A sign that your business is successful and growing is realising you need help to build capacity.
You’re ready to take on your first employee, but that can be a scary prospect – there are so many myths around taking on employees and managing people. But if you don’t, your business won’t grow.
There feels like there is so much employment law and bureaucracy to deal with, but with good HR support, the small business owner can ensure they get it right and it doesn’t need to cost a
How to build your team effectively?
Think – try not to grab at the first offer of help or make a knee-jerk reaction.
However, well-meaning your friend or family member is, think before you use their help. Treat their appointment as you would someone you don’t know. That’s not to say, you shouldn’t engage or employ a friend or a family member, but the following applies as much to them as to an outsider, and something else to consider before you go down that route, how will you will feel if the relationship spoils? This won’t be true of every friend or family member you engage or employ but it is a risk. Following these guidelines will minimise this risk.
Give thought to what help or support do you actually need. Consider what it is you want this person to do – make the thing you sell (or provide the service), administration, bookkeeping, packaging, distribution, sales, marketing, social media etc. etc.
Using a mind-map is a great way of brainstorming all the work that needs to be done in your business and grouping the tasks into functions or skill areas.
It can be so easy to take someone on giving them bits to do with no structure. That can lead to overlapping/duplicating work, key bits not being done, confusion for customers and suppliers, or boredom for the employee (if only given mundane, easy tasks)
What do you need to consider?
- What will the new employee(s) do – write job descriptions, based on your decisions from your mind-map.
Make sure duties and responsibilities are clear; no overlaps or gaps. This does not need to be a professionally formatted document; a list will suffice. Clarity is the important bit, and of course, it will include “and any reasonable request to muck in with a small team”.
- What hours and days do you need them to work? Will it be a full-time or part-time position; temporary or permanent?
- How much will you pay? What other rewards might you offer? Remember, the minimum pay must be the National Minimum Wage for their age. This changes every year in April.
You also need to realise that they have a minimum of 5.6 weeks off each year, and you will pay Employer’s National Insurance and pension contributions if their pay hits certain thresholds.
- How do you want them to behave? What are the ‘rules’ of your business?
It’s worth writing these down so everyone is aware and clear. You’d be surprised how different our values and styles are and how uncommon ‘common sense’ is.
- What sort of person could do this job?
What skills and experience do you need them to have.
- What is your personal management style? You will need to train, support and monitor their work (standards and volume). Are you ready for this? Even people with experience will need this to work effectively.
- Where will they work? Do you have space in your current premises?
Or if you work from your home, how will you feel about someone working in your home, and what will you do when you take holiday or want time away from work?
If you can allow them to work from their home, remember, you are responsible for their work environment, you will need to consider providing them with equipment and furniture, and how you will monitor their work.
What do you need to do?
- Have some sort of selection process – for you and them. Testing gives a much better assessment of skill and suitability than just an interview.
- Plan an induction and initial training. There is nothing worse than your first week being disorganised.
- Give them the necessary paperwork – offer letter, contract, starter form for payroll etc.
- Have a system to monitor their performance and communicate regularly.
Exciting times!
Get it right from the start and things are more likely to work out well.
Taking on your first employee is truly exciting. It’s worthy of celebration. It’s the next step in building a business; you’re growing, your turnover can support more than just you. Once you’ve taken on your first employee, taking on the next ones is so much easier.
I would recommend speaking to a local HR consultant who works with micro businesses. Do this before you commit, rather than after. They can help you find the answers and get your first employee started.
Karen Kirby – greenshoot HR