Ready to grow your team? Hiring employees can be intimidating yet rewarding for first-time business owners. The right team can be crucial to your business’s growth and success. But don’t worry, we’ve got you covered!
This blog article will give you an overview of the standard hiring process for small businesses. First, we’ll define your role and obligations to your employees as an employer. Then, we’ll talk about attracting candidates and onboarding new staff members.
Understanding your responsibilities as an employer
Australian employers must understand their obligations to employees. These include complying with labour laws and maintaining a positive work environment. The basis of your compliance should be the Fair Work Act, applicable Modern Awards, and the National Employment Standards (NES).
Before you start hiring employees, make sure you understand the following concepts:
Payroll and taxation
One of the most basic expectations for employers is to accurately pay employees based on hours worked, salary, and/or commission. This includes calculating PAYG withheld, overtime pay, and superannuation. These need to be done consistently and within a standard pay cycle deadline.
With employees, you will need to maintain accurate payroll records for at least seven years. Companies can do this with payroll software, which the Australian Taxation Office mandates for reporting Single Touch Payroll (STP).
Besides recordkeeping, regular audits are best to ensure total compliance with payroll and tax laws.
Leave entitlements
As an employer, you must understand and manage various leave entitlements effectively.
Here are the different types of leave entitlements for Australian employees:
- Annual leave: This is the primary type of leave, and it’s accrued over time. The minimum entitlement depends on the type of employee and industry based on Modern Awards.
- Sick leave: Employees are entitled to a certain number of paid sick leave days per year.
- Long service leave: This is a form of paid leave accrued over a specified period of employment, typically 10 years.
- Parental leave: Both primary and secondary carers are entitled to parental leave.
- Unpaid leave: Employees may request unpaid leave for various reasons. Examples of these are carer’s leave, compassionate leave, or study leave.
You are obligated to track and calculate leaves for all employees. This ensures their payroll records accurately reflect their leave balances. Make sure this information is in annual leave reports, which should also be accessible to employees.
Workplace health and safety
All employers are required to comply with the Work Health and Safety Act of their state or territory. You are responsible for identifying potential workplace hazards and their risks. Each risk needs a standard operating procedure, and employees should be trained to follow it. This is especially important for businesses that use machinery, equipment, or hazardous substances.
In some industries, you must hire a workplace health and safety officer to enforce the guidelines and procedures. Trained personnel should also run first aid facilities. They can help you maintain records of incidents, injuries, and illnesses.
Employee data privacy
As an employer, you handle personal employee information, and you’re obliged to keep it private. Personal information includes names, addresses and contact details, dates of birth, tax file numbers, medical records, and bank account details.
Newly hired employees should be able to provide consent to collect their information for business use. They should also be able to access, update, or remove their information. Ideally, you should prompt updates periodically for accurate recordkeeping.
Apply appropriate cybersecurity measures to protect employee data from unauthorised access or loss. There should also be a set process for disposing of the data when the duration of employment ends.
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How to hire employees: 5 steps to follow
Once you understand your employer’s obligations, you’re ready to start the hiring process. Hiring employees can be complex, but every step is necessary to hire the right person for your team.
1. Create a clear job description
A well-crafted job description sets clear expectations for applicants, so it is crucial to attract the right talent. There are tons of job description templates online, but they should cover the following elements:
- Job title
- Company overview
- Job summary
- Key responsibilities
- Required qualifications: Essential skills, knowledge, and experience needed for the position
- Preferred qualifications: Other qualifications or skills that would be nice but not mandatory
- Working conditions: Work hours, physical demands, travel requirements, compensation and benefits can also be included.
When writing a job description, use clear and concise language. While using technical language for technical roles is tempting, you don’t want to risk confusing potential candidates. Prioritise representing your company accurately to give candidates a good first impression.
2. Screen candidates for skill, experience, and cultural fit
At this point, you will have gotten CVs, resumes, cover letters, and portfolios. Review the documents submitted by applications against the job description. For roles that need specific skills, consider conducting technical tests or assignments.
