The Business Growth Formula Seminar - Gold HR & SwitchFoot Accounting Limited
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The Business Growth Formula - When should I recruit and how do I go about it?
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The Business Growth Formula Seminar - Gold HR & SwitchFoot Accounting Limited
- 1. The Business Growth Formula When should I recruit and how do I go about it? 18 October 2018 Sam Gold & Rebecca Trudgett
- 2. Today • Introductions • Background • When should I recruit and how do I go about it? • Planning? • Who? • Obligations? • Employment contracts? • Induction? • Cost of recruitment? • Cashflow considerations? • Breathe HR - demo • Q&A • Networking
- 3. Rebecca Trudgett FCA • Qualified Chartered Accountant; • Making Tax Digital and Xero specialist; • Training & support clients to digitalise; • Cashflow and budget setting; • Quarterly reviews and goal setting; • Traditional Year end and tax compliance; • Consult for a number of other practices; • Charities and complex accounting;
- 4. The Business Growth Formula = People + Cashflow + Technology
- 5. Sam Gold • Experienced HR professional • Small business HR expert • Helping business owners get the best out of the people • Employment law advice • Resolving tricky people problems • HR outsourcing • Workplace mediation
- 6. Why people make bad hires? • The wrong person • Underestimating the cost • Lack of robust employment contracts
- 7. Hiring smart from the start • To free up or better utilise YOUR time • To be able to serve more customers by hiring someone with the SAME skills as you • To bring in COMPLEMENTARY skills to expand your service or product range • To bring in a subject matter expert to achieve a specific outcome
- 8. Your absolute YES list and deal breakers • You need to understand YOU first - it’s all about knowing yourself • You + them = SUCCESS • Draft an outline job description • Job title • Role purpose • Key responsibilities • Hours/working pattern • Skills you’re looking for • What does success look like
- 9. Difference between good and great? • Create your absolute YES list • Prioritise the most important things you need to succeed: • Skills • Behaviour • Experience • Start by writing list of everything you want – your wish list, then highlight 5 things that are a MUST
- 10. Identify your deal breakers • These are the things that would automatically lead to you reject someone • It’s about ensure you don’t hire someone who you CLASH with or someone who won’t perform well within your business culture
- 11. How to figure out what to pay • Look at online job boards • Call local recruitment agencies • Search for online salary benchmarking services or reports • Ask people in your network
- 12. Are you ready? • The quality of work is consistency suffering • Your working yourself to the bone • You’re surviving, not thriving and want more success faster • You’re mentally ready to delegate • You’re starting to hate your business Any of these resonate?
- 13. Other alternatives Employment status • Employee • Self employed contractor/freelance • Worker Employees • Carries out work personally • Has employment rights (minimum wage, sick pay etc.)
- 14. Other alternatives • Self employed contractor • May be employed by another company or self employed • They decide where and when they work, who does the work • Pay their own tax and National insurance • Don’t have the same rights as employees • Typically work for lots of companies • Worker • In between employee and contractor • No set hours and are paid for hours worked • Accrue holiday and are entitled to minimum wage • Don’t have to give them work and they have the right to refuse the work
- 15. So what’s the difference?
