In light of the revised Australian Tax Budget of 2015, which is dedicated to stimulating the economy by improving the overall state of the small business sector, it is the perfect time for people with entrepreneurial inclinations to make their first jump into the world of business.
One of the first few hurdles a first-time entrepreneur would face is the whole process of employment, which can be costly, time-consuming, and stressful when done incorrectly regardless whether you’re in Brisbane, Sunshine Coast, or Gold Coast.
Here are 6 questions you should ponder on to improve the probability of getting good employees:
Hiring Employees – Do You Really Need To?
This is the first question you should ask yourself first. Weigh the risk of obtaining an employee against the probability of improved work efficiency, exponential increases in sales, and other key performance indicator relevant to your business.
If the risk is not worth it after analysis, maybe that means you should stick to being a sole operator until your business has scaled enough to force you to get hired help. Don’t rule out the possibility of hiring a subcontractor, as this option might be the better fit for your business until you actually need a consistent service.
What type of employee do you need?
There are a variety of employment types that you can mix and match until you find the correct combination that would help your business run smoothly.
- Full time – This type of employment requires employees to work on a regular basis, daily, weekly, monthly, except for holidays, leaves, and emergencies until their contract is terminated by their employer or they chose to resign and look for another job.
- Part time – Their role and benefits are the same as full time employees, however their working time is less than a full time employee’s standard working hours.
- Casual – Casual employees work on an irregular basis, most likely on terms and hours stipulated between them and their employer. This nature of employment tends to be used for special business occasions such as warehouse sale, for the business usually needs an extra helping hand to accommodate increased customer traffic.
- Contract– Contract employees work for a fixed-term agreed between them and the employer, usually for a special project. They enjoy the same benefits as full time employees, albeit proportional for the duration of their work.
How are you going to attract the right employee?
After knowing which type of employee you’re going to hire, the next step is to learn how you can attract and hire the right employee for your business.
- Clearly define the role and responsibilities of your future employee. Consider the type of work you expect them to do. From there, you could specify the job title, the skills required, qualifications and experience needed, work hours and the appropriate salary.
- Advertise the vacancy. There are a lot of ways to do this, others opt for employment agencies while others look towards their personal network and let word of mouth take over.
- Managing applications is the next step after advertising the job vacancy. At this point, you can filter the applications until you find the ones qualified for an interview.
- Set the qualified applicants for an interview. Make sure to keep them at ease throughout and thoroughly inform them of the nature of your business and their roles in it. If relevant, test them for relevant aptitude. Always ask work-relevant questions to gauge their experience. Try to end every interview on a positive note.
Do you know your obligations as an employer?
Every employer has a set of government-mandated obligations to ensure that employees will work properly, safely, uphold the interest of the society, and abide the law. The same goes for employers as well, only that they should focus on providing the best working conditions and terms for their employees.
Some of these obligations are: proper employment records, correct tax and superannuation, medical and safety support, insurance, and paid parental leave obligations.
Are you aware how terminating an employee should be done?
Last but not the least is learning how to terminate an employee properly to avoid legal squabbles that might hurt you, your business, and your employees.
Steer clear from reports of unfair dismissal and unlawful termination by determining the cause of termination in concrete terms, which may be work-related or for economic reasons. Then ensure at least 2-3 weeks notice is given of their impending termination as employees, after that make sure you properly carry out a terminated employee’s entitlements for a hassle-free employee termination process.
Are you ready to get your first employee? Let us help you make that huge step as seamless as possible, contact us and let’s help you get organized from employee records right up to your business taxes!