Ready to Hire Your First Employee - Part 1
Congratulations! Your business is growing and you can’t keep doing everything yourself; you’re ready to hire your first employee but where do you start? Before you are ready to hire your first employee, there are some things you must consider first.
The cost of employing someone
There are many factors that add to the cost of an employee above wages alone. Take some time to consider the cost of superannuation, workers’ compensation insurance, leave, the cost of induction, training, uniforms/protective clothing, tools, plant and equipment, computer, workstation. It is wise to know what you are getting yourself into.
Full time, part time or casual?
How do you determine the type of employee your business needs? This will vary depending on a few key points. How many hours per week will you need your new employee and are these hours likely to remain the same week to week? Would your business benefit most from someone on a casual or permanent basis? Permanent employees will be entitled to annual leave, sick leave, public holidays and other forms of leave along with notice periods. While casuals aren’t entitled to paid leave, they do receive an extra 25 per cent in their pay and their employment can be terminated by either party without notice. If this is for a specific project you might only need an employee for a fixed period of time or engaging a contractor could be a more appropriate arrangement.
See next week for Part 2
Article courtesy of Inside Small Business Magazine