The key factors to consider when first hiring new staff

The key factors to consider when first hiring new staff

Employing new people for the first time can be daunting, especially when you are self-employed.

Hiring new staff is a multi-faceted process, and it begins and ends outside of those centre stage moments such as making that all-important job offer. 

There is a whole host of planning and preparation that needs to take place, from deciding what type of employee is needed to checking if someone has the legal right to work in the UK or that you have the correct insurance in place.

This quick checklist will help you make that process as seamless as possible:

• Decide how much you want to pay someone, remembering that any employee must receive at least the National Minimum Wage. You will also need to determine the specific tasks and skills required for the role, potentially by creating a job specification.
• Ensure potential employees have the legal right to work in the UK. Other employment checks, such as a DBS (Disclosure and Barring Service) check, criminal record checks, or checking someone’s work or education history is accurate, may also have to be carried out.
• Get employment insurance. Your organisation will need to have employers’ liability insurance in place to take people on.
• Your company will need to have payroll systems in place and make sure all necessary paperwork has been prepared.
• Inform HMRC by registering with them as an employer. This can be done up to four weeks before you pay your new staff and must take place before hiring anyone.
• Make sure details of the job, including all relevant terms and conditions, are sent in writing to new employees. If you are employing someone for more than a month, you will need to provide them with a written statement of employment.
• You may need to automatically enrol any new employee into a workplace pension scheme. Be sure to check if this is necessary and, if so, ensure it is done in advance of them starting their role.

The right insurance is essential to protecting your business

Making sure you have the correct insurance is vitally important when hiring staff for the first time. Employers liability insurance is needed in the event of a compensation claim by an employee if they suffer injury, illness or accidental death as a result of their employment.

All organisations need employers’ liability insurance from the moment they take staff on, whether they are fee-earners, clerical or otherwise, with the exception of sole traders whose only employees are close family members.

Policies must cover you for at least £5m and come from an authorised insurer.

You can be fined £2,500 for every day you are not properly insured, or £1,000 for not displaying your Employer’s Liability Certificate in the correct way.

As self-employment insurance specialists with more the 20 years’ experience, Qdos can offer you award-winning insurance cover. We can handle all your insurance needs, leaving you to take care of hiring the perfect employee.