time to grow? the when and how of hiring your first employee

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Consulting Excellence HR & Management Solutions Jackie Prendergast

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Presentation to the DCEB LINK! Network (a group of SME owners) on the issues surrounding the decision to hire a first employee.

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Page 1: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

Jackie Prendergast

Page 2: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

Page 3: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

How do you know the time is right?How do you get the right person?Your obligations to themTheir obligations to you – what to expectWhat if it doesn't work out?

AGENDAAGENDA

Page 4: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

How do you know the time is How do you know the time is right?right?

No time for business developmentYou can’t handle the work you haveCustomer service is sufferingToo busy to take on work you really wantToo much time on mundane tasksYou have identified an opportunity but haven’t the capacity to meet itNo time for holidays, health or family

Page 5: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

When might it not be right?When might it not be right?

You are not clear on what the demand will beYou have just started outIt is a temporary needYou don’t like additional paperworkNo time, patience or desire to train someoneYou are reluctant to share business information and secretsYou don’t have the space

Page 6: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

Other considerationsOther considerations

Are there any other options?Co-ownerFamily and friendsOutsourcingAgency workerIndependent contractorInternUnpaid “volunteer”Refer out “excess” business

Page 7: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

Other Options - InternsOther Options - Interns

Typically final year students or recent graduatesExpected to be developmental for themCan be anything from 6 wks to 1 yr

www.internabroad.comwww.i4s.euwww.internshipsireland.comwww.gradireland.comUniversities

Page 8: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

Other Options - Unpaid Other Options - Unpaid “volunteers”“volunteers”

Experienced individuals who work without payIf you give any pay must meet minimum pay Insurance issuePolicies and procedures – ensure in placeHave a form of contract – signed Issues for them with Social Welfare paymentsWhere?

www.talenttank.ieNetworksJob sites / boards/ clubs

Page 9: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

Can you afford it?Can you afford it?

Cost Benefit AnalysisProject increased sales revenueConsider following costs

WagesPRSIHolidaysInsuranceTrainingSpace, computer, work station, phone Uniform, business cardsVehicle, expenses, parking

Page 10: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

How do you get the right person?How do you get the right person?

1. Know what you need and whyThink about the future not just today Identify tasks, skills, competencies, attitudeConsider your own strengths and weaknessesWhat type of person can you work withDevelop job specification

Page 11: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

How do you get the right person?How do you get the right person?

2. Know where to source the personTalk to family and friendsUse your contacts and networks LinkedIn, Twitter, FacebookFor part-time try www.flexitimers.comJob sites, job clubs, Local Employment ServiceSpecialist skills?...associations/groups / trade journals

Page 12: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

How do you get the right person?How do you get the right person?

3. Know how to assess themShortlist and interview based on objective criteriaTrust your instincts when considering “fit” Consider psychometrics, aptitude tests, group assessmentsThorough reference checkProbation (built into contract)with agreed performance measures

Page 13: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

Your obligations to themYour obligations to them

Recognition of employment rights and compliance with law including:

Fair pay – at least minimum wage (€8.65)Written terms and conditionsSafe place to work including dignity at work, free from harassment or discriminationMinimum 20 days holidays (pro-rata) + PublicWorking Hrs and Rest periodsLegal deductions and payment re PAYE / PRSIAccess to pension

Page 14: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

Your obligations to themYour obligations to them

Fair and proper managementLead and give direction Good and ethical business practicesSet clear goals, targets (e.g. Induction), standardsTraining and development needed for jobAddressing under-performanceInformation on decisions that will effect employmentAcknowledgement, respect and trustObserve fair procedure

Page 15: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

Their obligations to youTheir obligations to you

Fair days work – perform to required standardTake direction / instructionHonesty , integrity and confidentialityAdherence to policies and proceduresOperating in a safe mannerTreat co-workers with dignity and respectCommitment to the business and its values and goals

Page 16: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

What if it goes wrong?What if it goes wrong?

Make sure probationary period built into contractSet clear goals, review regularly, make clear any required improvementsBe clear about consequencesFollow fair procedure – disciplinary/dismissalRemember cannot use redundancy to exit poor performerLearn from mistakes

Page 17: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

RecapRecap

How do you know the time is right?How do you get the right person?Your obligations to themTheir obligations to you – what to expectWhat if it doesn't work out?

Page 18: Time to grow? The when and how of hiring your first employee

Consulting Excellence HR & Management Solutions

Questions?Questions?