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As a start-up, taking the leap from operating the business yourself to recruiting staff can be a daunting process. While it’s exhilarating to see sales soar, sooner or later you may find yourself overwhelmed with work.
At this stage you may need to consider taking the plunge and hiring additional personnel. Managing employees comes with many responsibilities. You could suddenly find yourself confronted with issues such as recruitment, payroll and managing personality conflicts.
Proceed with caution
Don’t rush to hire the minute your sales increase. All businesses fluctuate and sales can quickly drop. The cost of adding employees is hefty, involving insurance, bigger offices, training time and new technology. Before you hire, get a feel for the business and an overview of money coming in and out.
Write a job description
The first step to getting your team in place is to establish exactly what their purpose is and how many people you need to employ. Begin by deciding on a job title and writing a job description. This should list the main tasks, responsibilities and objectives, in addition to details such as salary, location and hours. You should also write a person specification, focusing on experience, values, knowledge, qualifications and personality.
Determine your recruitment method
It is tempting to use a recruitment agency. It can save you a lot of time advertising, sifting through applications and interviewing. Agencies can be costly, so it’s worth asking around and seeing if you can negotiate a ‘small business’ deal. You may be able to structure the payment so you pay half the fee on appointment and the remainder on successful completion of a probationary period. Managing the recruitment process yourself will save money, but is likely to involve a heavy workload. Don’t be afraid to ask customers and suppliers if they can recommend someone for the role.
Select the right candidates
Your employees are your most important asset. It may seem difficult to be choosy when you are recruiting one or two people for the first time, but it is essential to get it right. Make this your number one focus, as hiring the wrong person could be an expensive mistake.
Prepare for hard work
Once your chosen employees have accepted your job offer, the hard work begins. You will now have to manage routine tasks such as accounting, payroll, wages, benefits, tax and national insurance. You’ll need to be registered as an employer with HM Revenue and Customs (HMRC) and register for PAYE online. A key question will be whether you are planning to manage these roles yourself or outsource them. As your organisation expands, you will probably need to consider accounting, payroll and human resources software for your business.
Recruiting is a big step for small businesses, and taking on your first staff member requires careful planning. Good employees can be your most valuable asset, bringing with them a wealth of knowledge and experience that can help your business succeed.
Only take on employees if there is a genuine business requirement and other options such as outsourcing or hiring temporary staff are not viable.
