Monday, 20 September 2010

Taking on staff for the first time..........

It is a fact that this is one of the biggest decisions you will have to take as the owner of a small business. Below we have detailed some key points for you to consider before adding people to work in your business.

Define what you want them to do - employing someone might not be just a way of getting an extra pair of hands: think about how you would like your organisation structured, and what new skills you might want to introduce to your business to help its growth and development.

What hours do you need them to do – there are options: full-time, part-time, short-term, or freelance?

Don’t just think you need to employ someone on a full-time basis, you could employ someone on a part-time basis to save paying a full-time salary, just for the duration of a project or a specific piece of work, or you could bring in specialists on a freelance basis.

You get what you pay for - You need to pay your staff at least the national minimum wage but remember a cheap member of staff can be more expensive in the long run.

The other things to consider –

1. You must, by law, have employer’s liability insurance in place.

2. You will need to operate a payroll

3. Freelancers are responsible for their own tax and national insurance contributions but if you are considering taking on someone on a freelance basis you are strongly advised to check that they would be viewed as freelancers in the eyes of HMRC.

4. Managing your staff, setting expectations and avoiding disputes – you are taking a risk by introducing a stranger into your business and mistakes can be time consuming and costly. So please ensure

 Have an agreed job description or role definition from the outset

 Set clear expectations on the duties, the level of performance and how it will be measured

 Agree on a probation period of a few months before confirming their employment

 Be clear on what is, and is not, acceptable behaviour

 Have clear and written guidelines on use of company property and resources, specifically including personal telephone internet and email usage.

 Have a clear and written grievance and disciplinary procedure



Taking on a member of staff is not something you can do lightly – but with the right person in the right role your business can flourish as it releases the business owner to spend more time on doing what they do best. If you want to discuss how to employ staff or whether this move is right for your business please call Richard Dare on 0845 2576835

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