People

Finding the right people for your business

Most new businesses will find the issue of staffing a balancing act - juggling the need for more manpower with the business's ability to pay for it.

The price of taking on a new employee, in addition to salary, also includes recruitment costs, interviewing time, national insurance contributions, fringe benefits, possible training, pension costs, increased office equipment, use of telephone, and so on. Ask yourself if additional sales will generate enough income to cover an extra employee.

Is it skilled or unskilled labour you require? Full or part time? Salaried or commissioned? You may be able to find someone who is happy working on a freelance basis which will free you from paying national insurance contributions. Remuneration through commission is the least costly way of securing an extra pair of hands.

Knowing how to get the staff you want and where to look is crucial. You can advertise direct, through the local Job Centre or newspaper, go through a recruitment agency, or consult friends and business contacts.

Before you take someone on board, make it clear what is expected of them, ensure you're clear on what's expected of you.

Your responsibilities and rights as an employer

Employment law can be an intricate and complex subject, and you may wish to seek expert advice from your solicitor or accountant on how it affects you in particular. Alternatively, the Royal Bank offers mentor, a full personnel management system, which covers Employment Law.

Looking at it generally, one of the prerequisites is to provide your employees with a safe and healthy environment in which to work. You must also practice good industrial relations and behave reasonably in employment matters. And remember, part time workers now have the same rights as full time workers.

You have rights, too. Your employees must be competent, and work carefully and conscientiously. Any discoveries or inventions made during working hours belong to you. They must take care of your property and not act against your interests.

Employment is a two way street. You need your employers and they need you. If you take the time and the care to choose the right people for your vacancies, then one of the most important elements for success will be in place.

Your next task will be to provide your people with the infrastructure they'll need to do the job properly.