The final planning step before you start the recruitment process. You need to map out the first stage "Deciding to Hire"; costs, training, job definition.
How much do I Pay?
Your budgeting will determine part of this, as does the market rate (demand for employees in the field your hiring, the going rate is what the market is currently paying for their skills).
How to determine the market rate:
- Talk to other Employers.
If you know other business owners or managers in your field you can talk to, talk to them. They can help you determine what the market rate is along with the demand they see in the labour market along with practical advice.
- Use online tools.
There are numerous online tools available that can help you determine what the average market rate is. Check out: TradeMe Salary Guide, Hays Salary Guide, NZ Careers Salary Guide.
- Talk to a Recruiter.
If you take the third-party recruiter path, they can also help you determine a salary/wage range for the role, more on recruiters in the next article.
Additional factors to the market rate can be location, significant projects in the area which can place more demand on the labour market, a sudden increase in related work demand in your area of expertise or shortage of workers.
Once you’ve researched the going rate, put it into a range and determine what skills you might offer to pay more for. Knowing before the recruiting process, what skills or attributes you're willing to pay more for will assist you when it comes to discussing pay during an interview.
Plan for extra Employee costs
Regardless of how skilled your candidate is, there are still extra costs that you will need to budget for. These costs could be uniform, PPE, equipment, tools, vehicle, training, insurance, taxes and levies, to name a few.
Keep in mind the real cost to the business of an employee can be 25- 40% higher than just their wage or salary due to taxes, benefits, costs, bonuses or other discretionary extras.
Induction and Training Plan
It might feel like jumping the gun, but having the necessary paperwork in place will help your new staff member get up to speed quickly and provide the right start and expectations for them to fit in to.
As a business in the earthworks or construction industry, having an active health and safety plan is essential and not just doing the paperwork but inducting new staff on your H & S expectations will set them and your business up for success.
These resources can help you understand a bit more on H&S:
Providing additional or ongoing training can also be part of your mid to long term plans with your business and staff, perhaps adding specialised equipment, pursuing projects that require specific qualifications or skills. Or maybe you have a particular way of doing things unique to your business, training staff when they start or gradually as you give them more responsibility will make sure that work is completed to the standard you strive for.
Your Responsibilities as an Employer
As a great employer, you no doubt, strive to look after your employees just like you look after your valued clients and customers.
However, there are some mandatory laws you must comply with. We recommend checking out these up to date resources on compliance.
This is one of the most in-depth total business tools around. Laws and compliance requirements can change, so we recommend you check back periodically to keep up to date.
Job Description and Contracts
Last but certainly not least, you need to formalise the Job Description and Contract. These are legally binding documents and shows an employee what they’re expected to do in their role.
If you have doubts, need inclusions about something specific or anything else it may be wise to talk to an employment specialist or lawyer.
Be prepared to change these or be flexible as the job description and contract can be part of your discussion and negotiation with a candidate. These will also differ based on the type of employee you hire.
This article is part of a series on Deciding to Hire.
Next up: Advertising the Role ►
*Please note this was written as a guide only and is not advice or a replacement for qualified advice/expertise in hiring and it's legal requirements.