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Recruitment for SMEs

Recruitment for SMEs

Taking on new staff is a big decision for any company. But finding the right person for a small to medium-sized business can be crucial. Recruitment is time-consuming and expensive and it's vital that the new team member fits in as quickly as possible.

Recruitment should always be part of your long-term strategy. Think carefully about why you want to take on a new person - is it to replace someone who has left or retired, or do you need help to deal with a sudden big order or seasonal rush? Are there alternatives that would be cheaper and less disruptive?

BusinessLink, the Government's one-stop advice centre, suggests you consider the following options before deciding to recruit:

  • re-organising the company structure
  • sharing work among existing employees
  • promoting existing staff
  • asking part-time employees to consider full-time work
  • improving the efficiency of the business
  • offering overtime
  • adopting flexible working so, for example, some staff can start earlier or later.

But remember that your workforce will soon spot if they're being exploited to save you the expense of recruiting.

What sort of person do you want?

Always find out why someone has left your business and consider what skills and experience you are losing. This may be a good time to take on someone with new expertise - for example, someone with knowledge of marketing or a particular production technique. Consider, too, alternatives to a permanent post:

  • Fixed term. This is an excellent way of dealing with a set period when you know you will need extra help, for example, to cover for paternity leave or if you expect a seasonal rush - perhaps before Christmas or Easter. Treat fixed term staff in exactly the same way as their permanent counterparts, including pay and conditions, benefits, pensions and the chance to apply for permanent posts. If anyone is on a fixed term contract for four or more years they may also technically be classed as a full-time employee. See the Department for Business, Enterprise and Regulatory Reform (BERR) website for advice
  • Freelance, consultants or contractors. So long as they are self-employed this type of worker brings with them the least amount of red tape. They are also an ideal way of meeting a rush of work or bringing in specialist skills such as designing or managing a website or launching a PR campaign
  • Agency ("temps"). You will have to pay a fee to the agency but they will take care of the admin and advertising side of recruitment. Remember that you are still responsible for their health and safety
  • Students/work experience. Taking on students can help you keep up to date with the latest industry developments and can be a way of assessing someone who may one day be looking for a full-time job. Specialist firms such as architects, website designers and musical instrument makers have found this a useful way of tapping in to "raw talent". But, no matter how keen and bright they are, they will still need to be supervised - at least at the start. Remember the rules governing the hours very young people can work.
  • Planning for their arrival

    Consider where the new person will sit and whether they will need their own computer or other equipment. Who will train them and how will that affect the trainer's own productivity?

    If it's your first employee you may need to register as an employer with HM Revenue & Customs (HMRC). You will also need a payroll system that deducts tax and National Insurance contributions from pay and forwards the money to HMRC.

    Your office or factory must be safe and healthy and you should have adequate insurance. Make sure that you are complying with rules on paid holiday, the length of the working week, rest breaks and sick pay (see Acas's website). Give staff a written statement of terms and conditions of their contract of employment. The BusinessLink website has an interactive tool to help you write this. Don't forget legislation concerning families and other types of possible discrimination.

    HM Revenue & Customs
    BusinessLink
    BERR
    Acas


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    9th July 2008
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