Your first hire matters more than you think – here’s how to get it right

Bringing your first employee on board is a major milestone for any small business, but it’s also one of the most consequential decisions you’ll make. In South Africa, the cost of a bad hire can be surprisingly steep. When you factor in job advertising, hours spent screening and interviewing, onboarding and training, wasted salary, and the expense of finding a replacement, a single unsuccessful hire can easily cost tens of thousands of rands.

With tight budgets and little margin for error, small business owners have a lot riding on their first hire. Get it right, and you create capacity, expertise and momentum. Get it wrong, and you risk wasted resources, eroded morale and a costly restart.

Here’s how to manage your first hire thoughtfully and practically.

1 Clearly define the role before advertising

 The foundation of any successful hire is a well-defined role. Too often, small business owners post vague job ads because they’re unsure exactly what they need. Before you list a position, write a job description that spells out the core responsibilities, required skills and expected outcomes. Consider the tasks you need help with and how success will be measured.

This clarity not only helps candidates understand the job but also guides you during interviews and onboarding. A clear role definition also makes it easier to assess cultural fit and expectations.

2 Plan for the real cost of hiring

Hiring costs extend way beyond salary. In South Africa, the cost to onboard a new employee can start around R30 000 once you account for screening, training and administrative time – and it increases significantly for more senior or specialised roles.

Factor in these costs upfront and ensure your business can absorb them without jeopardising operations. Consider whether you can begin with part-time support, a contractor or outsourced assistance while you build revenue and refine the role.

3 Recruit far and wide

 Rather than rely on a single job site or recruiter, use a mix of online platforms, referrals from your professional network, and social media. Referrals often yield higher-quality candidates faster and at a lower cost because existing contacts understand your business and can vouch for applicants.

Widening your reach increases the odds of finding someone who fits both the role and your company culture.

4 Have a well-structured interview process

 Rushing into hiring is one of the most common mistakes entrepreneurs make – often because they feel pressure to fill a gap quickly or don’t want to miss out on a candidate. To avoid this, use a consistent and structured interview process:

• Ask the same core questions to every candidate
• Combine technical questions with behavioural ones that reveal work habits and problem-solving ability
• Even if you’re a one-man band, involve another trusted associate to gain a second perspective
• Test real skills where possible, for example through short practical tasks

While it may be tempting to keep things informal when making your very first hire, structured interviews reduce bias, make comparison easier and reveal how candidates perform under realistic scenarios.

5 Check references and fit

It’s easy to put together an impressive CV especially with the use of generative AI, but real performance is what counts. Be sure to call every reference to ask about the candidate’s reliability, collaboration style and response to feedback. Ensure you also consider how the candidate might integrate with your team and adapt to your way of working.

When building a business from the ground up, hiring your first employee is a strategic investment, not a simple administrative task. Taking the time to get it right early can spare you costly missteps later and put your business on a far stronger footing as it begins to scale.

Jeremy Lang, Managing Director at Business Partners Limited

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

BUSINESS REPORT