- 16. It’s all in the detail • Once they’ve accepted the job offer you need to send out the paperwork, but what do you need? • Offer letter • Contract of employment • Personal details forms • Reference nominee form • Employee privacy notice • DBS check info (if relevant)
- 18. Most important HR policies to have • Absence • Capability • Disciplinary • Grievance • IT Security • Equality • Flexible working • Performance management • Health and safety • Data Protection
- 19. The boring (but important) bit 5 things you need to do • Get insurance – employers liability insurance • Get references from previous employers • Check they have the right to work in the UK • Set up payroll • Create a safe place to store the employees data Other important things to be aware of: • National minimum wage • Pension • Holiday entitlement • Protection under health and safety • Statutory redundancy pay • Maternity/paternity, adoption and parental leave
- 20. Getting set up for success Three big risks in not planning for your new employee starting: 1. The become disengaged, quickly 2. They won’t know what they’re supposed to be doing 3. They decide to leave
- 21. Getting the best out of your new employee Five steps for success: 1. Provide direction and clarity 2. Give them the information they need to do their job 3. Offer the right tools and equipment 4. Give them permission to be proactive 5. Get to know each of them
- 22. The Costs Start To Add up……………… Direct costs Gross Salary Holiday & Sick pay Pension (AE) Employers NI Training and development Office/desk costs/IT hardware & software Employee Benefits Social events Recruitment costs
- 23. The Costs Start To Add up……………… Indirect costs Supervision time Systems and processes Loss of freedom Insurance Marketing to attract the right staff Health & safety HR & legal cost Payroll costs
- 24. Budgeting
- 28. Here’s the tech bit…. So you’ve made the decision to take on your first employee or grow your existing team, but people take time right? We have a way to reduce the amount of time you spend on all things people…. Welcome Bethan from breatheHR - our HR software partner
- 29. In partnership with Growth, Technology and People
- 30. Who are we?
- 31. Roughly 5.7 million SME’s in the UK Responsible for a turnover of £1.9 trillion 85% bad hires made 4.1 hours ‘CV skimming’ £530 per hire Are We Time Wasters?
- 32. Can Technology Help (YES!) Simplicity Access on the go Safe and Secure All in one place
- 33. Be a time saver Before: 364 hours Before: £ 4,534 After: £ 1,943 After: 156 hours
- 34. Ok, Ok, so how does it ‘actually’ work?
- 35. Ok, Ok, so how does it ‘actually’ work?
- 36. Ok, Ok, so how does it ‘actually’ work?
- 37. Ok, Ok, so how does it ‘actually’ work?
- 38. Ok, Ok, so how does it ‘actually’ work?
- 39. Retain!
- 41. Thank you for attending Contact details Sam Gold Sam@goldhr.co.uk 07955 588922 www.goldhr.co.uk Rebecca Trudgett Rebecca@switchfootaccounting.co.uk 07799 547046 www.switchfootaccounting.co.uk
Editor's Notes
- Welcome to the Business Growth Formula RT
- RT Welcome Health and safety Plan for today Timings 10:30 – 11:30 Interactivity seminar – please ask questions as we go and please share experiences
- Me I started SFA about a year ago after leaving my nice comfortable life at a mid tier practice. I had no clients and I started my adventure growing and developing my own practice. I made the leap for a number of reasons but the many one was a desire to spend more time face to face with my clients through out the year not just around year end. I am a qualified chartered accountant and my background in auditing and accounting of both small consultancy businesses all the way through to 100m groups. I have a lot of experience in most sectors include charities and education. The London Marathon was a audit client for a number of years. And I can’t watch the race without a bit of sadness. I am Xero expert which happened a little by chance and I enjoyed training and support both clients and staff on the software. Therefore I converted the practice to Xero platinum partners and developed a specialist outsourcing team in Guildford from scratch. The reason I am drawn to Sam and HR – is it’s the people side of accountancy and business that interests my. I have a very technical background but without the people I would get bored. In a training practices I spent a lot of time working with out in house HR team and I learnt a lot about recruiting, motivating managing and developing staff. I know how hard recruiting can be and I know the pain when you get it wrong! Will leave it To BreatheHr to explain how amazing they are later on
- This seminar came from a conversation between Sam and I about the drives of growth in a business. You need great people to grow your business as you will get to a point where you cant grow your business any further on your own. You will need great technology to reduce the business admin, to market your business and auto the simple tasks. You will need to be able to manage the increasing pressure on your cashflow. Without all three of these elements you are unlikely to continue to grow a successful business. Growth means different things to different people and it doesn’t have to mean you aspire to be the next facebook. It could be you want to grow your business so you can afford an office in a lovely building like this one. Our plan to hold a number of seminars which cover the 3 elements over the next year and we are very open to topic ideas.
