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Hiring Your First Employee? Here’s Everything You Need to Know!
Hiring your first employee is an exciting milestone, it means your business is growing and you’re ready to take the next step. But it can also feel overwhelming. Contracts, payroll, policies, compliance… where do you even start?
That’s exactly why we created our First Employees Pack - a complete, step-by-step toolkit to help small businesses hire confidently, legally and stress-free.
Why you need a First Employee Pack
Taking on your first employee comes with legal obligations and responsibilities as an employer. Miss a step and you could risk fines, disputes or delays. Our pack gives you everything you need in one place, so you don’t have to piece it all together yourself. These are all tailored to your company branding and include input from you on your culture and values.
What’s included in the First Employee Pack?
Contract Templates
Legally sound, customisable and ready to use. These will include employment contracts, contractor agreements, apprenticeship agreements and more dependant on the type of workforce you have.
Employee Handbook / Policies
Managing holiday, sickness absence, lateness, managing probation periods, disciplinary and misconduct - all clearly set out.
New Starter Forms & Checklists
Right-to-work checks, emergency contact forms, GDPR compliance and more.
Payroll & PAYE Setup Guidance
Step-by-step support for registering as an employer and paying employees correctly including basic information around pensions eligibility.
Onboarding Checklist
Make your new employee’s first day professional, smooth and welcoming. This will also include tips on how to engage with new starters even before their first day.
Why small businesses trust us
We work with small and growing businesses every day. We know your time is limited, budgets are tight and doing the “HR” within the business can feel overwhelming. Our First Employees Pack is designed to take away the guesswork and give you confidence from day one as an employer.
Ready to Hire With Confidence?
Whether you're hiring your first admin assistant, technician, barista, or manager, Home of HR are here to make sure you’re set up the right way so get in touch today and see how we can support you get it all in place.
Probation Periods: Set Expectations, Avoid Problems
Hiring your first employee is exciting, but probation periods are where the real groundwork for success happens. At Home of HR, we help UK small businesses set clear expectations, provide structured feedback, and document performance effectively - so your new hires thrive and your business stays compliant.
Why Probation Periods Matter for Small Businesses
Did you know that 1 in 5 new hires fail their probation period? Often, it’s not because the employee is a poor fit, but because expectations weren’t clearly communicated from the start.
A well-structured probation period:
Gives employees clarity on their role and responsibilities
Helps managers monitor performance and provide constructive feedback
Protects your business legally if you need to terminate employment
Structuring a Probation Period
Here’s how to set up a clear and fair probation period:
Define the Length
Typically 3-6 months for small businesses (although note this will be changing in 2027 with proposed government statutory probationary periods)
Consider role complexity and business size
Set Clear Goals and KPIs
Outline what success looks like in the role
Include measurable targets and behavioural expectations
Schedule Regular Check-Ins
Weekly or monthly review meetings
Discuss progress, challenges, and provide support
Document Everything
Keep notes of all meetings, feedback, and agreements
Documentation is essential if probation doesn’t work out
Giving Feedback During Probation
Feedback should be:
Specific: Focus on behaviour or outcomes, not personality
Timely: Address issues as they arise, don’t wait until the end
Supportive: Offer guidance and resources to help employees improve
Avoiding Common Mistakes
Many small businesses make these probation errors:
Vague expectations - employees don’t know what’s expected
Skipping feedback - no opportunity to correct performance issues
Poor documentation - leaves the business exposed to legal risk
At Home of HR, we provide templates and guidance to make your probation periods structured, fair, and compliant.
Probation periods are your opportunity to set up new hires for success, and protect your business. By setting clear expectations, giving structured feedback, and documenting reviews, you reduce risk and improve retention.
Tip from Home of HR: Implementing a strong probation process isn’t just legal protection - it’s a roadmap for high-performing teams.
Ready to get your probation periods right? Home of HR’s First Employee Pack includes:
Probation templates
Feedback forms
Performance review checklists
Contact us today to get started!
When Is It Time for a Small Business to Outsource HR?
The truth is simple: if your business has more than one employee, you already have HR responsibilities. From the moment you hire your first team member, you’re legally required to handle things like payroll, contracts, compliance, and workplace policies.
