Hiring the right team

If you’re having trouble making a decision about whether or not to take on staff, there are some questions you should ask yourself.

In other words, are you missing out on potential business because you’re not employing someone? If so, how much are those missed opportunities costing you? Could hiring someone increase your productivity and therefore your earning power?

It’s normal to work long hours when you’re getting your business off the ground, but burning the candle at both ends isn’t sustainable in the long run.

Take a look at your work-life balance and examine how you’re feeling on a day-to-day basis. Are you spending most of your days feeling harassed, overwhelmed, and stretched? Are you getting enough sleep? Do you have time to yourself, and time to spend with your loved ones?  

If you’re feeling frustrated because you’re spending too much time on other tasks and you can’t concentrate on what you’re really good at, it’s probably a good indicator that you need someone to take over those tasks.

For example, if your main strength is sales, it doesn’t pay for you to do routine administrative tasks. Why not pay someone to do the work for you and spend your time developing new business – while generating much more money in that same hour.

When people hesitate to employ staff, it’s often down to two things: 

• The amount of administration involved
• The fear of hiring the wrong person.

It certainly takes work to bring an employee on board, and the paperwork can be daunting. Issues such as compliance, PAYE, payroll tasks, KiwiSaver, and the various kinds of leave and employment agreements can feel like it’s more trouble than it’s worth. 

Meanwhile, hiring the wrong person can lead to issues, such as how to handle it if the employee turns out to be unsuitable and the possibility of personal grievances. 

These are all reasonable worries. But they shouldn’t be reasons to decide not to hire staff. 

If you’ve asked yourself these questions and your answers all point to the benefits of taking someone on, put your mind at ease by getting help. Use some of the resources below.

Talk to people you know who’ve hired staff and take on their advice. It’s a gift to be able to learn from others’ mistakes.

Becoming a member means you’ve got access to a wide range of support, including recruitment services and employment guidelines.

The EMA provides guides and sample forms on employment relations, as well as networking support and advice.

Inland Revenue is an important resource for employers. Their website's section for employers has useful advice. It’s a good one to bookmark and keep coming back to.

Once you’ve made the decision to hire an employee, the next step is to determine the type of employment that best suits your business. These are the most common options.

Most jobseekers will be looking for a full-time role to support themselves and their families, so you might get a wider range of people applying if the job is full time. 

And because they’re working in your business day in, day out, they’re potentially more likely to be loyal and to have a vested interest in your business’ future. 

This is a good option if you know work is on the increase, but not quite enough to justify a full-time position. Part-time hours can be a great option for people with children or other responsibilities, so this arrangement is often a win-win.

This works well for projects, as you know what your costs will be and when they’ll stop.

There are specific requirements for fixed-term roles, so it’s a good idea to chat to an employment expert to make sure your fixed-term contract has the right wording. You can also use business.govt.nz's Employment Agreement Builder.

Contractors are also good for project work, and can be more appropriate than fixed term if you have ongoing needs that change from week to week.

Employing a contractor, rather than an employee, can be helpful to track costs, as you’ll only be paying for the hours they work. However, you need to be sure of what really defines a contractor. Inland Revenue has an ‘Am I an employer?’ guide on their website to help you check.

Changes to the Fair Trading Act could affect your contracts with independent contractors and other businesses. Watch our webinar recording on these changes.