How do you know when you’re actually ready to start taking on an employee?
The main thing when you are thinking about bringing a new person on is are you financially ready to bring on a person on board. We suggest as small business owners think about how much you are going to pay them. Make sure it’s within the award as well, and make sure its the right award including all the allowances such a leave loading, broken shifts etc – that’s why it’s important. And you need to put that money aside for a period of three months. Put it into a high interest savings account and then just save it all up. And if you can afford to pay that every single week for three months, then it looks like you’ll be financially in a position to employ someone.
There’s nothing worse than bringing someone on board and finding out that you cannot pay them. You don’t want to do that. You know if you get to the three months and find that maybe it’s not the right thing, cause you’ve had to think about it as well, then you’ve got a little investment pot as well. You will also need to think about what kind of employee – casual, part-time or full-time. If it’s occasional (casual), then you’ve got a bit of more flexibility. But if you’re a permanent part-time/permanent full-time, you’ve got a notice period to pay as well. You want to make sure that you can afford that, that you’ve actually got the funds there. You don’t want to back yourself into a corner, that’s for sure.
You also need to think about
- Finding the right candidate
- registering as an employer
- carrying out employee ID and background checks
- providing a contact and employment statement
- payroll and correct payments to the awards
- Sick pay, holiday entitlements and public holidays
- plus insurances
There is a great guide written by Doug Kelly (Paulette from Fresh HR Insights has contributed to) all about employing staff for the first time. You can grab it HERE
The type of employees that you choose is a very important decision and you need to be aware of the legal ramifications relating to each and manage them accordingly and appropriately. Follow ‘best practice’ to reduce the costs, minimize legal exposure and develop an engaged workforce.
Types of employees
- Permanent full-time
- Permanent part-time
- Casual employment
- Non-employees such as independent contractor
- Labour hire workers
Your business has its own set of unique operational requirements and what meets your needs won’t necessarily meet the needs of another. You can find more details in our fact sheet, Grab it by using the link below.
Related Tag: HR Support Gold Coast