Hiring Temporary Employees As A Small Business

Taking on staff is a big responsibility but when you get to the point that you need an extra pair of hands, it’s necessary for the sustainability of your business and for your sanity! The thought of hiring staff can be daunting, but it is a positive step in growing your business and bringing in new expertise, help and knowledge.

Taking on a new employee can increase your productivity and allow you to offer more to your clients with the added capacity.

But if you are unsure whether hiring is still a good idea, you can opt for hiring a temporary worker to fill in the gaps when you need them the most.

You may be looking for cover over an extended holiday period, maternity cover or a sickness period but having the option of having an extra pair of hands is a great way to bridge the gap for a short-term solution.

Also, demands come and go and seasons often have a say in how busy a business is or can be and you may not need a permanent member of staff, just a temporary solution for when you require their services and when you have the budget to do so.

The benefits of hiring temporary employees

You could require a temporary member of staff for a number of reasons and these all come with benefits:

• You will value the flexibility of a temporary worker when you need them
• Temporary employees can often be hired quickly and fill immediate gaps in times of need.
• It doesn’t have to be temporary, if you find the right person, there is the option to take them on as a permanent employee.
• Hiring temporary staff allows you to hire for specific tasks or projects, meaning you can have specialist workers to complete certain jobs.

The different types of temporary workers

There are different ways that you can hire temporary workers depending on your circumstances:

Fixed-term contract
This is the most common way of hiring a temporary worker where a contract of employment is given between you and the worker which starts and ends on a specific date and does not usually finish early. This typically is used for seasonal work, maternity cover or specific tasks or projects.

Zero-hours contract
A type of contract between an employer and a worker, where the employer is not obliged to provide any minimum working hours, while the worker is not obliged to accept any work offered.

Agency workers
There is the option to hire through a recruitment or temp agency. If you decide to look at this option, you will need to consider the The Agency Workers Regulations 2010 (AWR). Using a recruitment agency can be beneficial if you do not have the time to source an employee, they do all the work for you, but you will pay a commission fee for the privilege.

Freelancers
If hiring a freelancer, you’ll probably hire them for a specific task depending on their skillset. These people can be hired as and when you need them and to be called on when you have a busier workload or season. They are not ‘employees’, classed as independent workers, and are responsible for their own tax and national insurance.

Employee insurance

If you do decide to employ staff whether that be temporary or casual, you are legally obliged to take out employers’ liability insurance which protects you against compensation claims arising from illness or injury suffered by an employee during the course of their work. Bear in mind that you could be fined per day for any uninsured days.

As a small business it’s important to weigh up what needs you have, whether they are urgent needs or not and to establish what’s important for your business. Here at Kara Accountants we offer advice and guidance to small business and offer payroll services, so if you’re still unsure on what your next step should be, we’re happy to help. Get in touch to start the conversation.