Whether you’re just starting out as a small business or you’re expanding your home business because the workload has increased, hiring employees is one of the first things that you’ll have to put some thought into.
Do you need to hire?
The hire of employees may seem like an essential aspect of your growing business but make sure that the move fits the objectives that you have. In a day and age where the success of a small business is almost like walking a tightrope, you need to make sure that hiring employees won’t cripple you. If you want your business to remain small and simple, make sure that you have considered all avenues, including outsourcing and hiring freelancers or temps, before taking the plunge and employing full time staff.
Are you insured?
As soon as you consider hiring employees, you need to make sure that you have the relevant level of employer’s liability insurance. The cover is a legal requirement and has to cover you for at least £5million. The aim is to ensure your back is covered so that if one of your employees falls ill because of the work you do, or become injured at work, then you will be able to pay compensation.
As it’s a legal requirement, penalties are harsh if you don’t have the proper cover in place. You can be fined £2500 every day that you don’t have the right insurance in place and you could be fined another £1000 if you don’t have the employer liability certificate on display or available for inspection as requested. It’s really not worth not insuring yourself!
Register with HMRC
If you plan to employ people and haven’t done so already, you need to register as an employer with HMRC. You can do this up to 4 weeks before you pay your new staff members and it can usually be done online.
Do you have the right procedures in place?
Before you consider hiring employees, you need to understand the level of paperwork that comes with it and make sure that you stay on top of your game when dealing with it. From training manuals and employment policies to legal contracts, benefits and rates of pay – it all has to be in writing.
Recordkeeping is crucial and you need to be prepared to manage people – something that, if you have never managed people before, can be incredibly daunting. Evaluate whether you have the time to watch over others as well as run your business – remember, not all employees will have the same enthusiasm and thirst for success as you do.
Finally, you need to make sure that rates of pay, job descriptions, responsibilities and expectations are all clear – for a smooth transition from working alone to employing staff.
This article was written on behalf of Hiscox, a reliable provider of business insurance across various industry sectors. If you feel like you need to hire employees, take a look at the competitive rates that Hiscox employer’s liability insurance provides. Hiscox liability quotes are available online, to make your life easier.
Author Bio: This article as written by Roxanne Wells, on behalf of Hiscox.