HR Basics for New and Small Businesses

HR Basics for New and Small Businesses

Starting a new business or running a small business is exciting, liberating and, at times, more than a bit challenging! No one said taking on this challenge would be easy but then, when you're dealing with the intricacies of people, is it ever easy?

So you've decided to hire some people to join your team. There are a few things that you should be thinking of (if you haven't already). Let's jump right into a prioritised list so you can tick them off as you complete them. This will help keep you focused on the next steps so you’re one step ahead the whole time!

Remuneration

Find the Modern Award most closely matches your industry or occupation for the vacancy and use applicable Award rates as your minimum. You cannot pay below these rates.

Consider the National Employment Standards which apply to most employees in Australia. Employment conditions cannot be less than those provided for in these standards.

AnEmployment Contractmay be prepared which contains any provisions that are not included in the relevant Modern Award already, or if provisions are being offered that are above the Award. It is important to note that conditions in any Employment Contract may not be less than those provided for in the National Employment Standards or the Modern Award.

Job Analysis

Determine where an additional resource(s) can add the most value in your business?

Prepare a basic Position Description to create a clearer image of exactly the skills and experience you need the person to have.

Consider some of the qualities or behaviours that would suit this role and your business.

Recruiting

Read our article called Selecting the right candidate – art or scienceto understand the types of things you should be looking for in a candidate.

Consider the type of person you want in your business. What are their values, attitude and mindset and put together some questions to try and draw that out in an interview(Sample questions to discover values).

Advertise the role in local and metropolitan newspapers and/or industry newsletters and publications with a clear closing date and what you require (i.e. please include a copy of your current resume)

Prepare your interview questions based on what type of skills, experience and attitude you want the person to have.

Interview anywhere from 3-5 candidates (but only 4 and 5 if you can’t possibly rule them out)! Use anInterview Guide to record and rate key points from responses for later reference. If there are other employees or partners in the business, it is a good idea to have more than one interviewer for a more rounded view.

It is good practice to contact referees for your top two candidates as the references may provide a point of difference. Here is a Reference Check Templatefrom Business Victoria to assist. It is not necessary to ask all of these questions, although it is recommended to ask some specific questions around any potential areas of concern that you discovered during the interview.

Prepare a written Letter of Offer of Employment for your chosen candidate to consider and sign to accept the position.

Ring the candidate and offer them the position verbally over the phone.

If they accept,prepare and send pre-employment paperwork. The Letter of Offer may be accompanied by the relevant paperwork or the paperwork may be provided once the offer is formally accepted. It should include:

Tax Declaration (forms available from any Postal Outlet)
Confidentiality Agreement
Fair Work Information Statement
Privacy Agreement
Superannuation Choice of Fund Form
Code of Conduct

Please ring any candidates that you interviewed personally to advise them they were unsuccessful. This is a courtesy that will set you apart from many employers who send out the dreaded ‘letter’.

Orientation and Training

Once you’ve hired your new addition to the team, you will need to provide them with some information about what they can expect as an employee of your company and what you expect of them, including:

Relevant Employment Policies and Procedures (even if they are one-page statements rather than lengthy documents). These may include Privacy Policy, Performance Review, Counselling and Discipline, Equal Opportunity, Leave Management, Email and Internet Usage, Drug and Alcohol Policy, OH&S Policy, Motor Vehicle Policy and Usage Agreement (to name but a few!)

Leave Entitlements and how to apply (annual, sick, long service leave, parental, carer’s, bereavement)

Probation Period (usually 3 months)

A probationary period is normally three months. In some cases, it may be reasonable to instate a longer period due to the nature of a job.

An employee should be advised of the likelihood of their probation period being successful at least one week prior to the expiration of the period. Fair Work Australia has prepared a number of excellent employment templates, including a Letter of Successful Probation Period.

If there are concerns with the employee during the probation period, the employee should be advised and offered an opportunity to improve. If there is no improvement, they should be given at least one week’s notice via a discussion advising them of the unsuccessful probation review\. They should then be provided with a Letter of Unsuccessful Probation Period.

And there you have it, your first three months with your new employee and hopefully it’s all gone smoothly so far!Managing people is a continuous cycle of learning and growth – for employees and managers alike.

We trust this resource has been valuable but if you still have questions,

feel free to contact us and we’ll try to help.