If hiring your first employee has been on your mind lately but you've been feeling a bit nervous, you’re not alone. Most small business owners face a lot of fear, doubt and uncertainty when it comes to hiring their first employee. 

It’s an exciting time. Your business has grown to the point where you’re ready and able to hire help. You can almost feel the sense of relief that having another pair of hands will bring.

It's a pretty big deal to hire someone for your team though and you may naturally be worried. That little voice inside your head is probably saying things like:

• “Who are you to hire a team!”

• “What in the world are you thinking?!”

• “You don’t know the first thing about leading a team!”

• "Where do you even start?"

If your inner mean girl is using a megaphone to try and shut this whole thing down, then this post is for you!

Over the years, I’ve heard first-hand the fears, doubts and worries business owners face when they’re gearing up to hire their first team member. And a lot of times, it stops people cold in their tracks. But it doesn't have to!

I want you to know that your concerns are absolutely valid. However, they don’t have to keep you stuck in fear and not getting the help you need. 

Keep reading to learn my favorite tips on how to overcome the 5 most common fears about hiring so you can build your confidence and hire the help you need and deserve this year!

The 5 Most Common Fears About Hiring and How to Overcome Them:

Below are the most common fears I hear from business owners about hiring their first team member. I'm going to share my top tips for how you can overcome each of these fears so you can get the support you need and deserve.

1) “I don’t know where to start.” 

A smart hiring process begins with getting clear on who you need to hire first in your unique business. 

Business owners all have different strengths, different business models, and different needs. Once you’re clear on who you should hire for your business, the rest of the process becomes much easier.

Since this is the #1 question we get when it comes to making your first hire, we created a short, fun quiz to help you figure it out!

2) “I’m afraid I won’t hire the RIGHT person.”

In order to hire the right person for your business and team, you need to get really clear on a handful of key points. Let's break down the three most critical points:

• Know your needs – First, you need to know exactly what kind of help you need in your business before you can find the right person who will be able to meet those needs. (Refer back to Common Fear #1.)

• Know what the "right person" actually means to you – The phrase "right person" can mean a lot of different things to different people, so you need to define what it means to you. Otherwise, it won't actually help you find the right person. Think about what specific qualifications, skills, and/or personality traits the right person will need to have in order to be successful in the position. 

  • Consider this: It’s highly unlikely that the right person for a customer service position will also be the right person for a data and analytics position.

• Communicate your needs - Finally, you need to be able to clearly communicate your needs in order to attract candidates with the right skills, qualifications, and personality traits for the job. That means starting with a well-rounded job description that outlines the role and responsibilities of the position.

  • Consider this: It’s important to be clear over clever in your job descriptions in order to attract the best, right candidates who’ll be a great fit!

3) “I’m scared my business won’t be able to financially support an employee for the long haul.”

Your finances are a vital part of the hiring process. Without a clear understanding of the financial commitment required to hire an employee, you could end up in hot water.

In addition to hourly wages or an annual salary, below are the mandatory financial obligations you’ll have as an employer:

• Payroll Taxes

  • Employer share of Federal Insurance Contributions Act (FICA) taxes

    • This tax pays for Social Security and Medicare benefits

  • Federal Unemployment Tax Act (FUTA) taxes

  • State Unemployment Tax Act (SUTA) taxes

  • Local income / wage taxes

• Workers’ Compensation (required in some but not all states)

• Other Insurance (varies by state)

There are also other optional benefits you might want to provide that will add to your overall costs, such as health insurance, retirement savings plans, and other fringe benefits and perks.

It’s important to take all these costs into consideration when hiring, so you can make sound financial decisions upfront and avoid any unpleasant situations later.

If you’d like a simple way to determine whether you’re financially ready for an employee, take our Payroll Challenge!

If you pass the Payroll Challenge, but still feel nervous about the financial commitment of hiring an employee, consider the following questions: 

• How will hiring help free up your own time? What would you do with this additional time?

• In what ways will hiring help allow you to take on more business and/or make more money?

• Is hiring help now essential to accommodate the growth that you’ve recently experienced? What does life/business look like if you don’t hire help?

• How else will hiring help add value to your life and business (don’t just focus on the monetary value, but also the quality of your life and the way in which your business operates)?

4) “What if the person I hire ends up NOT being a good fit?”

Unfortunately, we all make hiring mistakes at one time or another. However, nine times out of 10, a person ends up not being a good fit because of a bad hiring decision. That’s right – most bad hires are because of us, not the person we hired.

If we don't know what kind of help we need, are unable to communicate our needs clearly, or lack the interviewing skills necessary to identify red flags, we can find ourselves with a new hire that’s not the best fit. Make sure to follow the tips outlined in Common Fear #2 to increase your chances of hiring the right person, the first time.

5) “I’m worried that my business isn’t ready to bring someone onboard.”

Whenever I see people saying you should get all your systems in order, document a thousand processes, and have detailed SOPs before hiring it makes me cringe.⁠ Many incredible business owners who desperately need help, aren’t getting the help they need because of statements like these.

⁠While all of that will be important as you bring on new team members in the future, I’m here to tell you that none of it is necessary to bring on your FIRST employee.⁠

⁠Right now, you're probably drowning in work and just trying to keep your head above water. You might have a handful of things jotted down...somewhere, but you can't be sure they're even up to date. And you know you need help.

So how in the world are you supposed to get everything organized, documented, and systematized BEFORE hiring someone?⁠ It’s all too exhausting to even think about, right?

⁠⁠Please stop stressing that your business has to be in flawless working order and all your processes and procedures documented to perfection before hiring. Because that's the farthest thing from the truth. You can absolutely hire someone in your business to help you do this and you’ll both be stronger for it.

Final Thoughts

Taking the time to be thoughtful and plan ahead will greatly reduce your fear and stress when it comes to hiring, while increasing your chances of hiring the right person for your business.

If you’re ready to hire the help you need and deserve, get started today with our FREE 2-Minute Quiz: Who to hire first? And let’s find that dream team member together!

Authored by Ashley Cox, PHR, SHRM-CP