Taking on staff - the options

Recruiting new staff

Before spending time and money on employing someone new, you should weigh up whether you really need to recruit new staff. To do this, look at your staffing needs in relation to the wider objectives of the business.

You may need extra help immediately or you may simply be thinking about your future staffing requirements. But in both cases it's valuable to plan as far ahead as you can.

You should consider why you're looking for extra help and how long you will need it for.

Ask yourself the following questions:

• Are you considering taking on your first employee to help you grow your business or handle an increasing workload?
• Are you replacing an employee who has left? If so, why did the previous employee leave and what skills and experience have you lost?
• Do you need to bring in a new skill to your business that none of your existing employees has?
• Has your workload increased? If so, is the workload likely to continue or is it just a temporary increase?
• What will be the impact of taking on a new staff member? Do you have somewhere for them to sit? Will you need to buy new equipment for them?
• Do you need cover for yourself in the long term?

If you are taking on your first employee you may be required to register as an employer with HM Revenue & Customs (HMRC). You can find information to help you decide whether you need to register in the HMRC information pack for prospective employers, 'Thinking of employing someone?'. Alternatively, you can call the HMRC New Employer Helpline.

The information pack also details all the information you will require to register as an employer and guides you through the registration process. Download the leaflet 'Thinking of employing someone?' from the HMRC website (PDF, 541K) - Opens in a new window.

You can submit your details via email to register as an employer using the new HMRC email service. Find out how to submit details via email for new employer registration on the HMRC website - Opens in a new window.

You are also required to check whether any potential employee is eligible to enter, stay and work in the UK. See our guide on ensuring your workers are eligible to work in the UK.

Alternatives to taking on new staff

Since recruitment can be expensive and time consuming, other options you could consider include:

• re-organising the company structure
• sharing work among existing employees
• promoting existing staff
• asking part-time employees if they would consider full-time work
• improving the efficiency of the business, perhaps by rearranging tasks
• offering overtime
• adopting flexible working arrangements, eg allowing some staff to begin earlier/later to provide cover for a longer part of the day
• hiring temporary workers from an employment agency
• offering graduate internships through Graduate Talent Pool

Subjects covered in this guide

• Introduction
• Recruiting new staff
• The best ways to take on extra people
• Full-time or part-time employees
• Fixed-term contracts
• Taking on agency workers
• Freelancers and outside contractors
• Directors and managers
• Here's how I used the My Business tool to help grow my business

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