What do you need to do before taking on staff?

12/01/2023

If you have recently started your own business, you might be in a position to handle all the work yourself.

But this will not last forever.

If you have plans to grow your business, there will come a point when you are unable to cope with the workload single-handedly.

So, you will need to bring people on board to ease the pressure.

To do so, you need to consider the following:

What do you need support with?

Before you take on an employee, you need to justify why the additional support is required.

Review your business’s output to identify where there are gaps, or signals of increasing demand that you would be unable to cope with.

If you are not currently at capacity but aim to be in the future, you need to be realistic about whether taking on an employee would be sustainable.

Think about what the employee would be doing daily. Are there specific skills that you are lacking and need support with?

You must have a clear understanding of what the employee’s role would be and how they would contribute to the business’s overall goals.

Forecasting can help to predict the potential revenue that the employee will generate.

If you are taking on someone to help with the volume of orders, you can use your own output as a guideline.

However, bear in mind that it can be difficult to quantify exact output due to individual differences in productivity.

How much will this cost your business?

When you are satisfied that taking on an employee is justified, you need to decide on a suitable wage to offer. Research similar job listings to get an indication of what you should be offering.

You should also look at your business’s finances to confirm a salary range that would be sustainable.

Make note, you must pay any employees at least the National Minimum Wage and give them 5.6 weeks paid holiday each year.

You should also factor in the cost of Employer National Insurance contributions, pension contributions, benefits, and the cost of equipment or accommodation required for the role.

In the next blog in this series, we will cover what documents you need from new members of staff.

Need advice on payroll? Get in touch.