As we head into spring, many small business owners will be reviewing productivity during the first quarter and looking for ways to strengthen their business throughout the remainder of the year. As a small business boss, you will know that your employees are key to your organisation's success and you may be thinking about bringing in new people to help your business grow.
Taking on new staff can seem daunting but it is simpler than you think to comply with employment law. New research from the by the Department for Business, Innovation and Skills (BIS) has revealed that significant disparities exist between small businesses in their confidence and awareness of managing employment legislation.
The study found that almost a third of respondents feel confident in their understanding of employment law and their role as an employer. However, 34% feel that employment law obligations are ‘not relevant' to their business and a further 20% report that they understand their obligations, but worry that they get it right.
It is useful to identify the sort of boss you are when managing employment law and then seek guidance where you need it. The government has created a tool to help you do this. By following this guide [1], you can also get instant tailored advice to help you comply with employment legislation.
As a starter, here are three top tips on how to manage your obligations when taking on new staff.
Know your options
Some employment options will be more suitable for your business than others, so think about what will work best. For example, consider whether you need to employ someone on a temporary basis or on a fixed-term contract. If you only need someone to cover a few extra hours every now and then, it is a good idea to think about using family or friends to help out at the weekends. Remember that investing in suitable staff will save you money in the future.
Considering pay
If you intend to recruit new staff, you need to set rates of pay that will encourage people to apply for your vacancies and keep any existing employees you may have happy and motivated. When paying staff, there are certain laws you need to adhere to but there is no need to be put off recruitment by these regulations. Guides are available on the Business Link website to advise you on what you should consider when setting pay rates.
Managing staff
Before you offer a position to a new member of staff, you will need to have thought about how much holiday to give. Most workers are legally entitled to paid holidays. As of the 1st of April 2009, a worker's statutory paid holiday entitlement increased to 5.6 weeks (28 days for anyone working a five-day week). This can include public and bank holidays. The entitlement for part-time workers is calculated on a pro-rata basis.
Recruiting new staff should be an exciting time for your business and employment legislation needn't detract from this. Use the free government advice available to ensure you meet your obligations and save money at the same time.
For more information visit www.businesslink.gov.uk/employingpeople [2]