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What do you need to do to hire staff?

  • Blog
  • 03 April 2017

In any business, there will come a point where hiring new staff members will be necessary to help with growth and expansion.

We explain you need to be fully prepared and ready to make your first hire.

What do you need to do to hire staff?

Determine your business needs

Before starting to scout the market for a suitable employee, you should spend a fair amount of time thinking about how and where you are being stretched the most in your business. What am I struggling to complete on time? Will an extra employee lead to more business and sales? What exactly do I need them for to help facilitate the growth of my business?

You should be aware of how much you need the new employee and how much pressure they can take off you. UK law dictates that your employee must have 5.6 working weeks of time off annually, and that you account for statutory sick pay if they are ill for more than 4 days. If your employee takes time off or is absent, will you be able to take up their workload again temporarily, or will your efficiency suffer drastically as a result?

As you figure this information out, prepare a written statement of employment. This will detail several key points. Including:

  • What skills and level of experience you are looking for in an employee.
  • A brief description of your business
  • Detailing of the exact job title
  • Responsibilities involved.

This will be your potential employee’s first contact with your company, so it’s important for this to feel both engaging and well-written enough to make them want to apply.

The hiring process

Once you know the sort of employee you want you need to set about finding them.

This requires making a job listing, either to share in local papers, on job sites, with recruiters or in the job centre.

If all goes well you will receive a number of CVs helping you to select the potential interviewees you want to consider for the role.

However, you should also be aware that it may take time to find the perfect candidate. Don’t rush the hiring process, or you may find one hire doesn’t fit with your business, costing you time and money to replace them.

Meeting your obligations

Once you have interviewed and selected a candidate, you must determine their eligibility to work for you. No matter what your business is, you need to determine if they have a legal right to work in the UK.

Usually, this can be proven through supplying their passport or a correct visa. Use the Government’s right to work calculator to determine their eligibility if you are unsure. If your business is healthcare related, or involves working with children, you will need to perform a criminal record check – now known as a DBS check -, and if there are any barriers to your work, such as good eyesight for driving commercial vehicles, or being fit enough to engage in manually demanding work, a health check is also necessary. You should note that continual awareness of the health and safety regulations around your workplace is a legal obligation, known as your duty of care to your staff.

Once you have ensured your staff member can work for you, it’s time to register with HMRC as an employer. This is a simple process, and can be done online, but you must do it before paying your new employee for the first time. Similarly, you also must purchase an employer’s liability insurance plan that covers you for at least £5 million. The only exception to needing EL insurance is if your employees are direct family members, or not resident in Great Britain.  

You also need to automatically enrol your staff into a workplace pension scheme. This is a way for the government to prepare this generation’s workforce for retirement, largely borne from the understanding that not enough people are saving for it. By 2018, this scheme will be fully rolled out, and every business in the UK will be involved in a workplace pension.

How can FSB help you to set up your business?

Hiring an employee contains a number of steps and might seem more complicated than you initially expected it to be.

FSB Creation is a package that provides people looking to establish their own business access to a range of services designed to help and support new start ups. Including advice and guidance on how to go about preparing your business for expanding the number of staff it has.

These services include access to:

  • A dedicated help and advice line
  • Insurance services
  • Payment services
  • Help with company formation
  • Networking support

To find out more about how you could benefit from FSB Creation get in touch with a member of the team or visit our FSB Creation page.

FSB Employment Protection from FSB

A wealth of important information and advice, available online in-case you face dismissal or discrimination claims and employment tribunals.

Find out more