Taking on your first employee is a big deal for any small company. Here are a few things you should do beforehand.
Taking on your first employee is a big deal for any small company. You will be handing over some of the responsibilities of your business to somebody else. You will also need to make sure that you are aware of your new obligations and duties as an employer. Here are some important things you will need to do when you take on your first employee.
#1. Carry Out Applicant Checks:
Getting the right people is imperative to small business success. There’s always some element of risk when you take on an employee. Once you’ve found a candidate who seems to be a suitable match for the position that you have advertised, it’s important to make sure that they are the right person for the job. Check that they are legally eligible to work. Ask for references so that you can get more information about them from their past employers.
#2. Get the Right Insurance:
Until now, you may have been fine with just public liability insurance. When you hire an employee, you will need to make sure that your company also has adequate insurance coverage to protect it. Claims may be made by employees who have been hurt or fallen ill at the workplace. You will be required to take out adequate Worker’s Compensation insurance.
#3. Register for Tax Purposes:
Whilst your business will have to pay tax regardless of whether or not you are hiring employees, it’s important to make sure that you update your details and register as an employer when you take on your first hire. As an employer, you will usually be responsible for making sure that the correct amount of tax is being deducted from your employees’ salaries.
#4. Put HR Strategies in Place:
From the moment you hire your first employee, it’s time to start thinking about what you need to do about your HR department. One employee alone is probably not worth hiring a complete human resources department, but you will need to ensure that you have all the right procedures in place to look after factors such as payroll, vacation times, benefits, sick pay, and grievances. You may want to consider outsourcing HR services to take care of this or using a good employee management system to help you streamline the process.
#5. Working Towards the Future:
Finally, taking on your first employee can be a massive step for your business as this individual might be the person who is able to help you reach your goals and take your business to the heights that you want it to reach. So, it’s important that you spend time further getting to know your new member of staff and determining where they will be best placed in the business. Often, you may find that as a small business, the people you hire aren’t just good at the tasks that you’ve hired them for, but so much more! Nurturing your relationship with your employees is key.
When it comes to hiring your employees, make sure that you’re fully prepared with everything that you need for a productive partnership.