SAFE JOBS, SAVE LIVES!
Updated: Aug 16, 2020
TIPS TO HIRING EMPLOYEES & PAYROLL MANAGEMENT
So your little after-hours project is not so little anymore, or you’re currently looking for office space and will need a team of support staff to take your business to the next level. You’ll need to start hiring and your thoughts are, “Who, where, when and how much?”.
We’ve come up with a few tips to help you out with the process. Or alternatively you can spend $100s if not $1,000s on speaking to a payroll professional on what you should do. Save your money and follow these tips below.
1. Is there a need? In almost every company I’ve been in and to, I’ve noticed 1 constant in all of them, deadweight. That employee that’s just not worth their weight in gold to the company, let alone the salary they are receiving. Many companies hire for a position because they require a couple of seemingly skilful tasks to be performed when in fact, it can be done by another employee. Or better yet, the task can be outsourced for a far cheaper amount. So, before you begin looking, ask yourself, “Do I really need this role?”.
2. How much of a need? You’ve decided that you need to have this role in-house. The next step is deciding if you need this person 5 days a week? Many companies are moving into hiring permanent part-time roles as they’ve realised that they don’t require the role for 40 hours a week. And vice-versa, there are many individuals who would like to have some income but do not want to devote 40 hours or 5 weekdays to their job. Examples of these are new mothers returning to the workforce after maternity leave, seniors who just want to keep, as my mum says, “their brains working”, and students who want to earn some income to supplement their studies or gain experience.
3. When to pay? Cash flow is the number 1 reason many companies go out of business, especially start-ups. There are many acceptable pay frequencies that can be used. My personal favourite is fortnightly. It’s the “sweet spot” between 52 payments a year (weekly) and 12 payments a year (monthly). Also, surveys have shown that employees prefer this as they do not feel like they are getting cheated with the monthly system (the whole “there’s extra days in some months” thing), and also, they are able to manage their funds better. From a company’s point of view, keeping your employees happy is vital, and having 2 pay-runs a month (3 in some) isn’t too much to ask. On the other side of it, try to ensure that your credit terms line up with this. If you provide 60 days credit to your customers but must pay salaries weekly, you’re setting yourself up for a serious cash flow problem.
4. How much to pay? Firstly, check job sites to find out what the market is offering for the role. Next, download Salary Guides from recruitment agencies. Large recruitment agencies create a salary guide annually with many going into detail of state specific guides. Next, factor it into your annual budget. Make sure that you can afford this new role and that it will bring value to the company. Lastly, and this is one that many companies do not think about, perks. Ensuring that your budget includes benefits and bonuses, saves you the trouble of having to ponder over it later. Also, you’ll want to keep great employees and there’s no better way.
Remember, there are many companies that provide outsourcing solutions. As a customer, you’re paying them to do their best work and that is great value. Whilst it is nice to see that your company is growing, don’t just hire for the sake of it or just to complete a couple of tasks. Ensure that there is a real need and check market rates. Most of all, treat your employees well.
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Author: Akash Devasar & Co. | We speak numbers | https://www.adevasar.com