Hiring new employees can usher in new ideas, strategies and processes that could ultimately boost your profitability. Here we outline some key points to consider if you're planning to expand your workforce.
Know the legal requirements
It is essential to ensure that you are up-to-date with the latest legal obligations. This includes equality law, which applies to all aspects of the hiring process, from advertising a position, to the selection of candidates for interview, the interview itself, and the decision-making process. Your business handbook should set out clear policies for such areas, and it may be worth reviewing these policies before you consider hiring.
Assess your staffing needs
It is essential to consider carefully how many new members of staff you require, and exactly which functions they will fulfil. Does your business require specific skill sets? Would it be beneficial to recruit multi-skilled individuals? Considering such questions and highlighting these qualities in your job advertisements can help to filter out the most desirable applicants. It may also be advantageous to assess your competitors' offerings: what benefits do they offer to new starters? How can you match or exceed these?
Additionally, carrying out employee exit interviews prior to hiring new employees may help you to understand which areas of the business could benefit from improvements.
Review your job advertisement process
How and where will you advertise your position? Does your advertisement contain all of the essential information you want to convey to prospective employees, including the main duties of the role, salary details, and any specific benefits? How will your selection process advance – will you offer an interview and/or a practical test? Taking these points into account will help your business to employ the most suitable candidate(s) from the outset, thereby minimising the disruption and cost to your business.
Plan for additional costs
Taking on new employees will have implications for your business's finances. Advertising alone could potentially involve a hefty sum.
As well as the cost of additional salaries, businesses can also expect to see their tax bill rise: employers are required to pay Class 1 (secondary) national insurance contributions (NICs) on any payments made to employees that are above the secondary threshold. However, many businesses may benefit from the Employment Allowance, which could reduce their NICs bill by up to £3,000 per annum.
Income tax deductions will also have to be made for new employees under the Pay as You Earn (PAYE) system. And don't forget, employers are now required to auto-enrol staff into a workplace pension scheme and make a minimum employer contribution to the scheme.
Make arrangements for an induction and training
Implementing a sound induction process and providing the relevant training programmes may prove to be a deal-maker for a new employee: starting a new job may seem daunting, but having an effective process in place will help to ensure a smooth settling in period for your business and your employees.
Careful planning can help to improve the recruitment process and keep your business costs to a minimum. For more information on managing your business, please contact us.