A first hire makes sense when you can define repeatable work, supervise it, and fund the full employment cost under a realistic cash forecast. Look beyond salary to payroll taxes, benefits, equipment, software, recruiting, training, paid leave, and the owner’s management time. Ask your CPA to help model the total cost and the timing of payroll obligations. Include a slower collection scenario rather than assuming every invoice will be paid on schedule.
Confirm that there is enough qualified work to support the role and that the employee will not be asked to practice beyond their competence. A backlog figure can mislead if projects have uncertain start dates, thin margins, or dependence on one client. Review each likely assignment: what work will the employee perform, who will check it, what milestones create billable work, and what happens if the project is delayed? Avoid hiring based only on a busy month.
Consider whether a part-time employee, specialist subcontractor, or teaming arrangement better fits temporary demand. Ask an attorney or CPA to explain worker classification and contract requirements for the arrangement you are considering. A subcontractor relationship still needs a clear scope, payment terms, insurance review, and responsibility for technical work.
Write a role description tied to actual tasks, reporting lines, required credentials, and the level of review the work needs. Plan the first weeks of onboarding, including firm procedures, file management, technical standards, and client communication. Decide who reviews the person’s work and how feedback will be given. If you are the only licensed engineer, be realistic about the time required to supervise while serving clients and running the business.
Track utilization and project margin as management measures, but do not use a target to justify rushed technical review or an unsafe workload. Reassess the hire after actual project assignments and collections provide evidence about the role’s fit.
This is general education, not legal, tax, investment, or engineering advice; licensed PE judgment and local codes govern.