To identify strong candidates, use a checklist as you evaluate applications. Once you have a shortlist, conduct quick phone interviews to assess their communication skills. You can also validate their information and schedule the next interview.
3. Conduct effective interview processes
Job interviews are a two-way street. They’re an opportunity for you and the candidate to assess whether working together is a good idea. Prepare a set of questions to ensure the interview stays focused and relevant. The main goal should be to get to know the candidate well.
Start with an overview of the position, then ask candidates to introduce themselves. Pay attention to details you may want to ask about later in the conversation. Take note of non-verbal cues that may help you evaluate whether the candidate is a good fit.
Cultural fit is often overlooked, but it largely impacts employment experience. This means that employees should be able to work well with your business’s values and work well with existing staff. Otherwise, employees will come and go fast, hurting business operations and budgets. So, ask about work styles, collaborative abilities, and problem-solving approaches.
4. Check employee references
Ideal candidates should be honest about their skills and experience and be great coworkers. Employee references let you verify a candidate’s work history, skills, and character. After the interview, let the candidate know you plan on contacting their references. This helps protect their privacy and build trust.
Like the interview, prepare a structured list of questions. This will help make sure you get the information you need. Focus on the candidate’s job performance, ethics, and ability to work under specific conditions. Sometimes, you may also ask about concrete examples of their work. While references are usually from past employers, colleagues and clients may also give good insights.
5. Finally, make an employment offer
Now comes the most exciting step: You’ve done your screening, conducted interviews, and found the perfect candidate. It’s time to make a job offer!
First, communicate the initial offer with the job title, salary, and start date. Include other essential terms such as non-monetary benefits. Express your excitement about the candidate joining the team – it’ll also help them look forward to it. You should expect the candidate to negotiate all these aspects but set boundaries on your capacity to meet their requirements.
If all goes well, you can send a formal offer letter. Include critical information like the probationary period, training, and access to benefits. Specify whether the position is full-time, part-time, or contract-based. Send over the offer letter with a clear deadline for acceptance.
Once the candidate accepts the job offer, start working on the employment contract. Congratulations – you just hired an employee!
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Tips for onboarding new employees
A well-prepared onboarding process sets the tone for new employees. A positive experience will lead to great performance. Follow these best practices to help your new staff member start well!
Use forms for new employee
Hiring an employee requires following legal rules. You need several documents to make the employment official. Before starting, make sure the employee has signed a contract and given you the required tax forms. You may also need to assign them a payroll number and get their banking and retirement savings details for payments. Finally, get the employee’s preferred contact person in case of an emergency.
As mentioned above, it’s important to get the employee’s consent to collect and store their information. A formalised consent form builds trust with new employees and ensures you follow good data privacy standards.
Prepare everything before their first day
Ensure the employee’s workspace is ready with all the necessary equipment. Remote employees should ensure they have access to all the tools they need to perform their roles. Prepare a welcome package with company policies, the employee handbook, and relevant documents.
You may plan a detailed schedule for their first week to get them settled in. Make sure they dedicate time to meeting new team members and training.
Introduce the workplace and team members
New employees should meet other employees who are important to their job. This helps them learn the company’s goals, purpose, and plans. It also allows them to start building relationships with others. This will help them when they need to work together. If your team is not too big, assign an experienced team member to guide and support new employees.
If your employee is working in an office, give them a tour of the layout and key facilities. This will help cut down on questions they may have once they start working on their own tasks.
Unlock business growth by recruiting the right employees
Hiring the right employees is very important for building a successful business. By following the steps, you can increase your chances of finding the perfect person for your team. Define the role, attract candidates, conduct effective interviews, and onboard new hires.
Remember, the hiring process is an investment in your company’s future. It’s essential to balance efficiency with thoroughness to ensure you make informed decisions.
To streamline the hiring and onboarding process, consider utilising payroll software like Payroller. Payroller help you manage employee records, run accurate payroll, and comply with Australian labour laws. With features like employee apps for timesheets and annual leave reports, Payroller simplifies HR management for small businesses.
Combine effective hiring practices with the right tools, and you can build a high-performing team for your business’s success!
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