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Taking on your first employee

New Employee Today’s blog post is very topical; our first employee started at Embarc this week. I know from working with small business owners how daunting it can be to take this first step, to move from one-man band to employer.

So here’s some guidelines based on my own experience.

1. Prepare a job description. You need to have a fairly good idea of what the person is going to do. This will give you an indication of the skills and experience required.

2. Do your market research. Find out how much is a reasonable salary or hourly rate in line with the job description you have prepared.

3. Advertise for your employee. This may be online, in the local newspaper or with a recruitment agency.

4. Review candidates, interview, obtain references and select who you think will be the best fit for your organisation.

5. Register with HMRC as an employer. This can be done online

6. Check all the other legalities are covered – you must have employer’s liability insurance, comply with minimum wage regulations and ensure your employee has the legal right to work in the UK.

7. Decide how you are going to run your payroll. You can use an agent or payroll bureau or do it yourself using either commercial payroll software or HMRC’s Basic PAYE Tools.

8. Once your new employee has accepted agree a start date, remembering to set aside adequate time for induction and training.

9. Your employee is entitled to receive a statement of employment particulars within two months of starting work. This sets out the main employment terms, including the job description, pay , hours of work and any disciplinary or grievance procedures. Here is an example which you may find helpful.

10. Enjoy the new experience!