So you have gotten funding, what next? Most likely you want to start recruiting and hiring new employees. Hiring is a delicate process that has different components and getting it right is vital to your business success.
Every employee you add into your company can either make you succeed or fail. Aside from qualifications and competencies these are some of the things you need to consider when hiring a new employee;
- Consultants or Employees? As you recruit people into your enterprise it is important to consider whether you need them to be employees or you can have them as independent contractors/consultants. For an early stage start up, consultants may be easier and cheaper to manage because you do not have to pay taxes or health and social security benefits and you have less legal liability in case of a performance dispute with your hire. However, if you want people who dedicate 8 hours a day at your office and are excited to fulfill all the statutory obligations, employees are the way to go.
- Have a Non Disclosure Agreement – Either as part of the Employment Contract or as a separate agreement, a Non-Disclosure Agreement is important because it protects your business secrets. Every successful business has its trade secrets and you need them protected and not disclosed to your competitors.
- Have a Non-Compete Agreement – Either as part of the Employment Contract or as a separate Contract it is important to ensure that your employee does not steal your idea/strategy and set up a separate business to compete you. You can do this by setting up a non compete contract where the employee agrees not to compete with your Company after the employment period is over.