First Employee - Advice? Protecting Myself?
Discussion
I've been looking for an assistant for quite a while, I've found an acquaintance of a friend who seems ideal, but it seems like there are quite a few things to trip up on, any general advice anybody has would be much appreciated.
I run an e-commerce store with all the stock on the premises, is there anything I can do to deter against any of it going walkies?
The business I run has quite low barriers to entry, in theory anyone with a few thousand pounds could start up, but it works because of specific product/sector knowledge which not everyone has, is there any way I can stop an employee quitting and immediately starting up themselves? Or even leaking info to someone else to do the same (I realise this is more tricky!)
If they turn out to not be very good at their job, is that a good enough reason to dismiss them?
Thanks in advance.
I run an e-commerce store with all the stock on the premises, is there anything I can do to deter against any of it going walkies?
The business I run has quite low barriers to entry, in theory anyone with a few thousand pounds could start up, but it works because of specific product/sector knowledge which not everyone has, is there any way I can stop an employee quitting and immediately starting up themselves? Or even leaking info to someone else to do the same (I realise this is more tricky!)
If they turn out to not be very good at their job, is that a good enough reason to dismiss them?
Thanks in advance.
I wouldn't worry so much.
The vast majority of people are honest, what to be an employee not a boss, and will treat you fairly if you do the same to them.
You could pay for a proper employment contract but for one you can probably get away with an offer letter setting out the terms and conditions, hours, pay, holiday, notice period, sickness.
You will need employers liability insurance, and a PAYE operation if you have to deduct income tax and NI. Also potentially workplace pensions.
The vast majority of people are honest, what to be an employee not a boss, and will treat you fairly if you do the same to them.
You could pay for a proper employment contract but for one you can probably get away with an offer letter setting out the terms and conditions, hours, pay, holiday, notice period, sickness.
You will need employers liability insurance, and a PAYE operation if you have to deduct income tax and NI. Also potentially workplace pensions.
So what you're saying is you dont trust your friend to not steal firstly your stock and secondly your idea.
Best not sell anything to anyone either incase they get wind of what you're doing, eh?
You probably need to loosen the reins a little on what you think is reasonable behaviour, you're a micro manager in waiting. If you're going to bring someone in it needs to be a two way street in terms of trust, they'll also be looking at you and your business and checking it's viable enough to invest time and experience into. Explain the role, the responsibilities and leave the rest to the contract.
If you dont want to deal with the HR/payroll side of it, there are loads of managed payroll companies out there who can sort this out for you, a few contracts I've had recently have pretty much been a cut and paste of a generic one off the Google, just the main changes to names and roles.
Best not sell anything to anyone either incase they get wind of what you're doing, eh?
You probably need to loosen the reins a little on what you think is reasonable behaviour, you're a micro manager in waiting. If you're going to bring someone in it needs to be a two way street in terms of trust, they'll also be looking at you and your business and checking it's viable enough to invest time and experience into. Explain the role, the responsibilities and leave the rest to the contract.
If you dont want to deal with the HR/payroll side of it, there are loads of managed payroll companies out there who can sort this out for you, a few contracts I've had recently have pretty much been a cut and paste of a generic one off the Google, just the main changes to names and roles.
I didn't say I didn't trust them, I was asking for general advice from people with experience, as I don't have any at all. If I'd asked for advice on motorcycle leathers, it doesn't mean I'm biting my nails over falling off.
Is it OK/legal to ask my employee to work a couple of weeks in hand, as a sort of retainer?
Is it OK/legal to ask my employee to work a couple of weeks in hand, as a sort of retainer?
Never trust anyone! I have never had problems but I know plenty of business owners who have - some are even their own family who are nicking the stuff!!
Your best bet is to start a stock control system IMHO.
You need this anyway really.
As for their rights, my main concern would not be if they cant do the job but more about their rights - what happens if she has a baby? Or is she older? Leave / sick etc. If this is your first employee its all stuff you are going to have to sort. Also I presume you have insurance. Pension provisions coming in soon etc.
You can, in general terms, let someone go with under 24 months service. Restrictions apply though.
Your best bet is to start a stock control system IMHO.
You need this anyway really.
As for their rights, my main concern would not be if they cant do the job but more about their rights - what happens if she has a baby? Or is she older? Leave / sick etc. If this is your first employee its all stuff you are going to have to sort. Also I presume you have insurance. Pension provisions coming in soon etc.
You can, in general terms, let someone go with under 24 months service. Restrictions apply though.
I've been in the same place and come out the other side - I had the same concerns.
Theft - Fact of life, a small minority steal. However, with one employee, they'd have to be silly.
Taking your knowledge - I was super worried by this once. Then I employed people. I presumed that everyone was an entrepreneur like me/you. The reality is that the type of people you will end up is such a role is someone who just wants to earn a wage and have a relatively easy life.
