Hiring Staff in 2021 – a complete guide

When hiring staff, the process can be stressful and time-consuming. But, for businesses to grow, hiring staff is essential. This guide will give you some helpful tips and advice when it comes to hiring new employees.  

Why Do Companies Hire Staff? 

Businesses hire new staff for many reasons. As long as it is finically possible and won’t cause a huge strain on the budget, there are plenty of benefits to recruiting new employees. Some of the main factors that make companies hire staff are: 

  • New skills and personalities needed. 
  • Upcoming opportunities may require new staff. 
  • Seeing growth in the business. 
  • Replacing leaving employees.  
  • Fulfilling specific new roles.  

 What Do I Need To Consider When Hiring Staff? 

Hiring new staff can be challenging and there is a lot to consider. This simple list gives you some points to think about, making the process stress-free. 

  • Can they work legally in the UK? – When hiring new staff, it is a good idea to ensure the employee is legally able to work in the UK. Other checks may also be needed.  
  • Pension scheme? – You may need to automatically place your staff onto a workplace pension scheme.  
  • Give the employee details of the role – Terms and conditions should be sent to the employee, giving them the details of the role along with a written statement of employment for staff working more than one month. 
  • How much are you willing to pay? – Remember that staff must be paid the national minimum wage. 
  • Is a DBS check needed? – Some roles may require a DBS check, for example, positions in security and people working with vulnerable people. DBS checks were previously called CRB checks. 
  • Advise HMRC – Up to 4 weeks before your first payment to new employees, you must contact HM Revenue and Customs, letting them know that you’re registering as an employer.  
  • Employment insurance – Employers’ liability insurance is required when you become an employer.  

What Are The Benefits And Disadvantages Of Hiring Staff? 

Unfortunately, when hiring staff, there are both pros and cons. It is always recommended to weigh up whether it is worth investing in new employees, as there is a commitment to hiring as well as the financial expenses. But if your business is growing, hiring staff could be the next step towards further growth.  
 

Benefits Disadvantages 
New ideas and skills – New staff can bring a breath of fresh air to your business. They may come with personality and creativity that hasn’t been seen before in your workplace. Along with extra experience and knowledge, new employees can help to grow your company.  Managing more employees is challenging – When hiring new employees, remember that these members of staff will need training and monitoring to help them get up to speed. This can be draining and time-consuming, especially if it is a technical role with lots of skills needed.  
Can increase profits – With limited staff, you limit the amount of work that can be completed. When you increase your business, more staff give you a higher rate of production. When your business sees growth, the only way to keep up with new demands is by hiring more staff.   Hiring successful employees can be tricky – When it is your first time hiring a new employee, the process can be overwhelming. There are costs for advertising the openings, especially with the popular websites setting higher prices. Along with these costs are the time costs required for interviewing.  
Frees up time for yourself – We all know running a business can be stressful and take up the majority of your time. New employees can give you some more time to relax for yourself, taking over the workload. Taking a break, such as a holiday, while staff cover for you, can be great for your mental health and coming back stronger than ever. Commitment to paying salaries – If you see huge growth in your business, recruiting is usually a good idea. However, as the business world is always changing, you could be committed to paying more employees, even when business starts to decline. Sometimes, outsourcing can be the better option, but this is all depending on your requirements and how well your business is performing.  

How Do I Hire The Right Staff? 

Now you know what to consider when hiring staff, the next step is recruiting. This can be daunting, as we know your business is important to you and hiring the wrong staff can take your company in the wrong direction. Here are 3 tips for hiring the right staff.  

Ensure goals and expectations are set – When hiring new staff, defining expectations is a good place to start. From the first day, new employees should know their roles and responsibilities, as well as where the company wants to be, along with what standards you want to keep. From the interview, potential candidates should be advised of the businesses goals and how you’ll reach them. This creates respect and trust with new members of your team.  

A clear job description is required – If you’re not providing a clear job description, you may firstly drive away potential perfect candidates. Secondly, there is a possibility of receiving requests from people who may not be suited to the role. In the description should be the skills required, along with how much you’re looking to pay. Monitor the different weaknesses and strengths of candidates, giving you something to look back on throughout the interviewing process.  

Keep an open mind – Sometimes, employers can get too caught up when looking for the ‘perfect employee’. This can lead to disregarding candidates who don’t meet the specific requirements on a CV or previous experience. However, many successful appointments come from people who lack specific skills that were once needed for the role. They can bring personality, creativity and drive to your business that other people may not have. Allow time to interview as many candidates as you can, talking to a mix of characters. You might be surprised at the talent that is out there.  

What Type Of Employee Contracts Are There?

Permanent contracts – Permanent employees can be either part-time or full-time and these staff will have an ongoing contract with your business. This means that you will be required to give certain commitments, such as sick pay and holiday pay. These terms will be in the contract they sign with your business and may depend on the amount of time they’ve been at your company. 
 

Pros Cons 
You’ll create loyalty, plus an understanding of what to expect from each other.  There are obligations and there is less flexibility than other options. 

Fixed-term contracts – These contracts are for a specific time, examples being one year, six months or even one month. Fixed-term contracts could also be until a project has been fulfilled or a task completed. Similar to permanent contracts, obligations such as sick pay rights will continue, but only for the length of the agreed contract. Fixed-term contracts are great for seasonal businesses or companies needing some help on a specific project.  
 

Pros Cons 
Employees can be used when needed to suit your business. There will still be obligations and once the contract expires, they could look elsewhere. 

Zero-hours contracts – For businesses that only need extra employees at certain times, this is usually the option. Zero-hours contracts work in the way of asking for people to work whenever you need them. So, they’ll only be paid for the time they work, which may be for one day a week for that certain amount of time. However, the employee is not required to accept the work if it doesn’t work for them. Unpredictable businesses are suited to these contracts where staff are only needed for short time frames.  

Pros Cons 
They can be cost-effective and flexible to your business. Unpredictability for staff and can create an ever-changing environment. 

Temporary agencies – This option benefits businesses who require an idea of how many staff they’ll need for a project in a low-risk way. There are smaller commitments, but it does come at an expense, as they are usually at a higher price due to agency fees. Temporary staff are required to have safe working conditions and breaks like any other contract. It should also be noted that after 12 weeks of working at your company, temporary agency staff are entitled to the same basic benefits and pay as your permanent employees.  
 

Pros Cons 
There are fewer obligations, plus staff are available in a shorter time frame.  You may see a variety in the quality received and it can be more expensive. 

Freelancers – Freelancers are becoming a more popular option in the world of today. These include consultants and contractors too. This is a great way to hire professionals to complete a certain task in their specific field. Freelancers are self-employed, so they’re selling their talents to your business, making fewer obligations for yourself. When hiring a freelancer, make sure to check they have defined themselves as self-employed, as there can be complications with HMRC.  
 

Pros Cons 
Can be a lot cheaper, as well as providing professional quality in their expert field with usually years of experience. Less time to build relationships and they could have less interest in your company than full-time staff. 

 
 
What Is The National Minimum Wage Worldwide? 

Country National Minimum Wage Currency 
United States 1,256.7 
United Kingdom 1,444.7 £ 
Ireland 1,723.8 € 
Portugal 775.8 € 
Spain 1,108.3 € 
France 1,554.6 € 
Greece 758.3 € 
Germany 1,614.0 € 
Japan 152,663.3 ¥