Employing staff for the first time - UK: 18 steps to take

Firstly you need to identify if there is a genuine need for an employee or if it is possible to outsource some time-consuming tasks in another way, such as through contractors, freelancers or other businesses.

This post will help you decide if you are ‘ready to employ staff’

Decide what job your new employee will do. Are they there to take on some admin tasks, entire areas such as sales or making or delivering products or services? You must be clear about what you want someone to do. Being clear will allow you to get the right person, define the pay level required and keep roles and responsibilities clear.

People will want to know what they will earn if they come to work for you. You will have to consider what a fair wage is, any national minimum wages in your area, and current market rates.

Put together a clear and concise advert that will allow prospective candidates to understand what would be required of them, why they would want to work for you and how to apply. Be mindful of not putting in any details that may discriminate against people.

It's time to get your advert out to the world, whether you choose a shop window, word of mouth or a fully-fledged advertising campaign. It will be harder to fill a role if you haven't told anyone about it.

You need to know what skills you are looking for, what experience you expect and how well they will fit into your business. It's best not to go for someone the same as you; diversity is the spice of life, as they say.

You will want to have a pre-defined interview structure in place already; it will keep your head clearer at the time and create fairness for all. Assess how well they meet your criteria, and consider a paid job trial for the hands-on proof of ability.

You think you've found the one! It's time to make an offer; being clear about your offer can act as your written statement of employment, which has to be provided in the UK by law. You will want to be clear that your offer is subject to various background checks such as references and right to work; if they don't come back favourable, you can withdraw the offer.

There will be documents and information that you require from your new employee and documents that you will need to provide to them. Keeping accurate records is vital; get a secure system set up from the start, making it easier as you grow. Your new starter will need a contract from you and a broader set of information within the first two months. However, it's best not to delay this and have it ready from the start.

Right-to-work checks are one of the items that fall under your background checks; before someone signs their contract, right-to-work checks must be complete. If, for any reason, they can not work in the UK and they have started, you are open to a hefty fine.

Some roles and companies require Disclosure and Barring Checks to take place. It is necessary to check if you have a legal requirement to undertake this check.

Checking references is a bit of admin that can be useful when it works; I recommend calling the given referees as it provides more of a conversational flow and the opportunity to explore the given responses. Whatever comes from the references, you need to consider their merit (not all ex-employers are fair and honest). You may decide, despite the reference you are willing to take a risk on someone.

Employers liability insurance is another legal must-have in the UK. It needs to be in place on day one of your employee starting with you, with minimum requirements for which you must have coverage. So start getting quotes to find the one best suited to you and your company.

You are about to become an employer; congratulations. You may tell your nearest and dearest first; however, the people who want to know the most are the government. Yes, that's right, it's time to register as an employer.

Can you do the payroll yourself? Sure. Do you want to? That is up to you. You can consider several things, including your capabilities in this area. It is possible to use the free software recommended by the government to post pay information directly to them, but you will still be required to do all the calculations in most situations. There are many good software providers where you enter the information, do the calculations, and send it over to the powers that be for processing. Alternatively, you could outsource to an actual payroll provider to complete your payroll for you.

You are required to enrol most employees into a pension; there are minimum percentage amounts that you will be required to contribute, although you can be more generous if your budget allows.

Some things need to be sent to the employee, such as a wider statement that includes more details about your business and what they can expect from you. Much of this falls under a contract of employment or the employee handbook.

The first few months are when your new employee will need all the support you can give them. It's sensible to have a probationary period with an induction plan to help employees learn how you work and embed them into your business. Setting your expectations in advance will make it clearer to them, when you regularly meet, how well they are doing.

Through my course The People Team we walk through all the stages of hiring your first employee, from knowing when you are ready to setting them up for success.