A lot of business owners start off as a one man (or woman) band. This can work well in the early growth stages of your company, as you have no one to be responsible for either financially or otherwise in the tricky initial weeks, months or years of the business. Once you reach a certain point however, you will need to either outsource some of the day-to-day business operations such as finance, or start to bring in some employees in order to be able to continue expanding and increasing turnover. So what do you need to do in order to have people work for you? It’s not just as simple as setting them up at a desk, but it is well worth the investment and must be done right.
The reasoning behind taking on staff is usually so that your business can earn more money, but as with every aspect of business, you have to spend money to make money. Of course you have to pay your employees a salary, but there are other costs involved. You will need to ensure that they have all the equipment they need, and that you have made all the necessary adjustments with the tax office. If you have employees you are responsible for their taxation and NI contributions, as well as ensuring all the details held by HMRC are correct.
It is important to make sure that staff are protected when they are working for you. This means protecting them from anything avoidable that could cause them harm. Health and safety checks are vital in preventing workplace injuries, but no matter how many precautions you take there are some things that are unavoidable. You can be sued by employees for any accident or illness that occurs due to their working environment or in the course of their work. In order to protect your staff, and prevent any big payments from your company accounts, you can take out employer’s liability insurance to cover the cost of any compensation.
As the sole employee of the company to date, you will probably have certain way that you like things to be done, and have, to date, been able to run the business as you see fit. You don’t have to relinquish this control when you take on staff, but you will need to provide some sort of structure and detail some procedures and methods for them to work to. Without these they may be unsure as to your aims and objectives, as well as being uninspired without incentives and goals. Set up a working document of how you want your staff to operate as part of the company, and what you will do to support them in order to maintain a good balance.
There are lots of things to think about when expanding your business to include employees, but with careful planning it could be the best move you’ve made yet. Look into everything you legally need to do when hiring staff, hire those that share your vision, and allow yourself the opportunity to step back a little whilst continuing to grow.