- Sam to amend wording above and add some interesting about her
- Hiring the wrong person Underestimating how much it will cost Not putting a robust employment contract in place
- To free up or better utilize YOUR time; To be able to serve more customers by hiring someone with the SAME skills as you; To bring in COMPLEMENTARY skills to expand your service or product range; To bring in a subject matter expert to achieve a specific outcome What do you hope to achieve by employing someone and how will the appointment help you achieve your goals faster? Knowing your why helps you identify what needs to be done and the skills required Ultimately for any business wanting to grow, its because you want to make more money. There are 4 main way you can achieve this when it comes to hiring someone:
- You need to understand YOU first - it’s all about knowing yourself You + them = success Draft an outline job description Job title Role purpose Hours/working pattern Skills you’re looking for What does success look like
- Create your absolute YES list Prioritise the most important things you need to succeed: Skills Behaviour Experience Start by writing list of everything you want – your wish list, then highlight 5 things that are a MUST
- These are the things that would automatically lead to you reject someone It’s about ensure you don’t hire someone who you CLASH with or someone who won’t perform well within your business culture Use your list throughout the selection process
- Look at online job boards Call local recruitment agencies Search for online salary benchmarking services or report Ask people in your network
- The quality of work is consistency suffering Your working yourself to the bone You’re surviving, not thriving and want more success faster You’re mentally ready to delegate You’re starting to hate your business Any of these resonate?
- Employment status Employee Self employed contractor/freelance Worker Employees Carries out work personally Has employment rights (minimum wage, sick pay etc.) Employee – can be full or part time and for a fixed term period, such as to cover maternity leave or for a specific project. There is stability and more control with this option. You can also have a trial period before fully committing
- Self employed contractor May be employed by another company or self employed They decide where and when they work, who does the work Pay their own tax and National insurance Don’t have the same rights as employees Typically work for lots of companies Worker In between employee and contractor No set hours and are paid for hours worked Accrue holiday and are entitled to minimum wage Don’t have to give them work and they have the right to refuse the work Self employed contractors – Great if you want an injection of experience in a flexible way, without commitment Workers – Great for seasonal businesses, where demand fluctuates and you need a flexible workforce. Zero hours contracts fall under the worker category.
- These are the things that would automatically lead to you reject someone It’s about ensure you don’t hire someone who you CLASH with or someone who won’t perform well within your business culture There is a typo in the bottom line of the box
- Once they’ve accepted the job offer you need to send out the paperwork, but what do you need? Offer letter Contract of employment Personal details forms Reference nominee form Employee privacy notice DBS check info (if relevant)
- Absence Capability Disciplinary Grievance It Security Equality Flexible working Performance management Health and safety Data Protection
- 5 things you need to do Get insurance – employers liability insurance Get references from previous employers Check they have the right to work in the UK Set up payroll Create a safe place to store the employees data Other important things to be aware of: National minimum wage Pension Holiday entitlement Protection under health and safety Statutory redundancy pay Maternity/paternity, adoption and parental leave
- Everything’s in place for you’re just waiting for your new employee to join your business. The final challenge is to get your new employee to be productive as quickly as possible and build loyalty, so you don’t lose them. This isn’t always easy and something so often over looked. 1 – Image how you’d feel if you were excited to start your new job and your boss wasn’t expecting you. If you don’t create a warm and welcoming environment, all that initial enthusiasm the employee feels gets lost and it’s hard to turn this around. 2 – If you don’t get clear from the outset with your new employee on the purpose of their role, where they ft into your business and what your expectations are for success, you risk assumptions being made around work priorities and areas of focus 3 – Worst case is your new starter resigns within a few months because they are unhappy, they’re not clear on what their focus is, and they don’t feel like they fit in. This is a bad outcome for all involved and means you have to start the recruitment process all over again. - Take time to help your new starter settle in Have weekly and monthly reviews Get feedback and listen!!
