Maria Peloponisiou~ 5 min Reading time | 02. Aug 2019
Employing staff can have a positive impact on your business. It increases productivity and the range of services your company can provide to its customers. However, although employees contribute to the growth of a business, they also present various responsibilities and challenges for business owners.
Finding the best person who can fit in your organization and contribute positively to it is a daunting task and should not be taken lightly. A lot of business owners struggle to employ new staff because they do not comprehend the process. There are guidelines you need to follow and factors to consider when hiring new staff. This will help you avoid unnecessary problems and mistakes that may cost you time and money.
What You Need to Know Before Employing Staff
Create a Job Description
Creating a compelling job description is crucial to attracting the most qualified job seekers for your job. A great job description will make your company stand out from the rest and also market your company.
The secret to crafting an effective job description is finding the right balance between providing enough details for candidates to understand their role while keeping the description concise. Therefore, ensure that you are clear about the kind of person you require, the skills they should have, and the amount you are willing to pay. During the hiring process, keep records of every candidate, taking into account their strengths, weaknesses, and interview notes that you will refer back when selecting your preferred applicant.
Carry Out Employment Checks
As an employer, it is essential to run checks on your new employee to see whether they have the right to work in the UK. Other employment checks include criminal checks with the Disclosure and Barring Service for jobs such as childcare. This check takes eight weeks to conduct; thus, it is crucial to keep this information in mind when employing new staff. Health checks are also essential if the job requires it, and if it is a legal requirement. Ensure you include information about the employment checks in the letter of offer and get consent before requesting a report from the applicant’s doctor.
Register Status as an Employer
You are required to register with HM Revenue and Customs (HMRC) once you become an employer. You must register even if you are the only manager and are employing yourself. The registration process should be done a month before paying your new employee for the first time. It takes five days to get a PAYE reference number.
Statement of Employment
As an employer, you must give your employee(s) an account of employment if their contract lasts more than a month. The report must be presented within 2 months of the start of employment. It includes the company’s name, employees’ name, job description, start date, work hours, salary, and any documentation you need from the worker.
The employment statement should also contain a mobility clause in case the employers move the business’ location. The clause means that employees can only move if the job is in places included in the clause and have the right to choose whether to go or not. Such a provision helps the employer avoid legal issues.
Get an Employer’s Liability Insurance
Your enterprise will need a liability cover as soon as you start employing new staff. The insurance cover will help you compensate employees when they get hurt or ill due to their work. Employers are required to have a minimum of £5 million of the liability cover from a legitimate insurance company. The government can inflict hefty fines of up to £2500 per day to employers who do not get the cover. Therefore, it is crucial to get a cover when you become an employer.
Set up a Workplace Pension
Employers should provide a pension scheme for all eligible staff. This staffs are between the age of 22 and the State Pension Age and earn over £10,000 annually. If a worker qualifies for a pension because of a change in their wages or age, you must enroll them for the pension scheme within 6 weeks of the day they satisfy criteria. If you do not, you could be charged a hefty fine.
Set up an Employee Contract
Once your desired applicant accepts a role in your firm, you will be legally required to set up an employee contract. The contract will outline their rights, duties and responsibilities, job title, and terms of employment. The terms may be agreed upon verbally, written in a contract or an employee’s handbook.
A written contract is an excellent way to define the job and prevent any confusion.
Determine Employees Wages
Setting salaries and wages for your staff is always a difficult thing to do. It is trickier if it is your first time doing it because you have no idea where to start. On one hand, you want to give the highest salary to get the best talent while on the other hand, you do not want to overpay.
When it comes to setting wages, remember this, you on no account want to pay more than the job is worth to you. So decide how much value does the person add to your company and the most you would be willing to pay should be their salary.
Communicate Your Performance Standards
You need to communicate the performance standards required from your employees so that they know what is expected of them. Also, let them know what you will give in return. This will create trust and mutual respect between you and your employees.
Ensure that your managers meet the employees to address any issues that arise to prevent them from escalating. You also need to have disciplinary measures set out in the employee handbook that will guide you on how to deal with disciplinary cases.
Your workers are your most valuable asset, therefore. Whether you employ one worker or more, it is essential to follow the steps above. Great people are hard to find, and the hiring process can be expensive and time-consuming. If you get it right, you might get the best people for the job. And if you take good care of your employees, they will stay longer and improve your business.