Hiring my first employee: the true cost above salary
The salary is the number you agree; it is nowhere near the number you pay. Hiring a first employee costs a studio far more than the headline figure, and the gap catches owners out.
What sits on top of salary
Employer National Insurance, the minimum pension contribution, holiday that has to be covered, and the software, desk and admin of having staff at all. As a rough rule, budget well above the salary before you have paid for a single laptop. A 30,000 pound salary is not a 30,000 pound decision.
The costs that are easy to miss
The non-cash ones. Your own time spent managing, the drop in your billable hours while you train someone, and the risk that the first hire is not the right one. Studios often hire when they are drowning and least able to train well, which is the worst possible moment to do it. Work out the true monthly cost, and the billable hours the hire has to cover, before you advertise, not after the first payroll run gives you a shock.
The government sets out what employing someone involves, including the duties people forget until they apply.
Written by Isla Fraser. General business information, not financial advice; figures current for 2026.…
