Even if you begin your business without any employees, you may eventually get to the point where you will need extra help. If you want to employ staff there will be many considerations. You need to decide if you will require that person or those people full-time, part-time, on a casual basis, or if it would be better to contract the work out to other businesses rather than to actually employ someone.
In very general terms, a contractor is someone who is not employed by you, but rather you are one of a number of his or her clients. They have their own business, supply their own tools and equipment and will take care of their own tax and superannuation. They will most likely invoice you regularly and you will pay that invoice, rather than wages.
Employees work under the relevant awards, are paid a wage or salary and are under the guidance of either you or a supervisor employed by you.
A casual employee is one whose hours may vary from day to day and week to week. They are paid an hourly rate, usually a little higher than permanent part or full-time employees to account for the fact that they do not accrue holiday leave or sick leave.
If they do not work due to holidays or illness, they are generally not paid for these days (although this may be stipulated within their agreement). Whereas a permanent part or full-time employee accrues sick leave, special leave and holiday leave. These employees are usually paid an hourly rate, a little lower than that of a casual employee. Salaried staff members are paid an agreed amount of money per week or per year.
There are pros and cons of each type of employment and what’s best for your business depends on many factors, including your location, the nature of the work involved, the amount of work to be done and your ability to provide necessary training and support.
If your business is based in Australia and you are considering employee team members – or already employ staff – I highly recommend you make sure you get a copy of the Instant Policies And Procedures Employee Manual.
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It explains, in clear, simple language, everything you need to know about employing staff including:
And it comes complete with a vast range of templates that can be easily integrated into your business.
Remember … no matter how great you are at what you do, it’s never ideal for any one person to try to do everything required within a business. Building a solid, reliable team around you will be one of the best things you can do to grow your business, as well as for your own sanity.