- Everything’s in place for you’re just waiting for your new employee to join your business. The final challenge is to get your new employee to be productive as quickly as possible and build loyalty, so you don’t lose them. This isn’t always easy and something so often over looked. 1 – Image how you’d feel if you were excited to start your new job and your boss wasn’t expecting you. If you don’t create a warm and welcoming environment, all that initial enthusiasm the employee feels gets lost and it’s hard to turn this around. 2 – If you don’t get clear from the outset with your new employee on the purpose of their role, where they ft into your business and what your expectations are for success, you risk assumptions being made around work priorities and areas of focus 3 – Worst case is your new starter resigns within a few months because they are unhappy, they’re not clear on what their focus is, and they don’t feel like they fit in. This is a bad outcome for all involved and means you have to start the recruitment process all over again. - Take time to help your new starter settle in Have weekly and monthly reviews Get feedback and listen!!
- RT Hopefully this demonstrates that you need to build a budget
- RT Hopefully this demonstrates that you need to build a budget
- RT No surprises here – I would do your initial budgeting in Xero; The advantage being it should add up! And you can then monitor budget against Actuals! Disadvantage is Xero budgeting is a blunt tool and something like Futrli would be better!
- RT When building a budget is really useful to look at what has happened in the past. Get quotes and fixed fees where you can before you start recruiting
- The one big area that scares business owners about taking on new staff is Can I make payroll at the month end! I suggest working with your accountant and building a series of scenarios These scenarios can be built from your Xero data and using tools like Futrli you can build simple scenarios: this next slide will show you a simple comparison and scenario planned I have built based on demo data; You will see a profit and loss cash flow forecast a simple analysis and the different lines represent now with a subcontractor and with an employee you will see the Cashflow differences between having a subcontractor and an employee 1 Oct you take on a new employee -
- The one big area that scares business owners about taking on new staff is Can I make payroll at the month end! I suggest working with your accountant and building a series of scenarios These scenarios can be built from your Xero data and using tools like Futrli you can build simple scenarios: this next slide will show you a simple comparison and scenario planned I have built based on demo data; You will see a profit and loss cash flow forecast a simple analysis and the different lines represent now with a subcontractor and with an employee you will see the Cashflow differences between having a subcontractor and an employee 1 Oct you take on a new employee -
- Short video to show who breathe are
- First two stats are from our culture economy report On average we spend roughly £ 530 per person and waste over 27 hours ( a total of 3 candidates per hire) On top of that 85% people ( admittedly) had hired
- It isn’t as scary as it seems..
- The biggest factor is time Managers do not have the time or resources, but having a system to enable them to effectively manage the recruitment process.
- Step 1) Someone has left and you need to fill their role- how long is it going to take? Step 2) Create your vacancy. You can include all the information you need eg/ salary, perks and benefits What happens next?
- By having a generated link, this gives you the flexibility to post the job advert wherever you want! This could be embedded on your website, promoted internally in the business, posted on job boards or given to your HR consultant. We let you know when someone has applied for the position! If you have 30- 40 people apply, you haven’t go to create different folders on your computer or store it in the filing cabinet – it’s all in one place.
- Invite to an interview after reviewing their application. Need a reminder – rather than reviewing your trusty filing cabinet. Log in and you’ve got everything you need regarding that individual Judgement day!
- Accepting and creating a profile Onboarding process begins. 3) Send their welcome email and welcome to the business
- Demonstrate compliancy with a system Look for ISO accreditation – business and servers! Centralised place for your new recruit to access all their important documents. Eg/ employee handbook. In the light of GDPR we need to demonstrate compliance- you can check to see if the new starter has read all those important documents
- Once you have hired, you want to retain and track their progress. Performance reviews Probation reminders Kudos! New Starter training
- Any questions?
- Thank you for attending, Please feel free to ask us any questions after; Please connect with us both on Linkedin; Feedback of suggestions for further topics please email us. Please feel free to co work with us in the business lounge for the rest of the day;