Important tips when hiring
If you want to continue growing as an entrepreneur, there will be a point where it is impossible to continue to do the work alone. Sometimes you can make do with just interns. If this no longer works anymore, the moment has arrived to hire an employee.
There are some things that will need to be looked at when hiring employees. To prepare you for the hiring process, we have some tips for you:
1. Check if a labor agreement already exists
When you want to hire someone, check if the way you want to employ them is considered a labor agreement. Everything regarding the labor agreement you can read here. If there is no case of a labor relation, then there is also no case of hiring an employee. If you can speak of a labor relation, the search for an employee can start!
It is important to release that in addition to being an entrepreneur you will also become an employer and you must act like one. This needs a different mindset than the mindset of an entrepreneur, bringing us to tip 2.
2. Consider what it means to be an employer
As an employer, you are responsible for your employee and that entails different task. For example, you will need to give instructions, have performance reviews, knowing how to deal with sickness and you are responsible for the development of human resources.
Consider carefully before hiring employees what is expected of you and how you are going to carry out these tasks.
3. Ensure you have a good payroll administration
In addition, to the tasks mentioned above, you will also have to deal with the more ‘technical’ side of being an employer; the responsibility of payroll administration. Among other things, this means that you will need to issue out monthly or four-weekly salary specification (payroll administration) to your employee, submit payroll taxes with the Tax Authorities and pay for employee insurances. Everything about payroll administration you can read here
4. Establish the agreements in a labor contract
This may seem obvious, but it is important to establish the made agreements with your employee regarding labor times, vacation days, sickness, etc. in a labor contract. a labor contract offers clarity for both the employer and the employee.
5. Take sickness and labor disability in consideration
Of course, you hope it will not happen, but there is always the chance your employee will have a prolonged sickness or cannot work for other reasons. The first two years you will be obligated to pay 70% of the salary to the sick or disabled employee. This is a great risk, especially for small businesses. It is, therefore, advisable to take private insurance for sick leave so you are covered for the financial risks of a sick employee.
The employer is obligated to have a sick leave policy in place to counter labor disability. This means the employer is responsible for the possible replacement of the sick employee.
Hiring employees brings a change to the way you work. This change is necessary to grow and scale up. If you have any questions please do not hesitate to contact us.