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BUSINESS FOR SALE SPOTLIGHTS

My employee is starting next week – what do I need to do?

You’ve found just the person that you’re looking for and they’re due to start in the next few days – what should you do? This guide sets out to take you through the key points. Not preparing properly will waste the effort that you have put into finding the right person.

Remember that your new employee will be feeling both excited and nervous – after all, taking on a new job can be quite stressful. It is your responsibility to make them feel at ease as quickly as possible. In this way you will start to benefit from the help they can give you even sooner.

Where they’ll work

You’d be surprised by how many people turn up to work on the first day and have nowhere to sit. This is very off-putting – and doesn’t say much about the business. So make sure that you’re ready. Things to consider are:

Getting in and out

Do you need to let anyone know that your new employee is turning up for work? For instance, is there a security guard or receptionist that needs to know when they’ll be arriving? If you’re happy for them to have keys, then have these ready, together with the alarm code if there is one. Some employers don’t allow new employees to take responsibility for locking up until they have completed their probationary period. What you do is really up to you.

Work station

Exactly where will they be working? If they need a desk, is it in place? Relevant equipment: what do they need to do their job?

  • Computer: if they’ll be using one, make sure it is set up.
  • Phone lines: it’s quite possible that you will need to arrange additional phone lines – make sure that you have arranged this with your service provider well in advance.
  • Mobile phone: will they need one? If so it would be nice to have this organised before they start. Having one on the same network as your own will probably be cheaper.
  • Stationery: make sure that their work station is well stocked – hunting for pens and paper can be very frustrating on your first day.
  • Business cards: not every one needs business cards, but if your new employee does, arrange for some to be printed in good time.
  • Inclusion in company details: if details of your staff are included in internal phone lists or on your website, ensure the new person’s details are included before they arrive.
  • Other relevant equipment: if there is anything else they’ll need, make sure that you have it ready for their first day.
Working practices

This section looks at the job that your new employee is going to be doing and the working practices that you want them to follow. It is important to establish the principles from the outset – not only to make them feel secure but to protect your business.

Their role

When the new employee arrives, you’ll need to spend a significant amount of time with them making sure they understand the business and their role within it.

Good practice would be to put a folder together containing the job description and any relevant papers that might help them get up to speed as quickly as possible.

For instance, if you have a sales brochure or leaflet, make sure that a copy of this is to hand. If there are any key presentations they should read, put them in the folder. What about clients? Draw up a client list – with all relevant personnel and contact numbers – so they know who you are dealing with.

Everything you prepare now will make sure the induction you give them on the first day is as effective as possible and no time is wasted.

Your work style

If there are only a couple of you working in the business you need to make sure your new employee really understands how you like to work.

Spend some time thinking about this – and jot down a few key points. For instance, how do you like to be given messages? How do you like appointments to be made – should they check with you first, or can they put them in your diary directly? What about interruptions – can you cope with constant interruptions or would you prefer to set aside time each day to go over things?

If this is your first employee the best way to set their work style could be to review the situation at the end of their first month and agree the ground rules then. But do make sure they know about anything particularly important to you from day one.

Business practice

How is the business run? This is not just about the practical aspects of the doing but also about the way in which things are done.

If you want to protect the reputation of your business it is vital that your new employee understands your working practices.

  • Customer care programme: satisfied customers will have been the key driver behind the success of your business to date. Be ready to share the contributing factors with your new employee. These might include:
    • Customer contact: how do you call them? How are messages recorded?
    • Order taking: do you have a set way of recording these?
    • Project management: how do you monitor the progress of a job and record any key decisions agreed between you and you customer?
    • After-care: how do you evaluate how a job went? Do you go back and see that your customer is happy with the work?
  • Financial management: good financial management is crucial for the health and well- being of the business. What responsibility will your new employee have? If they’re going to be involved in invoicing and credit control, have all the relevant files to hand. It would also be a good idea to arrange an appointment with the bank so that they can meet them during their first week.
  • Policies or procedures: at some stage you will need to produce a company handbook that details what your policies and procedures are on everything from sickness and absenteeism to grievance procedures to maternity leave. Be prepared to answer any questions your new employee might have.

Your obligations as an employer

There are a number of issues to consider:

Payroll

It will be easier for you if you have set this up before the new employee joins. Therefore when it comes time to pay them – at the end of their first week or month – everything will be ready.

