Hiring your first employee in the trades

There comes a point where you are turning work away, working every evening, or both. The answer is usually a second pair of hands. The first hire is also the biggest change your business will go through, because you stop being the business and start running one.

Know what you are hiring for

Before you write an advert, decide what the person will actually do. A helper who carries, prepares and cleans up is a different hire from a qualified technician who can run jobs alone.

A helper is easier to find and costs less, but only frees up part of your time. A qualified tech can double what you can take on, but costs more and is harder to find. Many owners start with a helper they can train.

Employee or contractor

This is a legal question, not a preference. In general, if you set the hours, provide the tools and direct how the work is done, the person is an employee, whatever you call them. Treating an employee as a contractor can lead to back taxes and penalties.

If you are unsure, check your state's rules or ask an accountant before the first day.

Get the paperwork right first

Before they start, you will generally need to:

Register as an employer with the IRS and your state
Verify they can work in the United States
Set up payroll and tax withholding
Get workers' compensation insurance, which most states require
Check that your liability insurance covers employees on jobs
Confirm any licensing rules for unlicensed workers in your trade

It takes a little time once. Doing it after something goes wrong is far more expensive.

Pay fairly and clearly

Find out what the role pays locally and pay at or above it. In the trades, good people leave for a small raise elsewhere, and replacing someone costs much more than the difference.

Be clear about overtime, travel time between jobs, and whether time at the supply house counts. Most disputes with new hires are about pay that was never explained.

The first month

Pair them with you on every job for the first weeks
Write down how you do the common jobs, so the standard does not depend on memory
Give them a phone or app with the schedule, job notes and customer details
Review each week what went well and what did not

Your customers hired you. Make sure they hear about the new person before that person turns up, and that the standard of work does not change.

Before you hire

Decide whether you need a helper or a technician
Confirm they are an employee, not a contractor
Register, insure and set up payroll before day one
Agree pay, hours and overtime in writing
Plan the first month of training