We are pleased to continue our support and sponsorship of Engage Exploit Invest (“EIE”), Scotland’s premier annual investor showcase of high-quality technology, life science and energy companies taking place on Thursday 12th May 2016. EIE attracts over 160 investors from around the World and gives investors and serial technology entrepreneurs the opportunity to meet with a large number of Scotland’s high-potential companies in a short space of time. It offers a terrific opportunity to the best of our new companies to get intensive presentation training and to showcase their companies to an international audience. You can follow EIE on twitter next week by following #EIE16.
The below blog post was drafted with those companies pitching for investment at EIE in mind but some of the tips will be relevant for all existing and potential employers.
Developing your startup business to a point where you’re ready to employ someone is a real achievement. If you haven’t already reached that stage, hopefully a successful pitch at EIE will soon put you in a position where you are able to do so. Recruitment is also a bit daunting if you haven’t done it before, and comes with a lot of responsibility. The following five tips should help guide you through the process.
From our experience, the questions a small business should ask itself are:
Assuming you’ve decided you do need an employee, recruiting is a big step for a small business but taking on your first staff member is a special milestone. It’s a cliché, but good people can be your most valuable asset. You need to find the person with the necessary skills, knowledge, expertise & qualifications to deliver business objectives. And it’s crucial to have the right person in the right place at the right time. Employing the wrong person or the right person at the wrong time can prove disruptive and costly!
In order to find the right person, it’s important to have an effective recruitment process, which creates a positive image of the business. Applicants are like customers so you should treat them in the way in which you would like to be treated.
Once you’ve found the right person you should then register with HMRC (in good enough time before you have to give the employee their first pay cheque). You normally need to register as an employer with HMRC when you start employing staff and you meet certain conditions. Remember that you must register before the first pay date. Registration can be carried out online on HMRC’s website.
You’ll also need to set up PAYE (Pay As You Earn). This is the system used by employers to handle tax and National Insurance contributions due on employees’ pay. Detailed PAYE tax calculations and processes can be complex, but payroll services or software can make things much easier for you so may want to outsource PAYE to a payroll service provider (your accountant may offer this, often on a fixed fee basis).
So, you’ve done the job description, advertised, interviewed, registered with HMRC and set up PAYE. You now need to decide on a successful candidate, offer them the job and then send them a written job offer. What information has to go into that offer?
Remember that the Statement of employment particulars must be given to employee within 2 months of them starting. The statement must contain the specific information such as pay, hours, holiday entitlement, job title, place of work, sick pay etc.
As mentioned above, taking on an employee is a significant commitment. Once the applicant has accepted the job, this is just the start of the relationship. It’s then important to carry out a thorough induction and then ensure that the employee is properly managed and nurtured through training and regular appraisals in order to make the most of their potential.
If you would like to discuss your plans for recruitment further or would like to find out more about Holistic HR, please do not hesitate to get in touch with Hannah Roche at MBM Commercial. We also work closely with Mazars, McGill & Co, WorkbaseHR and Eden Scott should you require further guidance in relation to accountancy, immigrations advice, HR software or recruitment.