Skip to content
Compliance Aug 04, 2025

Hiring Your First Employee? Don’t Skip This Step

Learn the crucial steps for hiring your first employee, including background checks, proper documentation, and setting clear expectations to protect your business.

So you’re ready to make your first hire. Congratulations — it’s a huge milestone for any small business. But before you roll out the welcome mat, take a pause. One skipped step could set your company back months, or worse — compromise everything you’ve built. 

When you’re hiring your first employee, you’re not just expanding your team. You’re entrusting someone with your business, your data, and your reputation. And without the right foundation, a bad hire can cost you tens of thousands of dollars, derail operations, or even trigger legal complications. 

Let’s talk about the critical step first-time employers can’t afford to skip: background screening - and what else you should do to protect your company. 

 

Why This One Step Matters So Much 

When you bring on your first team member, you’re doing more than filling a role. You're shaping the future of your business. In fact, the cost of a bad hire can run upwards of $15,000 according to the U.S. Department of Labor, and that doesn’t even account for lost time or reputation damage. 

With a single hire having such an outsized impact, you need to start strong — and screen smart. 

 

1. Run a Background Check

Don’t assume — verify. 

A resume and an interview won’t always reveal the full picture. Running a thorough background check can help you: 

  • Confirm identity and eligibility 
     
  • Uncover criminal records or red flags 
     
  • Catch aliases or mismatched documentation 
     

Pro Tip: Choose a provider that offers identity verification, national criminal database searches, and alias matching for a fuller picture. Avoid relying on DIY or Google-based vetting - it's risky and potentially non-compliant (FTC Fair Credit Reporting Act). 

 

2. Ask the Right Questions

Go beyond the resume. 

Hiring isn’t just about skills - it’s about values. When interviewing, consider: 

  • Culture-fit prompts that reflect your brand values 
     
  • Situational responses to ethical dilemmas 
     

For example: “Tell me about a time you made a mistake at work. How did you handle it?” reveals far more than a polished CV ever will. 

Check out this Forbes article on interview red flags to refine your approach. 

 

3. Document Everything

Your first hire deserves a professional process. 

From an offer letter to a W-9, keeping your documentation in order ensures you're legally protected and sets expectations from the start. 

Here’s what you should always document: 

  • Signed offer letter with outlined responsibilities 
     
  • W-9 or W-4 depending on contractor vs. employee 
     
  • Employee agreement or NDA 
     
  • Background screening consent and results 
     

Even if it’s “just one person,” treat it like the start of a 100-person team. It builds trust — and scales smartly. 

For a checklist, explore Bchex’s onboarding process tips

 

4. Set Expectations Clearly

Clarity builds trust. 

From day one, let your new hire know: 

  • What success looks like 
     
  • What behaviors or results are non-negotiable 
     
  • How performance will be measured 
     

Misaligned expectations lead to resentment, missteps, or turnover. A clearly defined employee handbook or welcome doc (even a short one) is invaluable. 

Need a template? The U.S. Small Business Administration (SBA) offers great starter resources for first-time employers. 

 

One Bad Hire Can Cost You — Don’t Risk It 

The cost of skipping a proper hiring process isn’t just financial. It can affect your brand, your client relationships, and your team culture before it even forms. 

Hiring your first employee should feel exciting - not risky. And with the right steps, it can be. 

If you're ready to screen smart and hire confidently, Bchex can help. From identity verification to daily monitoring tools, we’ve helped thousands of businesses build safer, stronger teams from day one. 

 

Ready to make your first hire count? 

Explore Bchex screening solutions for small businesses and set your team up for success. 

 

Latest Articles

Hiring Your First Employee? Don’t Skip This Step
Compliance

Hiring Your First Employee? Don’t Skip This Step

Learn the crucial steps for hiring your first employee, including background checks, proper documentation, and setting clear expectations t...

August 04, 2025

How to Choose the Right Type of Background Check for Your Organization
Background Checks

How to Choose the Right Type of Background Check for Your Organization

Learn how to choose the right background check for your organization based on industry, role sensitivity, and legal requirements. Ensure sa...

July 30, 2025

Hired and Hazardous: How Chex365 Could Have Uncovered Walter White’s Double Life
Continuous Monitoring

Hired and Hazardous: How Chex365 Could Have Uncovered Walter White’s Double Life

Continuous monitoring could have detected Walter White’s criminal activities early on. Learn how Chex365 can protect your organization from...

July 24, 2025