Source: @dylandgillis
Taking on staff for the first time is an exciting milestone in any business. It means that your company is in demand, and it is a great opportunity for you to expand. Before you set about employing people though, there are a few things you need to know.
Your Business Need
Firstly, you will need to consider the needs of your business and take on staff accordingly. Consider why you are busy and whether the increase in your business is sustainable. For example, it may be that you are busier at certain times of the year, therefore it could be better to take on seasonal rather than permanent staff. You may have won a big new contract that has increased business but is it ongoing or will it have an end date. You may need to think about whether you have enough work to sustain your new employees permanently.
Job Role
Think about what you want your new employees to do. There will be aspects of the business that you will be happy to hand over but there may be other parts that you want to run yourself, especially if it is still early days. Having clearly defined job roles makes the interviewing process easier as it means that you can invite applicants with the most experience and skills to do the job. It also means that employees won’t get disgruntled by being expected to perform tasks that are totally different from the ones they were hired for.
Cost
To work out the cost of hiring staff you should research similar positions that are being advertised and see what other companies are paying. This gives you an idea of the salary expectations for the role. You should aim to set your new employees’ salary at a similar level. Offer too little and you won’t get a lot of applicants, or certainly not good quality ones. Pay too much and you will get inundated with applicants who are looking at the pay scale rather than considering their transferable skills and they might not be the best people for the job.
An employee’s remuneration package is about more than just the pay though. Often job hunters will take a slightly lower salary if the company benefits are better than elsewhere. It is important to factor in the total cost of hiring an employee, not just the salary. Legal requirements include things such as a pension, holiday allowance, and employer national insurance contributions.
Background Checks
You may think you have found someone who is a perfect fit for the job, but people don’t always tell the truth during interviews. It may be that they have embellished their skills to land the position or there may be things about their job history that they are not telling you. Make sure you take references and follow these up. Other checks may be necessary such as DBS checks if your company is involved with children, financial services, or other specialist areas. Don’t skip this stage or it could cause you problems once they start the job.
Employee Rights
Research the legal aspects of hiring employees so that you know what their rights are as well as your own. Then draw up a contract that outlines what is expected of you both. You should take advice on employment contracts so that you don’t fall foul of the law as this can leave you open to being sued by an unhappy employee. Employment tribunals can cost a lot of money and may even lead to the failure of your business so it is imperative to get this right.
Health and Safety
Health and safety become more important as you start to hire staff. When you are a one-person company working from your kitchen table this could be the furthest thing from your mind. However, once you become an employer you are responsible for the health and safety of the people you hire. You will need to ensure that they are working in temperate conditions, have computer equipment and furniture that is suitable for their needs, and you have assessed and minimised the risk for trips and falls. If an injury caused by a workplace accident happens, the legal and financial repercussions can be dire. An affected staff member will often call a workers’ compensation lawyer. Unfortunately, many companies have lived the reality of paying huge compensation to affected parties. Your business must ensure compliance to avoid such issues. Doing this will be in your company’s best interest.
Taking on employees for the first time is not something you should do without carrying out your due diligence. That way you can be sure you are making the right decisions.