The short answer
Thinking about hiring staff? Learn the key business, cash flow, and compliance checks to make before employing someone in your business.
Before hiring, ask yourself a few key questions. Do you actually need a hire, and what will the role take off your plate? Can the business comfortably afford wages and on-costs from consistent cash flow? And are the foundations ready, including a clear position description, workers’ compensation insurance and a sound employment contract? Done properly, a hire supports growth and delivers a strong return.
Do you actually need a hire?
List the tasks taking up your time and your team’s. Ask what the new person would take off your plate, and whether that frees you for higher-value work. Sometimes the answer is a better system, outsourcing or an offshore team member rather than a full-time local hire.
What should the position description include?
The purpose of the role and who it reports to
Key responsibilities and measurable outcomes
Skills and experience required
Hours, location and employment type
A clear description makes recruiting easier and helps the new person succeed.
Can the business afford it?
Look beyond the salary. Employment costs include super, workers’ compensation insurance, leave, equipment, software and training. Check that consistent cash flow, not one good month, can cover these. A forecast showing the hire’s cost against the extra revenue or capacity it creates is a good test.
Are the foundations in place?
Workers’ compensation insurance before the person starts
An employment contract that meets the relevant award and the Fair Work Act
Payroll set up for Single Touch Payroll and super
An onboarding plan for the first weeks
Key takeaways
Be clear on what the role will take off your plate.
Write a position description before recruiting.
Make sure consistent cash flow covers the full cost of employment.
Put insurance, contracts and payroll in place first.
General information only.
Read the hiring plan framework, or see our payroll services and offshore staffing.
Oz calls accounting "the great art", and his clients would agree. A CPA member and Xero specialist, he joined Elephant to provide a more holistic service that covers every base of building wealth. He believes long-term relationships are the only way to get clients real results. When he's not at his desk, he's at the gym, on his bike, or fishing - ideally all three.
