The HR Checklist for Startups: What You Need Before Hiring Your First Employee

INTRODUCTION

Hiring your first employee is a milestone. But it’s also a liability if not handled correctly. Many startup founders leap into hiring without laying the proper HR foundation, exposing themselves to compliance risks, performance issues, and high turnover rates.

This guide walks you through a practical, startup-friendly HR checklist to help you hire smart, stay compliant, and set your team up for long-term success. 

SECTION 1: Why HR Matters, Even If You’re a Team of Two

Think you don’t need HR because you’re small? Think again.

HR is more than policies. It’s the structure that supports how your business:

• Complies with the law
• Sets expectations
• Protects employees (and founders)
• Builds culture from day one

Waiting to “do HR later” often means retrofitting damage. Instead, build it into your startup DNA early. It’s cheaper and more sustainable.

SECTION 2: The HR Checklist for Startups Before Hiring Their First Employee

Legal and Compliance Setup

1. Register Your Business & Get a Tax Identification Number (TIN)
   You’ll need this to legally pay salaries and report taxes.
   
2. Understand Local Labor Laws
   Learn country/state-specific employment laws, including minimum wage, work hours, termination clauses, and employee rights. Speak with a local HR consultant if needed.
   
3. Draft a Compliant Employment Contract
   Include job title, scope of work, salary, benefits, probation, and termination policies. It’s a legal document, don’t wing it.
   
4. Set Up Payroll and Statutory Deductions
   Ensure you can deduct and remit pension, tax, health insurance, or other contributions as required in your region.
   
5. Create an Employee Handbook or HR Policy Document
   Even a simple 3-page handbook helps define your work culture, code of conduct, grievance process, leave policies, and values.
   

 Hiring & Recruitment Essentials

6. Define the Role Clearly
   Write a job description that details responsibilities, qualifications, expectations, and reporting lines.
   
7. Build a Simple Hiring Process
   Structure your hiring in clear stages: application, screening, interview, offer. Decide how you’ll assess soft skills and culture fit, not just hard skills.
   
8. Plan for Fair & Legal Interviewing
   Avoid biased or illegal questions. Use consistent questions for every candidate to ensure fairness.
   
9. Prepare a Clear Offer Letter Template
   Include the job title, salary, benefits, start date, and probation period. Keep it professional and concise.
   

 Onboarding & Integration

10. Create an Onboarding Checklist
    Prepare tools access, welcome emails, intro meetings, and basic training, even if informal.
    
11. Assign a Point of Contact or “Buddy”
    Someone the new hire can reach out to with questions. In tiny teams, this might be the founder.
    
12. Clarify Reporting Lines and KPIs from Day One
    Don’t leave performance expectations to assumption. Be clear about deliverables and communication rhythm.
    

 HR Systems & Tools

13. Choose a Basic HR Tool or Spreadsheet
    Use software like Zoho People, Deel, or just a structured Google Sheet to track attendance, time-off, and reviews.
    
14. Set Up a File Management System
    Store signed contracts, CVs, performance notes, and HR documentation in a secure cloud folder.
    
15. Create a Feedback & Performance Framework
    Set a routine for check-ins. You don’t need a corporate performance system; a monthly one-on-one and quarterly review works fine.
    

SECTION 3: Common Mistakes to Avoid When Hiring Your First Employee

• Hiring without a documented job role
• Paying under the table or without proper tax setup
• Failing to issue a contract
• Ignoring labor laws or health contributions
• Skipping onboarding, which leads to confusion and disengagement
• Assuming “we’ll fix the HR stuff later”

CONCLUSION: Start Strong, Grow Smart

You don’t need a fully staffed HR department  but you do need HR structure. Starting with this checklist helps you:

• Stay legally compliant
• Attract the right people
• Build credibility as a founder
• Lay the groundwork for a performance-driven culture

A little structure now prevents chaos later

Need personalized help?
Book a free 20-minute HR clarity call by emailing hello@elizabethmaddeux.com or visiting elizabethmaddeux.com
Let’s talk about how to build a legally sound, people-first foundation tailored to your startup.