As a growing business, one of the many steps you’ll take is employing new staff. Doing this for this first time can seem daunting and having a little guidance will go a long way. Here we give you our best tips on how to ensure you’re recruiting right.
Decide a wage
Take a look at your accounts and work out how much you can realistically afford to pay a member of staff. Ensure it’s not going to leave you struggling or scraping the barrel at the end of the month. If your budget for a wage is smaller, it might be an idea to hire someone who’s maybe not as qualified as you’d like but you can train up. With little exception, workers are entitled to receive National Minimum Wage or National Living Wage. The latter is higher and workers aged over 25 are entitled to it.
During the recruitment process it’s not uncommon for candidates to negotiate salary. Keep your budget in mind and only ever agree to more if you know that you can afford it. Think about the experience and qualifications that the candidate holds. Are they worth the increase that they’re requesting? You can only pay people what your income allows and it will be detrimental to your business if you over stretch yourself.
To decide a wage, we advise:
- Assess how valuable the position is to your business
- Look how much other companies are paying the same job
- Decide on a payment method
- Write accurate job descriptions
Check them out
Perform identity checks and check their references as well as their qualifications. It’s easy for somebody to lie on their application and you need to protect yourself against it. You don’t want to hire somebody to find out they’re not who they say they are or don’t have the experience and qualifications that they said they have.
It’s also vital that you make checks to ensure that candidates can legally work in this country. You’ll end up in all sorts of legal altercations if you employ somebody without the right to work in the UK.
Depending on your industry, you may need to apply for a criminal records check. Industries such as security and those which work closely with vulnerable individuals and children will need to be thoroughly checked.
Employers’ liability insurance enables you to meet the costs of any legal fees or damages for employers who are injured in the workplace. Where this is essential for all employers, if your workplace is particularly dangerous then you should do this immediately. This covers employees falling ill at work due to fault of the employer too.
Give written details to the employee
As soon as the candidate receives the news that they’ve got the job you should send them all of the details of their employment in writing. All the primary terms and conditions should be set out and offer them the chance to query this to ensure both parties are happy.
Let HMRC know
As a legal requirement of being an employer, you’ll need to notify HMRC. Even if you’re subcontracting workers you’ll still need to let them know. Register with HMRC before the first payday as it usually takes up to 5 days to get your employer PAYE reference number.
Check for auto enrolment requirements
As an employer you need to provide all employees with a workplace pension. Large employers began this process in 2012 and smaller ones now must comply. You must arrange the process before your businesses staging date. Find yours here. You’ll get a letter from the Pensions Regulator 12 months prior to your staging date which will confirm the date and give you access to necessary support.
Employees who must be registered are those aged between 22 and the State Pension Age, earn minimum £10,000 p/a and work in the UK. There are likely to be some employees who don’t qualify as necessary to be automatically enrolled. These employees can opt into workplace pension saving with a minimum contribution from the employer. However, you aren’t required to contribute to the pension scheme if the worker earns these amounts or less:
As employees are enrolled you are required to:
- Pay at least the minimum contributions on time.
- Allow them to opt out of the scheme if they want to and refund their money within a month.
- Allow them to re-join once a year if they’ve opted out.
- Re-enroll them every three years if they’ve opted out and are still eligible.
How much do you need to contribute?
Based on the employer paying the minimum rate:
|The employer pays||The employee pays||The Government adds tax relief of||Total contribution|
|2% of qualifying earnings until 6th April 2019 whereby it will be 3%||2.4% of qualifying earning until 6th April 2019 whereby it will be 4%||0.6% of qualifying earnings until 6th April 2019 whereby it will be 1%||5% of qualifying earnings until 6th April 2019 whereby it will be 8%|