Employing that first staff member is a turning point for a growing business and continuing to make good decisions about the staff you employ is crucial to the success of your business. Recruiting involves a considerable investment in time, energy and money, and these three elements are at risk if you make the wrong decision. This guide aims to give you some ideas and tools to reduce that risk and increase your chances of selecting the right staff to help you grow your business.
Each employment decision is essentially about leveraging the time, skills and ability of people to increase the potential of your business. It’s worth investing time and effort in recruiting good staff because they can make a significant difference to the success of your business.
Get professional advice
At this point it’s worth emphasising that you should get professional advice to make sure the employment steps you take comply with the Employment Relations Act 2000 and other legislation. This is particularly important if you’re employing staff for the first time.
Correct procedures and clear expectations from the start can save you considerable costs later. For example, the Employment Relations Act requires all employers to have a written agreement with employees (either a collective agreement negotiated with a union, or an individual agreement).
A well-written agreement is a sound investment that can prevent problems and misunderstandings later.
Remember that a new employee is entitled to a copy of the individual employment agreement before they agree to it, and to have reasonable time to seek independent advice (such as an independent employment lawyer, employment and human resource consultant or employment practice specialist).
If the appointment is subject to a probationary period, then this must be stipulated in the employment agreement. Check with an employment expert that it accords with the provisions of the Employment Relations Act.
In particular, be aware of the conditions you will have to meet if the employee’s performance turns out to be unsatisfactory, such as fair warnings and help in getting the employee up to scratch.
Where to get help
The Department of Labour offers an Employment Relations Infoline (0800 20 90 20) and a website at www.ers.dol.govt.nz with much useful information, including a sample employment agreement.
The Employers & Manufacturers Association (EMA) offers a useful guide on hiring and terminating employment. Visit www.ema.co.nz or ask your Business Banking Manager for more details about the National Bank’s connection with the EMA.
You can also ask your industry sector organisation or your local chamber of commerce what specific employment help they offer members. You should also consider consulting a lawyer who specialises in employment matters - particularly if you are employing your first staff member.