The advice I would give is to speak to Business Link, or get a good book about the practical side of employment law, and how to fill out and pay the relevant tax forms.
Now these two factors are much more pertinent considerations when taking on the first employee.
Theft - Fact of life, a small minority steal. However, with one employee, they'd have to be silly.
Taking your knowledge - I was super worried by this once. Then I employed people. I presumed that everyone was an entrepreneur like me/you. The reality is that the type of people you will end up is such a role is someone who just wants to earn a wage and have a relatively easy life.
The advice I would give is to speak to Business Link, or get a good book about the practical side of employment law, and how to fill out and pay the relevant tax forms.
Now these two factors are much more pertinent considerations when taking on the first employee.
Is it safe to assume you've considered all employment type options?
https://www.gov.uk/contract-types-and-employer-res...
Good luck!
https://www.gov.uk/contract-types-and-employer-res...
Good luck!
I'm in exactly the same situation as I'm potentially about to employ a friend as well. I also have a small eCommerce business, low barrier to entry, I just need help to push it forward and stop me working till midnight most nights.
As per others say, you need employers liability insurance, an employment contract and do a bit of reading on what employees can and can't do, and what you have to pay etc.
I'm usually against employing "friends" or people you know but sometimes it's a good option. In my case I'm taking on an office, stock will be there, but no one else will so I don't want some random person running the show with full freedom, not so much for theft, but I don't want someone listening to music and sat on Facebook all day. I hopefully know my friend well enough that she won't take the micky out of the freedom. She's a very good reliable friend, but I don't see her very often and as I won't be at the office much, I won't see her at work much either so HOPEFULLY there's less chance to fall out. It's a risk, but the pros outweigh the potential cons for now.
I have a full time job for the family business as well and am in charge of 12+ people. Let me just warn you that anything to do with employees is a pain in the arse! If you find someone you know or know of and can potentially trust, then it's definitely a bit of a weight off. My last randomly employed person looked great on paper, but he nearly lost me £500k worth of in progress work (this happened last month!) due to being a complete f**ktard. But two other recent employees from people we know are brilliant.
If you're not there much then the most important thing is to outline what you expect to be done on a daily basis, monitor and review often. I plan to work Saturdays instead of evenings (physically go to office rather than at home loafing) and I will probably review what has been done each week and outline my plans and requirements rather than just doing work. I think the key in our situation is to ensure that the employee knows what is expected of them and has a plan to work to rather than just winging it.
p.s I highly recommend Trello.com for project planning, to do's, sharing info etc and I will most definitely be using it with my employee, I already use it for 95% of my life! Vision Boards, Job Planning, features for websites, to dos, messages between staff at day job etc. etc.
As per others say, you need employers liability insurance, an employment contract and do a bit of reading on what employees can and can't do, and what you have to pay etc.
I'm usually against employing "friends" or people you know but sometimes it's a good option. In my case I'm taking on an office, stock will be there, but no one else will so I don't want some random person running the show with full freedom, not so much for theft, but I don't want someone listening to music and sat on Facebook all day. I hopefully know my friend well enough that she won't take the micky out of the freedom. She's a very good reliable friend, but I don't see her very often and as I won't be at the office much, I won't see her at work much either so HOPEFULLY there's less chance to fall out. It's a risk, but the pros outweigh the potential cons for now.
I have a full time job for the family business as well and am in charge of 12+ people. Let me just warn you that anything to do with employees is a pain in the arse! If you find someone you know or know of and can potentially trust, then it's definitely a bit of a weight off. My last randomly employed person looked great on paper, but he nearly lost me £500k worth of in progress work (this happened last month!) due to being a complete f**ktard. But two other recent employees from people we know are brilliant.
If you're not there much then the most important thing is to outline what you expect to be done on a daily basis, monitor and review often. I plan to work Saturdays instead of evenings (physically go to office rather than at home loafing) and I will probably review what has been done each week and outline my plans and requirements rather than just doing work. I think the key in our situation is to ensure that the employee knows what is expected of them and has a plan to work to rather than just winging it.
p.s I highly recommend Trello.com for project planning, to do's, sharing info etc and I will most definitely be using it with my employee, I already use it for 95% of my life! Vision Boards, Job Planning, features for websites, to dos, messages between staff at day job etc. etc.
most of the paperwork you need re employment law is usually available to download as part of your business insurance. Either from the insurer themselves, or via the broker.
All our clients have access to our web portal where they can download employment contracts, H&S gubbins, employee handbooks to personalise themselves. If your broker doesn't offer it some insurers such as Allianz offer it.
All our clients have access to our web portal where they can download employment contracts, H&S gubbins, employee handbooks to personalise themselves. If your broker doesn't offer it some insurers such as Allianz offer it.
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