When you constantly feel the need to get help in running your business operation, that is when you know you need to bring in your first employees. When you let people into your operation, you let go a certain degree of ownership and you must take all the right steps to ensure the security of your operation. Below are the five steps you must take to before you employ staff for your business.
First, you must consider registering your business. This is important to legitimize your business according to all set guidelines like taxes, social security, etc. It is the foundation for your business that ensures your company’s stability as it grows.
Next, you must take business insurance covers for your company. Business insurance covers necessary for your company are numerous, but the most important insurance policies for your employees are general liability, professional insurance and workers compensation covers. The workers compensation cover takes care of medical bills and lost wages for employees who get injured or fall ill while at work.
The general liability cover protects your business from the various types of claims that can be made against your company. They may include; accidents, injuries, claims of negligence, property damage, medical expenses, libel, slander, legal costs, and faulty products. The professional insurance cover protects your business from lawsuits that may claim that your employees were ignorant in providing professional services, made errors or omissions.
Another essential for your preparation for your first employees is a training program that educates them on how they ought to do their work and the safety measures they must take while on duty. This is important to minimize the types of risks covered in the ideal insurance covers mentioned above. Make sure that you maintain a file for your employee’s training records and include signed sheets for every training module they take. This is evidence that you train them and use it as leverage for your business.
Draft an employee’s contract before hiring. Giving an employee a contract is important because it outlines the terms and conditions of their employment, their responsibilities, and their rights. It is great document for the both of you because it ensures compliance with all set guidelines.
When hiring your first employees, make sure that you get a competent team. Proficient employees will be hands-on their work and will give you room to grow your company. Competent staff also help entrepreneurs grow and improve their businesses through their input. Make sure that they understand your principles and objectives to ensure that you all work towards the same thing.
Finally, acquire a pay stub for their payments. A pay stub is necessary to explain the particulars of an employee’s salary and helps you to keep records for their payments. It is also evidence that you pay them and indicates what you pay for.
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