You have just hired your first employee. What now?

Tasks and responsibilities with hiring as a new business owner.

As your small business grows, you will need to hire employees. That’s definitely cause for celebration, but it also comes with its own challenges. How do you transition from a business of one to a team of two or more?

The team at MKS has put together some advice on where to focus as you take on the role and responsibilities of an employer. After all, we started in the same position as you did.


1: Think about future cost saving.

Business owners are always looking for ways to optimise the return on any investment they make in their business. This thriftiness is often the difference between a profitable month and one where they’re forced to take a look back at what could have been done better.

The downside is that focusing on cost savings means you might overlook opportunities to be more efficient, even if the solution will cost money. Finding an effective solution for managing operations, like payroll, may require an initial investment, but it is sure to save you money down the road.


2: Avoid penalties from incorrect payroll management.

One in three businesses is penalised for mismanagement of payroll, according to the Australian Payroll Association. Don’t be part of that 33 percent. Business owners spend up to two weeks of their year on purely administrative tasks related to back-office and payroll. Why not automate this process, with programs such as Xero. Which makes payroll easier and more efficient, giving you more time to spend on your business instead of funding your business. Contact the team at MKS Group to learn more about the benefits of Xero and how to get started on  9374 8400.


3: Provide a first-class employee experience

Paying your employees is the absolute bare minimum in terms of providing them with an experience that makes them feel valued. As an employer–and more importantly, a leader–you want to make sure you’re not cutting any corners for your team members when it comes to their livelihood.

Employees expect to be paid correctly, and on time–every time. Period. Through automation, you can make sure that you deliver a consistent experience for your team, even if you are away, in the middle of a busy season, or just plain forgetful.

Finally, having an accessible record for your employees makes you look professional and creates a seamless experience for them when they want to check their pay.


4: Collaborate

Once you’ve hired your first employee, you need to be open to trusting and collaborating with those you hire.  If your company is scaling fast, your role as owner may change often and in fundamental ways. This means taking a hard and honest look at what the tasks are in the business that only you can do, and what are areas of the business that can be done by your new team members.

Molly Graham, the COO of Quip, calls this process “giving away your Legos.” You hired your new team members for a reason, and it’s not so they can sit back and watch you continue to do everything.


5: Bet on change

Employment and tax laws are subject to change, and when they do, it will have an impact on how you manage your payroll operations. If you’re using a payroll provider, make sure you choose one that’s consistently doing research and compliance testing, so you don’t have to spend your free time studying up on the tax and payroll regulations or laws.

Xero Payroll simplifies compliance with the ATO to ensure accuracy. It is an effortless way to pay employees, contractors, and yourself, and it’s built specifically for the needs of small to medium business owners. Xero adapts to change the same way you should.



Hiring your first employee is a major milestone. It means your business is doing well, and it also means you’re going to grow your skills as a leader. Make sure you’re set up for success, and be sure to enjoy the ride.