It’s a clear indicator that your firm is on the right track if you’re contemplating hiring a new employee.
To minimize unexpected issues and stress, various things must be addressed. Small company entrepreneurs often struggle to realize the true cost of hiring their first employee during the startup period.
This in view, here are some thoughts to ponder.
Putting up the job advertisement
You may wish to conduct the interview personally or pay an agency to do it for you, depending on your possible talent pool. If you’re unfamiliar with the day-to-day complexities of the career you’re advertising, the latter is especially helpful.
If you’re handling your hiring, this checklist of things to include in a job advertisement can come in useful. Once you’ve completed your ad, you can share it on social media, make an online or print ad, or post it for free on the government’s JobCentre website.
Calculating your pay
Salary must be estimated and continuing company expenditures to guarantee that equitable salaries are fulfilled. Small firms may cope with budget constraints by employing a part-time employee or hiring someone on a fixed-term contract to test the position’s sustainability. If they work shifts, you must pay them at least the National Living Wage (or the National Minimum Wage if they are under 23).
Are you struggling to come up with a number? To better understand your industry’s norm, look at Payscale, Glassdoor, and Indeed. A candidate’s salary expectations might also be a guide, particularly if they have some experience in their profession.
Set the day and time in writing with the applicants, and either provide the office location or a link if the interview will be conducted through video.
Examine the CVs you’ve received and make notes on each prospect before the interview. Estimate the length of each interview, allowing time to conclude any questions they may have.
Make sure there are no disruptions on the day. Quietly conduct the interview by turning off your phone or email notifications. If you’re doing the interview online, make sure you’ve downloaded the most recent version of your video chat software to avoid being held up by update delays.
Perform a background check
You’ve decided on a candidate. To begin, ensure that they are legally permitted to work in the United Kingdom. One of the following papers must be presented:
- Number of biometric residency permits
- The number on the biometric residency card
- A passport or other government-issued photo identification card serves as a means of verifying a person’s identity.
You may learn how to verify if a document authorises someone to work in the United Kingdom on the government website.
A DBS check is necessary for employment working with children or vulnerable people, as well as security positions. For positions like childcare and healthcare, more thorough background checks are available. It’s worth noting that the checks in Scotland and Northern Ireland aren’t the same.
You may make the following requests:
- Unspent convictions and conditional cautions are revealed by a simple check.
- A typical check that reveals spent and unspent convictions as well as cautions.
- An enhanced background check includes the same information as a basic background check plus any information kept by local police relevant to the position.
In addition to the enhanced check, a banned list check shows whether the candidate is on a list of people who can’t perform the job.
If you do criminal background checks, you must have a policy in place about hiring ex-offenders. You must also provide it if a candidate asks for it.
A DBS is only valid for a person’s period in the United Kingdom. If you want to learn more, look into the regulations in the countries where the applicant has previously resided.
Income tax and insurance
You’ll need the correct form of employer insurance now that you’ve hired an employee. Employers’ liability insurance is required as soon as you become an employer. It will assist you in compensating an employee who is harmed or gets unwell due to their employment for you. You may not need it if your worker is a member of the family or works abroad. If you need it, your insurance must provide at least £5 million in coverage. It is essential to get insurance since you may be fined £2,500 for each day you are not properly covered.
National insurance must be paid according to the law since failure to do so might result in harsh fines. This is also true with PAYE income tax, which is deducted from the paycheck. When you register as an employer with HMRC, you’ll be given a PAYE employer reference number – more on that in a moment.
The career opportunity
Send a written confirmation of the employment offer to your new hire. If your employee has been working for you for more than one month, you must provide them with a formal statement of employment. It should incorporate the essential job requirements, but it is not their contract. It should have the main message as well as a longer written statement.
The following should be included in the main statement:
- Name of the employer
- Name of employee or worker, job title or job description, and start date
- How much will an employee or worker be paid, and how frequently will they be paid?
- Working hours and days, as well as whether and how they may fluctuate (additionally if workers must work Sundays, evenings, or extra)
- Right to vacation (and if that includes public holidays)
- Where an employee or worker will work, as well as whether or not they will be required to migrate
- Where will an employee or worker work, and what is the employer’s address if they work in separate places?
- How long do you anticipate a position to continue (and when does it expire if it’s a fixed-term contract)?
- What is the length of any probationary term, and what are the requirements of such probationary period?
- Any other advantages (for example, childcare vouchers and lunch)
- Obligatory training, whether or whether the employer pays for it
Remember that you must educate your employee or worker about sick pay and procedures, other paid leave (such as maternity leave), and notice periods on the first day of employment. This might be included in the main statement, or it can be a distinct document. If the information is included in a separate document, the employee must have reasonable access, such as via a shared online folder.
Your employee must get the written statement within two months of the start date of work. It must contain information concerning pensions and pension plans, collective bargaining agreements, disciplinary and other complaints, and other employer-provided non-compulsory training rights.
You must notify HMRC that you have started working as an employer. This should be done before you pay your first employee, but no later than two months before you start paying. Expect a five-day wait for your PAYE reference number. The registration procedure may be completed on the government’s website.
Is it necessary for me to enroll my employee in a pension plan?
Yes, you do, since you’re an employer. Staff members can join if they meet the following criteria:
Between the ages of 22 and the State Pension age
Earn a minimum of £10,000 every year.
Normally, I work in the United Kingdom (this includes people who are based in the UK but travel abroad for work)
Now that you’ve hired your first employee, it’s time to introduce them to the rest of the team. On the first day, have all of their technology set up. Assist them in determining who their target consumer is and what they want from the product or service.
This is true for virtual/online onboarding as well. Have a video conversation with them to discuss working hours and any dress code requirements since the norm has shifted with the transition to hybrid and remote working. Encourage them to utilize video calls, even if just for a short time, to familiarise themselves with the people they’ll be working with. You’ll undoubtedly require additional platforms like communications and shared documents for a smoother workflow. In the absence of face-to-face communication, it’s prudent to communicate more to ensure that they’re getting along well and are clear on what they should be doing.
Are you prepared to make your first hire?
Although these are the fundamentals of recruiting your first employee, other aspects cannot be covered in a single post—comparing credentials to experience or personality, for example. You may ‘just know’ if an applicant is suitable or incorrect for the position in these situations.