Hiring your first employee is a rewarding milestone for any limited company director – it means that your business is expanding and the hard work you’ve been doing is paying off. Before you storm ahead and find yourself buried under a pile of CVs, here are a few things you will need to consider about the journey.
Before you start hiring
First of all, it may be helpful to establish the following:
- Do you want to hire a permanent employee or a fellow contractor?
- Do you need someone to work full or part time?
- What level of expertise do you need?
Finding the right candidate
Finding the right candidate is crucial for your small business, so you should have a clear understanding about what you’re looking for before you begin searching for talent.
Start by creating a clear job description outlining exactly the skills and experience you’re looking for from the offset. Using job boards can be a costly process but it’s important that you find the right talent. You could also consider enlisting the help of a recruiter who will guide you through the process.
Take care of the legal bits
As the employer, your new member of staff will become your responsibility. If anything happens to their health and wellbeing whilst they’re at work, you could find yourself in hot water. You must have a minimum of £5 million in employer’s liability insurance before you begin to hire employees.
Pay your new employee
What you decide to pay your employee will depend on your funds and the level of skill required, but you must pay the National Minimum Wage as a minimum.
Before you can pay your new employee, you will need to register with HMRC as an employer – this can be done at least 4 weeks beforehand. You will also be required to pay National Insurance contributions on their behalf and deduct any tax before you pay their wages.
Help from Nixon Williams
Wherever you are in your career, we’ll take care of your finances so you can focus on what matters – your company. You can find more about what’s on offer from Nixon Williams here.