smallbusiness.co.uk: Helping your business think big

Each year, around half a million people decide to become entrepreneurs by starting their own business. They throw themselves headfirst into a world of long hours, tax returns and the torment of finding new business. Many of them never look back.

As a company expands, there comes the tricky issue of employing new staff. Not only does that raise the spectre of HR (NI contributions, annual leave and reams of employment legislation), but it presents the unique challenge of deciding whether a person is right for the job.

With unemployment heading inexorably toward the three million mark, choosing the right person will be increasingly hard as employers are swamped with applicants (apparently, even McDonald’s is receiving 2,200 job applications a day).

Hiring a person is never straightforward and it can be costly in terms of both money and reputation if the wrong decision is made. That means putting the right job spec together, studying CVs and making a decision after a two-stage interview process. Some managers like to create a test of some description to make sure the claims on a CV are based on fact as opposed to fiction. Finally, ask for references and make an effort to check them (you will catch people out, especially if they’ve worked in sales).

If you are one of the fortunate businesses out there which are contemplating growth, then now is the ideal time to recruit. There are hugely talented individuals on the market who can be hired at rates that would seem unthinkable 18 to 24 months ago.