It would be fair to say that starting a business is easier than it ever has been before. Once upon a time there was a high chance that you would have had high initial costs, with a bricks and mortars store usually being one of these. Now, through the power of the internet, this completely isn’t the case.
Something which remains true is that the biggest step yet is when you start to take on employees. It could be argued that this is the point in which your business becomes serious; you owe commitments to people and you simply must turnover sufficient sums of money in order to fulfil their salaries.
As such, making that first hire is certainly a big decision. Through today’s post, we will take a look at some of the key considerations you should take into account as you brace yourself for this important step.
Do you need a full-time employee?
As soon as you do take the plunge and employ someone, there’s no doubt that you will be shocked at the progress in which your business makes. This is where you can literally double your output, or perhaps more if you have hired a specialist.
However, we are also in an era where you don’t necessarily need to employ full-time staff. If you are still conscious about costs, consider hiring on a temporary basis. London based temping agency Staff Heroes are experts in this field and one of the big advantages is that you only pay when you need the work doing, whilst most employees can start instantly.
The recruitment process itself
Regardless of the option you take in relation to the above, you need a solid recruitment process. A temping agency will sort this for you in one regard, but if you are opting for the full-time route consider whether you will use a recruitment agency. Sure, their fees can be high, but without a HR department it might make your job all the more easier.
If you are looking to cut costs in all regards, there are of course the job marketplaces which will at least cut the middle-man fees.
How much should they be paid?
For a startup, this is a difficult one. After all, you are unlikely to be able to pay a high starting salary or compete with many involved in your field.
This is where you might need to get creative. Firstly, calculate just how much your business can realistically afford each month to pay on a full-time employee. Then, calculate any benefits that you can offer. Whilst you might not be able to compete on salary, you may be able to offer perks which make more of a difference to the applicant in question.
The legal fine print
Finally, this isn’t a case of just paying a salary. There are all sorts of other issues to consider, with national insurance, PAYE and pensions all being required. Failure to comply with these issues can result in big fines, so make sure that your new business is playing by the book from the get-go.