Are you sure you need to hire now?

Welcome to the third edition of a multi-part series on the topic of tasks you should be adding to your “start up to do list”. In past weeks we have discussed starting your small business checklist and organizing your startup. Let’s continue with the next part “Are you sure you need to hire now?”.

You may be at that stage you need to hire employee, are you ready?

I came across a business owner within my network that wanted to hire an employee as an assistant, because they felt that was the right and reasonable step. Unfortunately, hiring your first employee may not be the walk in the park that you’re hoping for.

Word to the wise: You must truly understand your business situation if you are at a stage that you need and can afford to hire an employee. Employees are not hired when you are more than capable of handling the work load on your own. Employees are hired when you need support the handling of multiple tasks and can benefit the business in providing someone experience, upgrade skills and empower the employee’s career.

Often times, we may believe that hiring employee is a sign of growth, however there are major responsibilities that come along with this stage in business. Especially understanding that you, the employer, are providing wages that in turn will be used for mortgage/rent, family care, and/or savings for employee’s future. Be conscious that it is your time to hire.

Here are few heads up:

  • When your employee earns wages, you must pay your employee consistently on a pay period you have selected. Failure to pay or in consistent manner can result in claims under your provincial Ministry of Labour.
  • More than just wages, you the employer must be prepared to compensate employees for vacation pay, public holiday pay and/or termination according to your provincial obligations.
  • You must submit sources deductions (Employment Insurance, Income Tax and Canadian Pension Plan) to the Canada Revenue Agency, regardless if your business has made a profit – no delays or excuses.

Having documentation is must:

Having proper documentation is crucial when dealing with employees. Job Descriptions are particularly important as they set the expected performance, the standard or level of satisfaction of a job, and contain clear instructions.

Often time, I hear from small business owners that they do not think they need a job description for two reasons;

  1. They are too small.
  2. All employees do the same job.

That may be the case, however you can’t expect a specific outcome or behavior if it has not been properly documented and explained to employee.

A moment to reflect:

Make a proper assessment of your situation, ask yourself:

  • Am I in a position to handle my work load on my own?
  • Do I have sufficient knowledge of the ministries that protect employees?
  • Do I have sufficient resources to provide necessary training?
  • Can I trust that someone else will have access to my place of business?
  • Do I have enough cash flow to justify hiring employee?

We have created the following checklist to ensure you are on the right track.

This week’s topic is: hiring employees

☐ Have you registered your payroll account through the Canada Revenue Agency?
☐ Have you learned rules, regulations and considerations when hiring employee?
☐ Do you need a job description? Click here.
☐ Do you need to create an internal employment manual?
☐ Do you have a business counsellor?

Remember, my entrepreneur friend, you are not alone. Become a member today by signing up at MyStartUp.ca and speak to your regional business counsellor for further information, insight and direction.

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CesarCesar Gomez-Garcia has been with the Canadian Federation of Independent Business for six years. His current role at the CFIB is helping members with their questions on compliance. These questions can range from employment standards to health and safety, as well as complicated red tape situations that small businesses face. His passion is reading and writing about entrepreneurship. Learn more about Cesar via LinkedIn and follow him on Twitter @josuegomezg.

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