Hiring Your First Employee With Checklist

HIRING YOUR FIRST TEAM MEMBER?  Here's what to consider

Taking the leap from a solo business to bringing on your first employee is a big step—and a sign that your practice is growing! It’s an exciting milestone that also comes with a fair bit to think about.

From understanding your obligations as an employer to making sure your systems are ready to support a team, there’s more to it than just finding the right person. In this article, we’ll briefly walk you through the key considerations to help you feel confident and prepared as you grow your practice.

Before you start the process, it might be worthwhile having a chat with your accountant about the financials of employing staff.  We can help you look at the numbers to decide whether it’s worthwhile employing someone and help you to set up the payroll and bookkeeping and to understand your tax and super obligations.

Here’s a brief outline of key things to consider as you prepare to hire your first staff member.
 

1. Job Description

Start by clearly defining the role. Outline the duties and responsibilities, as well as the qualifications, experience, and attributes required. A well-written job description not only helps you attract the right candidates but also sets expectations from the start.  It’s also wise to set a 3 month probationary period for the new employee.  This will give you time to see if they are a good fit with your organisation.

2. Legal Requirements

Make sure you're across the legal obligations of hiring staff in a health organisation. Your employees may come under an Award.  You’ll also need to comply with the Fair Work Act, which outlines rules around minimum wages, working hours, leave, and termination.

3. Payroll

You’ll need to set up a payroll system that ensures employees are paid correctly and on time. Your payroll software must meet the ATO’s Single Touch Payroll (STP) reporting requirements. Accurate records of hours worked, leave taken, and pay rates are also essential.

4. Tax and Superannuation

As an employer, you’re responsible for:

• Withholding PAYG income tax from employee wages
  
• Paying compulsory superannuation contributions
  
• Lodging required reports to the ATO
  

It’s important to stay up to date with tax and super obligations to avoid penalties and ensure compliance.

5. Insurance

Protect your business and your employees by having the right insurance in place. At a minimum, you’ll need:

• Workers’ compensation insurance
  
• Public liability insurance
  

You may also need Professional indemnity insurance, if for example you have an allied health business. 

6. Employee Handbook

Prepare an employee handbook to outline your practice’s policies and procedures. This can include:

• Code of conduct
  
• Dress code
  
• Health and safety protocols
  
• Leave and time-off processes
  
  Having this information written down sets a professional tone and helps avoid misunderstandings.
  

7. Onboarding Process

A good onboarding process makes a big difference in how quickly your new employee settles in. Think about:

• Orientation to the practice
  
• Systems training (e.g. practice management software)
  
• Introduction to policies and procedures
  
• Setting expectations early
  

A well-structured onboarding process sets the tone for a supportive and efficient workplace.

8. Communication

Set up regular check-ins to provide support and gather feedback. Open, two-way communication helps your employee feel valued and gives you early insight into any issues that might need attention.

9. Employee Retention

Finally, think long-term. Strategies like offering professional development opportunities, fostering a positive team culture, and recognising your employee’s contributions can go a long way in building loyalty and reducing turnover.

Final Thoughts

Hiring your first employee is a big deal—but with careful planning, it can be a smooth and rewarding experience. Taking the time to get things right from the beginning will help you build a strong foundation as your practice grows.

It's important to consider these factors before hiring your first employee to ensure that you are fully prepared for the legal and financial responsibilities that come with being an employer.

✅ Checklist: Hiring Your First Employee

Employing your first team member is a big milestone—congratulations!To help make the process easier, here’s a handy checklist of key things to think about when hiring in a psychology or allied health setting.

📝 Job Description

• List duties and responsibilities
  
• Specify required qualifications and experience
  
• Identify desirable personal attributes
  
• Set clear expectations for hours, reporting lines, and pay range
  
• Have a 3 month probationary period
  

⚖️ Legal Requirements

• Check the Award 
  

• Review Fair Work obligations
  
  → Visit Fair Work website

💰 Payroll

• Choose ATO-compliant payroll software
  
  → About Single Touch Payroll (STP)
  
• Set up payslips and timesheet tracking
  
• Register for PAYG withholding with the ATO
  

🧾 Tax and Superannuation

• Understand PAYG tax obligations
  
• Set up superannuation contributions
  
  → Super guarantee info
  
• Super is to be paid on paydays
  

🛡 Insurance

• Organise workers' compensation insurance (mandatory)
  
• Organise public liability and
• Organise professional indemnity coverage, if required
• Review your current business insurance policies

📘 Employee Handbook

• Write clear policies for:
  
  • Code of conduct
    
  • Leave and time-off
    
  • Health and safety
    
  • Confidentiality
    
  • Dress code
    
• Provide a copy to all staff members
  

🚀 Onboarding Process

• Prepare orientation pack or welcome email
  
• Set up logins and email access
  
• Schedule initial training and shadowing
  
• Explain procedures, forms, and expectations
  

💬 Communication

• Schedule regular check-ins or supervision sessions
  
• Create space for open feedback
  
• Establish a clear process for raising concerns
  

🌱 Employee Retention

• Offer opportunities for CPD/professional development
  
• Encourage work-life balance and wellbeing
  
• Foster a supportive, inclusive workplace culture
  
• Recognise and reward achievements
  

✅ Final Tip

Hiring is a legal and financial commitment; chat with your accountant or HR advisor to make sure everything’s covered. Taking the time to do it right gives your practice a strong foundation.