Your First Employee: What to Know Before You Hire

Hiring tips

Hiring your first employee is a big step. It feels like proof that your business is growing. But it also comes with risks. If you are not careful, you can lose money fast. Let’s go through the key things you need to think about before you bring someone onto the payroll.

First, know the real cost. Paying someone is not just about handing them an hourly wage. You also have to cover taxes, insurance, and sometimes equipment or training. For example, if you pay a worker 20 dollars an hour, the real cost to your business may be closer to 25 or even 30 dollars once you add everything up. Many contractors forget about these extras. That mistake can drain your profit.

Second, think about how steady your work is. Can you keep this person busy week after week? If you hire someone and then do not have enough work, you may end up paying for downtime. That can put you in a hole. Sometimes it is better to use subcontractors until you know you can keep a full-time worker busy.

Third, look at how you will track their time and costs. This is where ProfitDig can help. When you add employees into the system, you can attach their actual costs to your bids and your jobs. That way you always know what labor is really costing you. Without that knowledge, it is easy to think you are making money when you are not.

Fourth, do not forget about safety. A worker who gets hurt on your job is a serious problem. You need to carry the right insurance. You also need to train them on safe practices. It may not feel urgent, but skipping safety is a gamble that can ruin your business.

Finally, think about the long game. A good employee is more than just an extra set of hands. The right person can become a foreman, a leader, or even a partner one day. Treat your first hire as an investment. Pay them fairly. Train them well. And make sure they know you value their work.

Hiring your first employee can be scary. But with the right planning and the right tools, you can make it a turning point for your business. ProfitDig helps you run the numbers, build accurate bids, and keep track of costs. That way your first hire is a step forward, not a step backward.