Hiring your first employee is a big step towards growing your business. While you might have worked with freelancers and subcontractors in the past, employing a full or part-time member of staff can allow you to scale your business more quickly and increase your revenue. However, there are dangers to beware of.
To ensure you get things right, take a look at these top five tips for hiring your first employee:
Understand Your Duties
As an employer, you’ll need to fulfil certain duties and obligations. Fortunately, employment law consulting services can help you to establish what you need to do to achieve compliance with relevant regulations. From drafting a contract of employment to providing a safe working environment, there are a myriad of legal issues that you’ll need to address before you hire someone to work for you.
Reassess the Job Description
The job description that instigates the recruitment process details what your employee will do on a day-to-day basis, so be sure to get it right! If you expect an employee to do more than their job description, they may have a justified cause for complaint. By really thinking about the role and constructing a detailed job description from the outset, you can ensure that both you and your future employee are clear about what the role involves.
Take Out Insurance
Business insurance can be a critical way of safeguarding your organisation but, as an employer, you may need additional policies in place. You’ll usually be required to take out employers’ liability insurance in case a member of staff is injured at work, for example. Although this type of insurance is generally available relatively cheaply, it is a requirement in most instances and can save your business from bankruptcy if an employee does make a claim against you in the future.
Establish Your Management Style
If you aren’t used to managing people, it can take some time to find your own style. However, your approach to management will set the tone for future employees, so think about how you can get the best out of your staff. By creating a welcoming and collaborative working environment and boosting morale, for example, you can ensure that your workplace is a happy and productive place to be.
Setup Payment Processes
When you’re paying staff, setting up PAYE services is usually the most straightforward option. After registering as an employer with HMRC, you’ll need to deduct income tax and National Insurance contributions from an employee’s salary, as well as submitting data in a timely manner. However, small businesses can often benefit from outsourcing payroll to established companies, as this can reduce costs and save you time.
Becoming an Employer
There are numerous challenges to overcome when you’re running a business and hiring your first employee is just one of them. Providing you get the process right, becoming an employer can be an effective way to take your business to the next level. By researching your new role and seeking advice when necessary, you can ensure that the process is a positive one for both you and your business.