So your business is looking good and you need some help. You need to think about the type of employee who will best suit your needs.
Here are a few questions to consider.
- Do you need someone for a one-off short-term project, or in an ongoing capacity?
- Would it be viable to get the job done using an outside contractor?
- What specific tasks do you require the person to perform?
- Does the person need to have specific formal qualifications to undertake the task (eg motor mechanic, accountant, etc)
- How many hours per week do you anticipate you will need someone?
- Should you take on an apprentice or trainee?
- How much can your business afford to pay?
Once you know the answers to these questions, a range of employment options are open, each with advantages and disadvantages.
Employment option | Advantages | Disadvantages |
Full time employee | - Commit to certain number of hours per week
- Become highly skilled and familiar with your business
- Provide reliable back-up for you
- Develop loyalty to your business
| - Costs
- It can be difficult to terminate employment if your needs change or the employee is not working out as you expected
|
Part-time employees | - Commit to set number of hours per week
- Cost less than full-time employees
| - Commitment to your business could be open to question
- You may need to work hard at developing their sense of belonging
|
Casual employees | - Can cover short-term peaks in workload
- Offer you maximum flexibility
- Paid on basis of hourly or daily rate
- Generally not eligible for entitlements that are applicable to permanent employees
| - Wage loadings usually apply to compensate for lack of permanent entitlements
- Are likely to be the least committed of all employees
|
Fixed-term employees | - Can be engaged for special project work
- Useful to cover employees who are on long-service leave or maternity leave
| - Usually accrue entitlements on a pro-rata basis
- If employment is terminated before contract expires, employee may have the right to sue you to recover wages for the balance of the term
|
Apprentices and trainees | - Apprentices train to do the work of a tradesperson; trainees train to do the early stages of traditional trade occupations
- Grants and incentives are available to encourage you to take up these options
| - Long-term commitment usually required on your part to take on an apprentice
- Traineeships may only be for 12 months
|
Sub-contractors | - Can meet a specific need in your business
- Useful option where special expertise is required
- Eliminates overheads associated with direct employment
| - Strictly defined by law to prevent employers avoiding legal responsibilities to their employees
- Consequences of getting the contractual arrangements wrong can be serious
|
Corporate Internship Program | - Completion of a valuable work project
- The opportunity to trial interns as potential future employees
- Students will not be paid a wage during the internship
| - Businesses must provide a suitable staff member to: mentor the student(s); provide guidance in the workplace during the internship; and contribute to the workplace assessment of the intern(s)
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