Enterprise Nation

Many of us start a business based on our particular area of interest or specialism. Yet one of the thrills of running a business is we soon learn about different areas, whether it be finance, marketing or IT. Karen Kennard is a specialist in recruitment and offers advice to those of us recruiting for the very first time.

To consider

So what are the key things you need to consider when thinking about taking on new employees?

Whether you decide to employ someone or have them working as a self employed contractor, you have certain obligations to that person, to endeavour to create a trouble free relationship.

Recruitment & Selection

It’s important to use methods which are fair and do not discriminate against people based on age, ethnicity, gender, sexual orientation, race or beliefs. A clear, objective and detailed description of what the job consists of is essential to ensure the person can do the job. Including required qualifications and skills will also enable you to make a decision about whether the person can do the job.

When carrying out interviews, plan your questions carefully and use the same questions with all interviewees, so a direct comparison can be made between answers. Don’t forget, write to everyone telling them the outcome of their application and interview. They may ask for feedback - make it factual as this will help avoid any unwanted discrimination claims.

Contract of employment

Once you have offered someone a job, even verbally, it is considered to be a contract of employment. In addition, by law, all employees must receive a written statement of terms and conditions within 2 months of starting work. At a minimum the written statement must include:

• Date when employment began
• Date on which the employee’s continuous employment began
• Pay rate or calculation methodology
• Pay frequency
• Terms and conditions relating to hours of work, including normal working hours
• Terms and conditions relating to entitlement to holidays, including public holidays and holiday pay
• Job title or a brief description of the type of work the employee is employed to do
• Place of work or an indication that an employee is required or permitted to work at various locations

In addition, employees must also receive information about:

• Terms and conditions relating to incapacity for work due to sickness or injury, including any provision for sick pay
• Terms and conditions relating to pensions and pension schemes
• Length of notice the employee is required to give and receive to terminate the contract
• Where the employment is not intended to be permanent, the length it is intended to last, or the end date if it is for a fixed term
• Any collective agreements, which directly affect the terms and conditions of employment, including where the employer is not a party, the persons by whom they were made.

Policies and Procedures

It’s useful to have documented policies and procedures from the start. Depending on the nature of your business, the priority for these policies may vary, but the themes which should be considered include: 

• Absence
• Code of conduct
• Intellectual property
• Health & safety
• Use of office technology
• Disciplinary & grievance
• Family friendly policies

These could be detailed in the employment contract, written as separate policies or combined into a handbook. Most small firms will not need a handbook, but once you have more than five employees, the health and safety policy must legally be documented and it is recommended that the others should be formalised as well.

Health & Safety

As soon as you employ one person, whether they are working remotely or in your home office you are obliged to ensure they are working in a physically and mentally safe environment. This includes doing health and safety risk assessments, providing appropriate direction and training if required and ensuring you are adequately insured as an employer.

In-house HR manager

Taking on an HR manager is not something many home businesses would consider which is why it’s useful to know that Karen from Flexible Skills Bank has partnered up with Donna Obstfeld of DOHR to provide a cost effective and flexible HR support service specifically for small and home based businesses.

Which means you can carry on with doing what you do best and let Karen and Donna take on the role of HR Department! 

Karen Kennard is Director of Flexible Skills Bank

Donna Obstfeld is Director of DOHR Ltd 

Together they have formed a special HR package for home businesses who want to recruit but aren't so sure on how to go about it.