Business

Hiring the First Employee

Hiring the first employee is an important step for the entrepreneur and it is also a time when many questions will be asked about personnel management: what are the formalities for hiring an employee? What are the possible contracts? How much will hiring an employee cost me? The purpose of this article as Austin Staffing is therefore to inform you about the managing of the staff and to offer you several information that may be useful to you.

Hiring phase of your first employee, you will have to ask yourself the following questions:

What is the profile of the employee to be recruited (diploma, experience, geographic mobility, etc.)? By what means will I manage to find this profile (more info in our article recruiting an employee)? What can I offer him in terms of remuneration and employment contract (CDI or CDD in particular)?

What is the formality to follow to hire an employee?

How to properly draft the employment contract and who will take care of the payroll management (the company or a service provider, such as an accountant for example)?

The different contracts for the first employee

For the hiring of the first employee, you will have the possibility to choose between several employment contracts and in particular the CDD and the CDI. You can get more information about the first contract of these two contracts in our article on CDD.

To choose between these two possibilities, here is what to remember:

The CDI is, as its name suggests, a hiring for an indefinite period and therefore constitutes a long-term commitment, The fixed-term contract allows the young company to employ its employee for a limited period: the cost that it bears is thus limited in time which is reassuring for a young company, Offering a CDD can block recruitment and the person may choose another employer who will offer them a CDI, If you employ someone on a fixed-term contract, they can terminate their contract at any time if they receive a permanent contract offer. An entrepreneur has financial security in the CDD rather than in the CDI because his financial commitment is limited in time.

The cost to be borne for the hiring of the first employee

Another essential point is the budgeting of the overall cost that will be incurred considering the hiring of your first employee. To establish your estimates, you can use the following calculation method:

Total monthly cost = (monthly net salary * 1.65). This formula is not exact to the nearest euro but it allows you to budget carefully the cost that will have to be borne each month following the hiring of the first employee. On this monthly total cost, it will be necessary, if necessary, to charge all the social assistance from which you can benefit (reduction for young, young innovative company, ZFU).

Formalism linked to the hiring of the first employee

The hiring by a company of its first employee requires it in particular to carry out these formalities:

  • Register the business with social organizations,
  • Make a prior declaration of employment,
  • Inform the labor inspectorate of this first hiring,
  • Open a single personnel register
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Published by
Barry Lachey

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