Guide

Hiring staff for the first time

Hiring staff is hugely satisfying. It allows you to focus on running the business better. Here’s what’s involved.

A restaurant owner hiring a chef

1. Write a job description (JD)

A bakery owner writing a job description

List the daily tasks you need help with, and the skills required to do them. Decide if you need a full or part timer.

2. See if you can afford to hire

A bar chart showing a comparison of income and expenses

Find out what your employee would cost. Start by asking businesses who’ve hired staff in similar roles.

3. Register as an employer

A small business owner registering as an employer on a tablet

You need to register with the ATO before hiring staff and withholding tax from their pay.

Start the registration process well before your new hire’s first day.

4. Recruit the right person

A small business owner interviewing potential employees over the phone

Advertise the job. Check candidates against the job description to select the top two to four for an interview. Make an offer to the best fit.

TIP: Call references to make sure candidates are as good as they say they are.

5. Paperwork

A folder containing paperwork for an employee

Once hired, create a file including the employee’s:

Name, pay, bank account details, contact details, next of kin, tax forms, Super details

6. Pay them

A small business owner paying their employee

Hiring staff means paying staff (and taking out taxes). Try to avoid mistakes and delays. They stress everyone out. Check Xero’s guide on running payroll.

Automate all the staff stuff

Payroll software can calculate pay and deductions, while handling leave requests, recording time and more.

After hiring staff

Create a good onboarding process that introduces new people to your ways of working. Make sure they feel comfortable and confident, so they can do their best work for you. Give them opportunities to tell you how things are going and what could be better. Do all this, and hiring staff will make your business stronger.

Read more in our guide to hiring employees.

A folder containing Xero's guide to hiring

Get this infographic and bonus ebook

Download our 'Hiring staff' infographic, and get the bonus ‘Guide to hiring’ ebook.

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