As your business begins to grow, you will find it increasingly difficult to do all the work on your own.
Therefore to facilitate effective rapid business growth, it may be necessary to bring in additional staff to help. Thus if your business growth model is going to employ staff, you will need to set up a proper recruitment and selection framework.
Now you have to understand that this is an area of business management that needs careful consideration.
It can be a minefield and if you do not pay serious attention a lot of things can go wrong. Staff recruitment is littered with legislation and if you are careless you may find yourself in law courts for breaches.
If you recruit the wrong people who do not add value to your business, you may find your business negatively affected.
It is therefore of utmost importance that you take extreme caution when you decide to recruit staff into your business.
Let me discuss with you some of the issues you will need to consider when recruiting employees for your business.
One of the first considerations that you will need to make when recruiting staff is whether or not you can afford to employ them.
Will the value they bring to the business exceed their cost? Don’t employ staff unless it is absolutely necessary that you do so. Never take on staff if you cannot afford them, the consequences can be dire.
You can`t have people working for you when your business is unable to pay them. That is both unethical and illegal. Therefore do not take staff recruitment decisions lightly.
Once you are sure that recruitment is necessary for your business to thrive, the first thing you need to do is get employee liability insurance.
This covers you and business against any staff accidents that may occur at the workplace. Besides it is a legal requirement for businesses to have staff insurance.
Chances are you will already have insurance anyway if your business accepts customers at your premises. Therefore it may be a question of just getting in touch with your insurance providers and updating your policy to include employee liability.
However, it may be that your provider may require you to get separate employee liability insurance and if that is the case then you may want to shop around first to see if you can get a better deal elsewhere.
You will need to consider how much you will be paying the employee/s. You have to be aware of existing pay legislation with regards to minimum wages.
You are required by law to meet at least the minimum wage that has been set because you will be prosecuted if you pay your employees less than the set minimum rate.
Notify the Tax Authorities
You will need to inform the tax authorities that you are now employing staff. You will have a responsibility to collect PAYE tax on behalf of the government and therefore you will need to ensure that you have the capacity to do this.
Also, you will need to set a system for collecting any social security and pension contributions. You will also need to investigate your own responsibility with regards to staff pension contributions.
Different countries have different pension frameworks and laws and so it is up to you to research this so that you ensure you are operating within the law.
This is now a big issue and you can no longer afford to ignore it. You are required by law to ensure that the people you recruit are legally allowed to work in your country of operation.
It is your responsibility as the employer to do the necessary checks and if you are found to be employing illegal staff, you may be prosecuted and the fines can be very high.
Do not get caught up on the wrong side of the law because you choose to ignore little things. Thoroughly check Visas of any foreign employees and make sure there are no restrictions that you could be breaching.
Do not Discriminate
It is illegal to discriminate against anyone on the basis of their skin color, sex, age, sexual orientation, disability, etc.
Make sure your candidate selection systems are transparent enough to offer you protection against any discrimination allegations that may be levelled against you.
It is possible to find yourself accused of discrimination by a candidate simply because they were not chosen. Therefore if you have a selection process that is honest and transparent, you will find that such allegations will be found to be baseless and you won`t have a case to answer.
When you become satisfied that you have the right candidates, you must offer them a contract that clearly outlines the conditions of employment.
You have two options here. First, you could just go on the internet and download an employment contract template.
These templates are available for free or you can purchase them depending on the website you visit.
Alternatively, you can engage a legal practitioner to do a staff contract for you. Hence it is up to you to ensure that you give your employees suitable contracts that have the right terms and conditions of employment.
Your recruitment model must have a provision for staff appraisal. Assess how they perform their work and engage them on a regular basis to ensure that you get the best out of them.
Staff appraisal is a periodic staff/employer review and support, where employee performance is analyzed and support given where needed.
It also provides opportunities for employees to give feedback on tasks and working conditions. Staff training and development needs are identified during these reviews and decisions for further training made.
There are plenty of, free as well as paid for, appraisal form templates that can be downloaded off the internet so feel free to help yourself.
Last but not least, you will have to be aware that there will be recruitment costs involved when you bring in new staff. These costs can be quite significant and so make sure you use the most cost-effective method of recruitment.
I hope these ideas will help you make the right considerations and decisions about adding new staff to your business.