Congratulations! Your business is growing and you can’t keep doing everything yourself; you’re ready to hire your first employee but where do you start? Before you are ready to hire your first employee, there are some things you must consider first.
There are many factors that add to the cost of an employee above wages alone. Take some time to consider the cost of superannuation, workers’ compensation insurance, leave, the cost of induction, training, uniforms/protective clothing, tools, plant and equipment, computer, workstation. It is wise to know what you are getting yourself into.
How do you determine the type of employee your business needs? This will vary depending on a few key points. How many hours per week will you need your new employee and are these hours likely to remain the same week to week? Would your business benefit most from someone on a casual or permanent basis? Permanent employees will be entitled to annual leave, sick leave, public holidays and other forms of leave along with notice periods. While casuals aren’t entitled to paid leave, they do receive an extra 25 per cent in their pay and their employment can be terminated by either party without notice. If this is for a specific project you might only need an employee for a fixed period of time or engaging a contractor could be a more appropriate arrangement.
Clearly defining the position can guide you in the right direction. Will your business be better serviced by someone bringing experience or a blank slate you can train to match your business? Have you considered whether the position requires the employee to hold a qualification? Equally important is finding someone who shares the company values, it is vital they fit with your business culture.
Have you decided how you will advertise the position? Will you self-manage the process, posting the vacancy on Social Media (Facebook, LinkedIn, etc.) or engage a Recruiter? Whichever route you choose be thorough – have a good recruitment process in place and make sure you conduct reference checks on any candidates you are considering.
Check what Award your new employee will be employed under and consider the market rates are for the role you are filling. Will you pay Award rates or above Award rates? Minimum conditions of employment come from their Award or your Enterprise Agreement. Employees could also be entitled to allowances and penalty rates – make sure you understand the correct entitlements that apply to your staff.
Once you have found your new employee and are bringing them on board they should be provided with the following documentation:
You will also need to collect and record information about the employee’s superannuation details, bank account details, citizenship status and emergency contact details.
There are lots of things to consider before bring onboard your first employee, however they are important to do to ensure a smooth and successful process.
Karen Hillen, Director, Hillen Staff Solutions