Starting up and running a business is not for the faint-hearted. As your business grows the next step is often to start recruiting. This is a huge step and one that fills many people with fear. After all, not only do you become responsible for providing a regular wage to your employees, you will find yourself having to take on multiple roles: the decision maker, mentor, motivator and role model, whilst at the same time running your business.
On the other hand - how else can your business grow? Before you even start the recruiting process, here are some points to help you make an informed decision.
The work to be done
A good starting point is to identify the work that needs to be undertaken with an estimation of how long you think this would take, to give you an indication of how many hours you would need the person to work. Start to write the tasks down as this will help you to form the job description.
Don’t restrict to thinking about the short-term, consider how the role could grow as the business grows. This will help to identify the mindset of who you are looking for, is it someone looking for a specific set of tasks or someone who can be more adaptable as the business needs change?
Permanent or temporary / Part-time or full-time?
There are several options for how to recruit someone depending on your business needs.
- Agency staff: Good for short-term employment, covering specific projects
- Freelancers: For when you don’t want any involvement with employing and when it is specific defined work for which you know you have a specific budget
- Zero hours contracts: For when you are not sure when and for how long you need employees, it depends on the customer demands, gives lots of flexibility
- Direct employment: Good for when you have work to be done over the longer term and you want to train someone to work in the way your business requires, providing continuity of staff that you do not always get from agency employment.
All of these can be used for full-time or part-time work. To broaden the pool of candidates be as flexible as you can be, for example, by offering part-time or job-share roles.
Cash flow
You will need to identify the salary range that you would need to pay depending on the type of skills and hours required, find out what the market rates are for the role you want to recruit for. Once you have decided this the next step is to factor in the direct costs, for example, base pay, holiday pay, tax, NI, pension and to factor in indirect costs which will include business tools such as laptops, mobile phone etc. An accountant will be able to help determine your cash flow needs.
Concerns about paid time off and employment tribunals
These things can be a major concern especially if you are becoming an employer for the first time. Remember there is a lot of help and advice available to you.
Paid time off – Of course employees have certain rights and entitlements when it comes to time off: maternity, paternity, adoption, holiday, sickness, emergency leave for caring responsibilities etc. However, a few facts:
- You are not required to pay more than statutory minimum wage for any type of leave (check emergency care)
- Most employers can claim up to 92% of this back, up to 103% if your business qualifies for small employer’s relief
- If you cannot afford to pay the statutory minimum, you can apply to reclaim it in advance (e.g. maternity leave).
For more information - https://www.gov.uk/recover-statutory-payments/reclaiming
Employment tribunals – These are actually really rare and since the introduction in 2014 of fees for making a tribunal claim the numbers have dropped significantly. If you treat your employees with dignity, respect and fairly, then the risk of complaints being made and a case taken against you is minimal.
The art of delegation and performance management
If you are serious about growing your business you will have to put your trust in other people and let them help to grow the business. Recruit people that will compliment your own skill set. Invest some time in learning how to delegate and manage performance to ensure you get the best from them.
Where will they work?
In today's connected world you don’t necessarily have to have your own premises. You could explore the following options:
- Employees based at home
- Lease space in another business whilst you are getting started
- Share working space with other small businesses.
Consider how much time you will need to spend with the employee. During the induction this will probably be significant, but beyond this period how will you communicate? Good management and communication skills are critical to remote working relationships.
The next steps
Once you have decided to recruit start to plan your next steps. This should include, writing a job description, determine the job title and salary, decide on your recruitment strategy and plan the induction.
There is a lot to consider when you start to recruit talent for your business but don’t be put off from taking the next step. With some careful planning and a clear structure, you can significantly improve the chances of success in growing your business with a new energised team around you.