That’s why, for many small businesses, the best time to outsource HR is from the get-go. Partnering with an HR consultancy ensures you’re compliant, your employees are supported, and you’re free to focus on growing your business.
What Does Outsourcing HR Mean for a Small Business?
Outsourcing HR means working with an HR consultancy to manage some or all of your HR tasks, such as:
Writing contracts & handbooks
Setting up payroll & benefits
Ensuring compliance with employment laws
Recruiting and onboarding new hires
Managing leave and absence policies
Supporting employee relations
For a small business, it’s a cost-effective way to access professional HR support without the expense of a full-time HR hire.
Signs It’s Time to Outsource HR
Here’s how you know your business is ready (spoiler: it might be sooner than you think):
1. You’ve Just Hired Your First Employee
Even with only one employee, you need the right contracts, policies, and payroll systems in place. An outsourced HR provider sets you up correctly from day one.
2. HR tasks are eating into your time
Small business owners wear many hats. If paperwork, payroll, or compliance checks are pulling you away from running your business, outsourcing HR gives you back valuable time.
3. You’re unsure about employment law
Rules around holiday pay, sick leave, and employee rights can be confusing. HR consultants keep you compliant and reduce the risk of costly mistakes.
4. Recruitment feels overwhelming
Finding and onboarding the right people takes time. An outsourced HR partner streamlines the process so you can grow your team faster.
5. You can’t justify a full-time HR hire
Most small businesses don’t need an in-house HR manager. Outsourcing provides expert support exactly when you need it—without the overhead.
Benefits of outsourcing HR early
Get it right from the start - Avoid compliance mistakes and set up solid foundations.
Save time & stress - Focus on your business while HR experts handle the details.
Affordable - Pay only for the support you need, not a full salary.
Scalable - Your HR support grows as your business grows.
Happier employees - Create a professional, supportive workplace from day one.
Final Thoughts
If your small business has more than one employee, it’s never too early to consider outsourcing HR. In fact, the sooner you put the right systems and support in place, the easier it is to avoid costly mistakes later.
Home of HR specialises in helping small businesses set up HR the right way - from the very first hire. Contact us today to see how we can make HR simple, affordable, and stress-free.
Mental Health Awareness Month: 5 practical ways to support your team without breaking the budget
October marks Mental Health Awareness Month - a time to reflect on how we’re supporting the people behind our business.
For many small businesses, the challenge isn’t about wanting to prioritise wellbeing, it’s knowing how to do it in a practical, affordable way. The good news? Supporting your team’s mental health doesn’t have to mean costly programmes or corporate wellness apps. It starts with small, intentional actions that show your people you care.
Here are five low-cost ways to make a real difference:
1. Normalise conversations about mental health
Creating a culture where people can speak openly about stress or burnout starts at the top.
Encourage managers and business owners to check in with their teams regularly - not just about workload, but how they’re feeling.
A simple “how are you doing this week?” can go a long way.
Tip: Make it part of your 1:1 meetings or morning huddles. You don’t need a policy to show empathy.
2. Offer flexible breaks and working hours
Mental wellbeing thrives on flexibility.
Allowing staff to adjust their hours for school runs, medical appointments, or even a lunchtime walk helps reduce stress and boost productivity.
3. Train managers to spot early signs of burnout
Managers are often the first to notice when someone’s struggling — but they don’t always know what to do next.
Short, focused training sessions can help managers identify red flags like withdrawal, irritability, or drops in performance.
4. Celebrate wins and recognise effort
Recognition boosts wellbeing - it reminds people they’re seen and valued.
You don’t need expensive reward schemes. Try handwritten thank-you notes, team shoutouts, or celebrating milestones (even small ones) in your group chat or noticeboard.
5. Signpost to support
Make sure employees know where to go if they need help.
Even if you don’t have an Employee Assistance Programme (EAP), you can share trusted resources like:
Mind UK
Mental Health at Work
Tip: Add these to your staff handbook, internal newsletter, or even your staff room noticeboard.
Small steps can have a big impact. Supporting mental health isn’t about having a big budget - it’s about creating a culture of care, consistency, and compassion.
Ready to build wellbeing into your HR strategy?
We help small businesses create simple, sustainable ways to support their teams, from wellbeing audits to manager training.