business number. Registration allows you to do a few important things:
Establish payroll
Open an account with the Canada Revenue Agency (CRA) for payroll deductions
Set up Workers’ Compensation, health benefits and more
Register your business with Ownr. From sole proprietorships to complete incorporations, Ownr has the tools and resources you need to start and manage your business.
Register Your Business
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Are you familiar with employment standards and labour laws?
To Federal and provincial employment standards vary throughout Canada and provide regulations around minimum wage, holidays, overtime and more. Visit the Canadian Federation of Independent Businesses (CFIB) to learn more. Be sure to talk to an HR professional or attorney for specific advice.
- Do you have the solutions and systems in place to manage an employee?
You will need a business account and the right payments, accounting and potentially other systems in place to pay your employee(s). If your small business doesn’t have an HR department, there are resources available to support you. For example, through ADP’s HR solutions, you can:
Speak with HR specialists to find answers to your HR questions
Receive legal advice from employment lawyers (via a third-party partner)
Access an online portal that includes best-practice HR resources
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Can you fulfill your responsibilities as an employer?
Your employee will have job responsibilities—and so will you as an employer. There are a few legal and financial obligations to uphold to protect your business once you hire an employee. According to Ownr, here are a few examples of your responsibilities:
Within three days of employment, verify your employee’s Social Insurance Number (SIN) card.
Ensure employees have filled out all required tax forms, including the federal TD1 and provincial TD1 form.
Set up a payroll account through the CRA to collect, remit and report on payroll deductions for Employment Insurance (EI), Canada Pension Plan (CPP) and personal income tax.
How to Hire Your First Employee
1. Create a job description.
Highlight employee expectations, the type of employment (full-time, part-time, or another arrangement), the skills needed and any experience or degrees required to do the job. It’s important to get the job title right as well so that you don’t attract unqualified applicants. You should also include an overview of your company and a high-level list of benefits. The more time you spend putting together a thorough job description, the more qualified applicants you may attract.
2. Get your job listing out into the world.
There are a variety of ways to market your job listing. Online job boards, such as Indeed or LinkedIn, and services like Magnet can help you find people with the specific skills you’re looking for. Plus, don’t overlook the power of word-of-mouth. Share the job listing with your connections to see if they know someone who may be the right fit.
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3. Review applications and interview the top candidates.
As you consider applications and interview candidates, use these tips to make the most of your time:
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When interviewing: |
After the interview: |
- Seek to interview candidates with the experience, education and qualifications that the job requires.
- Do brief initial phone screens to make sure any candidates you are thinking of interviewing have the potential to get hired before bringing them in.
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- Ask all candidates the same questions so you can compare their answers.
- Be aware of what you are not allowed to ask candidates. In most cases, it is illegal to ask about race, religion, gender, disabilities, age, ancestry, marital status or sexual orientation. Check your province’s website for more information.
- Consider whether the candidate will bring fresh creativity and knowledge to the job.
- Spend time getting to know the candidate’s character and core values to ensure they’ll be a good cultural fit for your business.
- Do multiple interviews and, if applicable, have your business partners or co-owners participate in the interviews.
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- Think about which individual brings the most to the table for the specific job you’re hiring for—taking their skill set, personality, compatibility with your business culture and goals into account.
- Check references. You’re letting this person join your team—you want to be confident they are trustworthy and the right person for the job.
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4. Make an offer.
Be sure to extend a formal offer that clearly states the start date, employment type (full-time, part-time), salary or hourly pay, benefits, job duties, work conditions (whether they’ll work onsite or remotely) and their designated work hours.
5. Do a background check after your candidate accepts the position.
This protects your business and makes sure your candidate doesn’t have any discrepancies in their application or work history. Depending on your industry, you may want to look at certain aspects of your new hire’s background. For example, if you are hiring a delivery driver, consider doing a driving record check.
Visit ADP to learn more about performing a background check.
6. Train and onboard your new hire.
Training your employee will vary from role to role. Think about ways to prepare your employee for the job and make sure they have the tools they need to be successful. In addition to training your employee, you’ll also need to ensure they fill out any paperwork—including tax forms—as required by law.
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