Hiring Your First Employee in the UK: A 10-Step Checklist for Small Businesses
Hiring your first employee is a big step. It’s also the point where “I’ll just wing it” turns into “why is HMRC emailing me” if you’re not set up properly.
This guide is a practical, step-by-step checklist for UK small business owners hiring their first employee - especially if you have no HR team (i.e., you are the HR team). It’s not legal advice, but it will help you get the key steps right and avoid the common mistakes.
If you want something more specific, read these: -If you’re sorting contracts, read: Employment Contracts for UK Small Businesses: What to Include and Why. - If you want the compliance essentials, read: Small Business HR Compliance in Plain English.
Common First-Hire Mistakes to Avoid
Most first hires don’t go wrong because the candidate was terrible. They go wrong because the process was vague.
Hiring a “helper” instead of hiring for a clear outcome
Rushing the job ad and attracting the wrong people
Not setting up PAYE/payroll before day one
Offer/contract confusion (or sending it after they start)
No onboarding plan, then wondering why they’re stuck
Treating probation like a waiting game instead of support
Want to make progress in 30 minutes?
If you’re short on time (you are), do these three things first:
Write down the top 3 outcomes you want this person to deliver in the first 90 days
Decide whether you need an employee, worker or contractor
Draft a simple role summary: what success looks like + what they’ll do most weeks
That’s enough to stop you hiring “a person-shaped solution” and start hiring with clarity.
The 10-step checklist
1) Get clear on the outcome
Before you write a job description, get clear on what you actually need.
Ask yourself:
What problem will this hire solve?
What will be different once they’re in place?
What does success look like after 30/60/90 days?
Think outcomes, not just tasks.
Example outcomes:
“Customer enquiries responded to within 4 working hours”
“Bookkeeping up to date weekly, month-end ready by the 3rd”
“Jobs scheduled and confirmed 48 hours in advance”
2) Decide what type of hire you’re making (employee vs worker vs contractor)
This matters because it affects responsibilities, rights, costs and how you manage the relationship.
A simple guide:
Employee: you set hours, provide work and have ongoing control over how the job is done
Worker: often more casual/variable arrangements, still with key rights
Contractor: you’re buying an output/service; they typically control how/when they deliver it
If you want someone embedded in your business doing an ongoing role to your standards and schedule, you’ll usually be hiring an employee.
If you want a specialist delivering a defined piece of work with their own methods, that’s often a contractor.
(If you’re unsure, get advice. Misclassification can be expensive and annoying - the worst kind of expensive.)
3) Set up the basics to pay someone properly
Before day one, make sure you can employ someone without chaos.
At minimum:
Register as an employer (PAYE) and set up payroll (software or provider)
Arrange Employer’s Liability Insurance (usually required)
Understand holiday entitlement basics and how you’ll manage time off
Be prepared for workplace pension duties (auto-enrolment obligations apply)
Done looks like: PAYE/payroll is ready to run, insurance is in place and you have a basic plan for holiday/pension admin.
4) Write a job description that reflects reality
A job description is not a wish list. It’s clarity.
Include:
Job title and who they report to
3–6 main responsibilities
The outcomes you want them to achieve
Location (remote/hybrid/on-site), hours and any flexibility
Must-haves vs nice-to-haves
Salary range (if you can include it - it saves everyone time)
Keep it clear and honest. Your future employee will discover the truth anyway.
5) Make recruitment consistent (and less “vibes-based”)
A simple, repeatable process stops you hiring based on gut feel alone.
A good basic structure:
Advertise the role
Shortlist against clear criteria
Structured interview (same core questions for everyone)
Optional practical task (short, relevant, fair)
References and checks
Offer
This is how you avoid accidentally hiring the most confident talker instead of the best fit.
6) Communicate clearly with candidates
Good candidates have options. Your communication is part of your employer brand - even if you’re “just a small business.”
Do the basics well:
Confirm receipt of applications
Set timelines (and be honest if they slip)
Keep candidates updated
Close the loop with rejections
Small businesses look bigger and more professional when they communicate well.
7) Cover compliance essentials early (don’t leave it to day one)
This is the part that causes unnecessary stress later.
Make sure you have:
Right to work checks completed properly and recorded
A clear offer in writing
A contract issued on time
Core policies ready (even if short and simple), such as:
absence/sick reporting
disciplinary/grievance approach
confidentiality/data protection
acceptable use if you provide equipment
Done looks like: right to work check completed and recorded and the offer/contract issued before they start.
8) Plan their first week (onboarding that actually works)
Onboarding isn’t “here’s the laptop, good luck.”
A simple first-week plan should include:
Introductions and who to go to for what
Access to systems/tools and basic training
A “how we work” overview (communication, priorities, expectations)
A clear first task they can succeed at
Short daily check-ins at the start
Your job is to help them become productive quickly - not to test their mind-reading skills.
9) Use probation as support (not a trapdoor)
Probation should be a structured runway, not silent judgement.
Good probation includes:
Clear expectations from the start
Regular feedback (early and specific)
A couple of scheduled check-ins
Documentation of what’s going well and what needs improving
Done looks like: expectations set in writing and check-ins booked (for example: week 2, week 6 and near the end of probation).
10) Set a 30-60-90 day rhythm
This gives both you and the employee clarity, momentum and a shared definition of success.
First 30 days: learn and settle
Understand the role, systems and customers
Complete starter tasks with support
Build confidence and relationships
By 60 days: contribute and take ownership
Manage core responsibilities with less oversight
Improve small things
Build reliability
By 90 days: consistent performance and impact
Deliver outcomes consistently
Suggest improvements
Reduce your workload (the whole point)
All in all, hiring your first employee can be a turning point - if you do it with clarity, structure and a process you can repeat.
FAQ
Do I need a contract before someone starts?
In practice, yes. It prevents confusion. At the very least, have the key written particulars agreed and ready before day one.
What policies do I need for a first hire?
Keep it lean. Start with standards for conduct and performance, absence, and equality/behaviour expectations — then add as you grow. If you want the full list and templates, see the HR documents post linked above.
Can I “trial” someone first?
Yes and be careful. Trial arrangements can still create rights depending on the setup. If you want a safe way to assess fit, build it into recruitment (a practical task) and/or use probation properly.
What’s the most common first-hire mistake?
Not being clear on what “good” looks like — then making it up as you go.
If you’d like support
If you want to hire your first employee with confidence (without overcomplicating it), we can help you set up a simple, reusable first-hire system.
Typical support includes:
role clarity and job description refinement (so you hire for outcomes)
practical interview structure and scorecard templates
a lean document pack (offer, contract, starter checklist) that matches how you work
onboarding and probation rhythms managers can actually follow
Want the full toolkit?
If you’d like the role clarity worksheet, interview scorecard and candidate comms templates as downloadable resources, we can send them across.
This is general guidance for UK employers. If you’re dealing with something live, the detail matters - get advice before taking action.
