Hiring your first member of staff is a big decision. But it’s also easy to let untruths and bad information affect your choices. Quickbooks examine eight myths about hiring employees and unmask the facts you need to know.
Myth 1: They’ll cost too much
Reality: Sure, you’ll have to find the cash to pay their salary. But if you only ever work by yourself, you’ll be limiting your income forever. If you plan things right, hiring a member of staff will generate enough extra income to cover the costs.
Myth 2: You have to offer expensive benefits
Reality: To a large extent, it’s up to you what benefits you decide to offer your first members of staff. However, you should consider the salary and benefits package carefully, to attract and retain the best people. However, what you will have to offer is a workplace pension, under the new legislation of Automatic Enrolment. Find out more here.
Myth 3: You haven’t saved enough
Reality: If you don’t feel comfortable hiring a full-time employee, start smaller. There’s nothing to stop you bringing in someone on a part-time basis – and many people will relish the flexibility this gives them as an employee.
Myth 4: You’ll spend a fortune on National Insurance contributions
Reality: There’s no getting away from the fact that you’ll have to pay employer’s National Insurance contributions. But again, plan carefully: seek advice from your accountant and make sure you can cover the cost from the expected extra income.
Myth 5: You don’t have space to accommodate another person
Reality: Fast internet connections and modern computers make it easier than ever for your first employee to work from home much of the time. You could possibly meet regularly in a co-working centre or flexible office space.
Myth 6: Paperwork and payroll will take hours
Reality: Hiring your first member of staff will certainly increase admin, particularly in the short term. However, there are ways to manage this. Your accountant can offer advice, and you can automate processes with payroll software and other tools.
Myth 7: You’ll spend too long managing other people
Reality: While you will have to invest time with a new employee to start with, if you picked the right person at the interview stage, you’ll already have made sure they’re able to work independently and think for themselves – so you can both focus on key tasks.
Myth 8: Employees are lazy and more trouble than they’re worth
Reality: Oh, come off it! Most people will do a good job if they’re working somewhere they feel valued and appreciated. All the greatest companies are built on the efforts of great employees. It’s just a matter of finding the right people.
Always remember that you’re not alone when thinking about hiring your first member of staff. Talk to your accountant, your business contacts and any other trusted advisers. Once you break down the task of finding and hiring someone into smaller chunks, the whole process suddenly becomes much more manageable.
Find out more about hiring staff by visiting our Small Business Centre.
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.
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