You're the Boss

Most businesses need employees to help with day-to-day operations. While hiring employees can certainly make it easier to get all the work done, having even a single employee can make operating your business more complicated.

At iNova Credit Union, we want to help you understand these issues because, as an employer, you are strengthening our community by creating jobs for others.

Hiring for the Needs of Your Business

Before hiring, determine how many employees you need and what specific jobs must be filled. Hiring the right number of employees is critical, especially during the early years of your business. If you hire too many employees, you may not be able to pay them, too few and you may not be able to meet the demands of your customers.

Legal and Financial Issues

Before you can pay your employees you'll need to set up a payroll plan and create a payroll account. You'll need to make deductions from their paycheques for income tax, employment insurance and federal pension plans. You also have to pay Worker's Compensation costs to protect your employees in the event that they are injured while on the job. Because of the many new issues involved, you should seriously consider hiring a professional accountant or outsourcing your payroll to a payroll administration company.

Effective Management

In order to effectively manage your employees you'll need to establish work rules and policies. Maintain an open dialogue with all of your employees, and be prepared to discipline employees should they break with your policy. All of these rules, and any disagreements arising from them should be recorded in order to prevent your company being held liable for the actions of an employee.

The importance of managing your employees can't be overstated. Your employees aren't merely extra sets of hands; they are an investment in your company. If your employees are happy, and enjoy their work, they'll do their jobs more effectively. If they appreciate your business, its aims and policies, they're more likely to remain your employees for a long time.