Hiring Your First Employee

Are you planning to hire your first employee to cope with the development of your activity?

Succeeding in your first recruitment is a very important issue for the future of your company. Prepare for your first job step by step, with assistance if necessary. What steps? What employment assistance? What cost? Answers to all your questions below.

The stages of recruitment

1) Define the position:
Define precisely the position that will be recruited: the title of the position, the missions, the associated responsibilities, the possible evolutions…

2) Define the desired profile:
Based on the job description, determine the skills required to fill it: training, specific skills, experience, personal qualities, mobility, etc.

3) Choose the type of employment contract:
There are several types of employment contract: fixed-term contract (CDD), open-ended contract (CDI), professionalization contract, etc.

The type of employment contract you choose and its content must comply with labor law in the local market you’re operating in. 

4) Write an ad:
First selection filter, your ad must precisely describe the position and the profile sought to target the best potential candidates in line with the needs of the position.

The content of advertisements is regulated by law. You must ensure that you do not mention any discriminating criteria (age, sex, etc.).

5) Interviews:
Based on the CVs and cover letters that you have analyzed, you will select a certain number of candidates for an interview. This interview should allow you to validate the professional skills of the candidate and measure his motivation.

6) Hiring:
To find out about the administrative formalities related to hiring, consult the website www.service-public.fr .

7) The integration of your employee
For your employee to be operational as soon as he is hired, you must have prepared his integration and make yourself available on his arrival and the time of taking charge of his position. Indeed, you will have to train your employee (operation of the company, approach to your customers, transmission of know-how, etc.)

8) The trial period
The trial period should allow you to assess the skills of your employee and the latter to assess whether the position is suitable for him. The trial period is not compulsory and its maximum duration is set by the Labor Code and collective agreements.

During the trial period, the employer or the employee have the possibility of breaking the employment contract without it being necessary to justify the reason (there are however cases of abusive termination of the trial period) . A notice period must be respected by each of the parties.

Recruitment agency or internal recruitment?

You can call on a recruitment firm to assist you in your recruitment:

  • definition of the position and profile;
  • writing advertisements;
  • selection of candidates (tests, interviews, etc.).

A recruitment firm can save you a lot of time in your efforts by selecting the two or three best candidates. In the end, it is still you who will have the last word!

The cost of a recruitment firm is generally between 10 and 20% of the gross annual salary of the employee hired. This cost may seem high, but keep in mind that processing 50 to 100 applications yourself is no small feat (analyzing CVs and cover letters, interviewing candidates, etc.).

Estimating the overall cost of hiring

If the arrival of an employee in your company is in line with the development of your turnover, it is also a cost that should not weigh on the profitability of your activity. It is therefore important to estimate the overall cost. A distinction must be made between the direct and indirect costs of an employee.

Direct costs

The main direct costs are:

1) gross salary: it is made up of net salary and employee contributions;

2) employer’s contributions: these are calculated on the basis of the gross salary. These are contributions for health insurance, family allowances, old-age insurance, accidents at work, unemployment insurance, supplementary pensions, professional training as well as any taxes on salaries and apprenticeships.

As an indication and excluding specific reductions and exemptions, the average rate of employers’ contributions is around 40 to 45% (this rate varies according to the number of employees and the level of employee compensation).

Depending on the company, the following can also be included in the direct costs:

  • benefits in kind (food, accommodation);
  • gratuities: thirteenth month, vacation bonus, etc.;
  • interest and participation.

Indirect costs

Indirect costs consist in particular of the resources that the employee will need to carry out his work (materials, supplies, equipment).

 Your first recruitment criterion must however remain the suitability of the candidate for the position. In the end, nothing costs less than the right person in the right place in your company!

Eleanore Frinqois

Eleanore Frinqois, Lead Editor at BusinessGrowthCoaching.co.uk is a business leader with over 30 years in both start-up and enterprise level organisations. Previously Operations Directer at a £1.8BN media group, alongside setting-up and later selling 3 digital brands - Eleanore has expertise across all aspects of business growth.

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