Knowing how to hire the right employees is key to building your business and brand. Having the right team will help drive productivity, improve company culture and increase customer satisfaction — setting you up for success.
What should be completed before the hiring process begins?
Here’s what should be completed before the hiring process begins:
Ensure you meet all legal requirements
When you’re getting your paperwork together, ensure you meet all legal requirements from the Employment Relations Act, 2000. This act outlines the rights and responsibilities of employers, employees and employee organisations.
Formulate a clear and efficient onboarding process
Formulating a clear and efficient onboarding process will ensure you meet all employer obligations. It’ll also help give your new team member a smooth and productive start. Developing a new employee checklist can help prepare you for their arrival.
Identify the position you want to fill
To identify the position you want to be filled, start with what your business needs. Consider the tasks the person will do — what skills, qualifications and experience will they need? How long will they need to complete these tasks each week? How long will you need someone in this role?
Determine employee impact and costs
It’s your responsibility to manage the employee and their performance so they have the most impact in their role. Clearly, you need to offer a suitable and safe working environment and provide training, support and supervision to set them up for success.
You also need to determine employee cost, so you can manage your business expenses. Employee cost goes beyond salaries and wages. You’ll also need to factor in benefits, taxes, training, equipment and more, so make sure you run the numbers before taking someone on.
Identify non-financial benefits of the position
Identify the non-financial benefits that are suitable for the position. Non-financial benefits may include additional paid time off, volunteering leave, training and development, rewards and recognition programs, and more.
Even small businesses can offer non-financial benefits such as flexible work arrangements, birthday leave, internal mentorship programs and social activities. These will help attract and retain top-quality candidates and employees.
8-step checklist to hiring employees effectively
This eight-step checklist for hiring employees can make the process easier:
1. Create a clear job description
Creating a clear job description will help you reduce (or easily disregard) unqualified candidates.
2. Advertise the position in multiple places
Advertise the position in multiple places to get the role in front of more people. This means there’s a higher chance of finding a top-quality candidate.
3. Review resumes and applications
When reviewing resumes and applications, look for skills and experience that fit your role.
4. Prepare structured and thorough interviews
Preparing structured and thorough interviews ensures you get all the necessary information. This prep work also helps keep the interview on track and on time.
5. Interview top applicants
Interview top applications to understand how they might fit your company culture. Make sure you leave time at the end of the interview so they can ask any questions.
6. Ask for references
Ask for references of the candidate’s skills and experience. This will also help you get a deeper insight into their work ethic.
7. Perform thorough background checks
Perform thorough background checks to verify the candidate’s identity and right to work in New Zealand. You can send a conditional offer of employment subject to these reference checks.
8. Extend a job offer to the right applicant
Extend a job offer to the right application verbally and in writing. Then, send an employment contract for the employee to review and sign.
Tip: When it comes to getting your new team member up and running, it’s best to use excellent employee onboarding and payroll software.
With MYOB Business, your employees can self-onboard. They can add their personal information, banking, tax and KiwiSaver information directly into your MYOB software This reduces the new-starter admin for you and ensures you have everything you need to get off to a great start together.
Best practices when hiring employees
Follow these best practices when hiring employees:
Take company culture into account
Take company culture into account when interviewing candidates. They’ll stay longer and add more value if they fit your company's culture.
Take thorough notes after each interview
Take thorough notes after each interview so you can compare the skills and attributes of your applicants.
Notify rejected applicants promptly
Notify rejected applications promptly — as soon as you receive a signed employment contract from the successful candidate. You may also want to let other applicants know why they were unsuccessful.
Consider using a recruitment agency
Consider using a recruitment agency, especially if the role is highly specialised or you’re short on time. Recruitment agencies have a wider network of potential candidates and will pre-screen applicants to save you time.
How to hire employees FAQs
Is it worth using a recruitment agency?
It’s worth using a recruitment agency if you’re busy or if the role is complex or specialised.
What paperwork needs to be given to a new employee?
The paperwork you need to give a new employee includes the offer of employment and employee contract. They’ll also need to complete a tax code declaration and a form to opt out of KiwSaver, if they want. MYOB onboarding software makes this fast and efficient — your employees can add their personal and bank details into the software and upload forms themselves.
Do you need to register as an employer?
You must register as an employer before hiring anyone.
Grow your team, expand your business
Hiring the right employees is important for driving your business forward. To do that, you need to do a bit of prep work. You need to meet your legal obligations, find the right person and set them up for success. This starts with a great employee onboarding experience.
Once they’re up and running, MYOB’s cloud payroll software simplifies payday. It keeps you compliant by automatically calculating variables like KiwiSaver, tax and leave. It also files PAYE with IR. MYOB Business software is ideal for smaller businesses looking to simplify employee management — explore the plans.
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.