If you are going to handle payroll yourself you need to get hold of the relevant forms from HM Revenue & Customs. Call the New Employer Helpline on 0845 60 70 143 and they’ll send you everything you need.

It may be simpler to get someone else to handle payroll for you. There are a number of companies offering such a service.

Health and safety

As an employer you have a duty of care towards anyone who works for you. You need to make sure that the workplace is safe as possible. Have a look around your premises – is there anything that seems hazardous? Are all electrical appliances in good order? Is all machinery safe to use? Is there a first aid kit close to hand? If there were a fire, what is the best way to get out of the building?

Overall, it is your responsibility to ensure that anyone working for you can do so in safety – and if necessary be able to prove that you have taken every step to ensure that this is the case.

If this is your first employee you don’t need to have a written Health & Safety policy in place – this is only a legal obligation once you reach five employees. However, you do have to display a Health and Safety Law poster, or give your employee a leaflet. Posters and leaflets are available from stationery suppliers, or your local Health and Safety Executive (HSE) office.

You also need to inform whichever organisation is responsible for your health and safety at work that you have taken on an employee. You will either come under the jurisdiction of your local authority or the Health and Safety Executive Area office. Your local authority will be able to advise you. Note that an inspector has the right to visit your place of work at any time to ensure the safety of the working environment, and enforce any legal requirements. For more information on health and safety requirements, you can call the HSE Infoline on 08701 545500.

Liability Insurance

A must-have. This will cover your legal liability should your employee be injured or get ill as a result of working for you. The amount of cover is usually unlimited but should be at least £2million. Once you have the insurance, you are required to display the certificate in your workplace.

Professional Indemnity

If your line of business means that you are providing clients with expert advice, you should consider professional indemnity insurance – if you don’t have it already. This protects the business should a customer have grounds to take you to court for damages caused by you – or your employee’s – misconduct or negligence.

Particulars of employment, policies and procedures

You may have sent these to the employee with their letter of offer. However, although you do not have to provide your employee with a written statement of particulars of employment until two months after their start date, it would be best practice to have this ready for their first day. For details of what should go in this, look up the Written statement of employment particulars on the DTI’s website: www.dti.gov.uk.

You can download "Disciplinary and Grievance Procedures" (code of practice) from www.acas.org.uk.

Personnel record

You’ll need to have certain information about your employee on file. It will save you time if you a have a form ready that they can complete on their first day.
Information that you will find useful to have on file is:

  • name and address,
  • contact numbers, and e-mail address if they have one,
  • date of birth,
  • National Insurance number,
  • the date they gave you their P45,
  • next of kin, relationship and contact details,
  • other relevant information e.g. any medication/ health problem that could affect work,
  • banking details; branch address and sort code; account number; name of account holder if not them,
  • make of car and registration, if relevant.
Assure them that all such information will be treated in confidence.

Under the terms of the Data Protection Act 1998, employees have the right to know what personal data you hold on them – whether it is paper based or held electronically – and how you intend to use it. Such information should only be used for legitimate reasons, such as PAYE, putting together their contract or contacting someone in an emergency. You don’t need the consent of workers to keep records about them, but you must make sure they know how you will use any information and whether you will disclose it. You must ensure that all data you hold is accurate, relevant and up to date at all times.

An Employment Practices Data Protection Code has been produced by the Information Commissioner’s Office to help employers understand and comply with the Data Protection Act. This can be found under Codes of Practice at www.informationcommissioner.gov.uk. For more information, you can also call the Information Commissioner’s helpline on 01625 545745.

Finally, make sure that you’re available for the whole of your employee’s first day. There is nothing worse than being welcomed then left alone for the day. Ideally, you should make time for lunch as well.

Useful contacts

Information Commission Office

Organisation that oversees the Data Protection Act.

W: www.informationcommissioner.gov.uk
T: Infoline 0845 345 0055

Department of Trade and Industry

Website contains information about employment law and employers’ obligations.

W: www.dti.gov.uk
T: 0207 7215 5000

Acas

Independent employment relations organisation

W: www.acas.org.uk
T: helpline 08457 474747

Health and Safety Executive

W: www.hse.gov.uk
T: Infoline 0845 345 0055.

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