02 4578 1300
02 4578 1300

Blog

Becoming an employer for the first time

Becoming an employer for the first timeA smiling female business owner in a mustard-yellow shirt shakes hands with a young male new hire over a wooden desk in a bright, modern open-plan office. The desk in the foreground is neatly arranged with laptops, an open notebook, a ceramic mug, and a stack of folders. In the background, large windows look out onto an urban street with trees, and office walls feature pinned architectural sketches and design boards, capturing a positive and professional onboarding moment.
Image by Gemini

Hiring your first employee is a defining moment for any business, and whether you’re expanding from a single-person business or growing into new markets, it’s more than just finding the right person. It requires thoughtful preparation, strict adherence to Australian workplace laws, and the creation of a strong internal framework to support new hires.

Here’s what you should consider before and during the hiring process.

Before you hire, assess your operations

Before adding employees to your payroll, evaluate whether your current workflow and structure truly require permanent staff. Often, optimizing project management systems, automating routine tasks, or scaling up outsourced partnerships can relieve pressure without the long-term commitment of hiring staff. Check you have a clear business case for adding headcount, not just capacity issues.

Define the employment structure that fits your needs

Different positions will call for different types of employment, especially under Australia’s Fair Work system. Typical employment structures include:

  • Full-time: Generally 38 hours per week (plus reasonable additional hours), providing ongoing employment with full National Employment Standards (NES) benefits like paid annual and personal leave.
  • Part-time: Regularly working fewer than 38 hours per week on a predictable roster, receiving pro-rata leave entitlements based on their hours.
  • Casual: Where there is no firm advance commitment to a regular pattern of work. Casuals are paid a casual loading (usually 25%) in lieu of paid leave entitlements and have legal pathways to transition to permanent work over time.
  • Fixed term: Employed only for a specific period or project. Under Fair Work laws, these contracts are strictly capped at a maximum of two years or two consecutive contracts, after which the employee may be deemed permanent.
  • Seasonal: A specific form of fixed-term or casual work tied to peak calendar periods, such as harvest seasons or holiday retail.
  • Permanent: A broader classification encompassing both full-time and part-time contracts that offer ongoing security and statutory leave entitlements.

Clarify the legal and budgetary implications of each before advertising the role.

Understand and comply with employer responsibilities

Before starting the hiring process, it’s important to understand your obligations under Australian law. Several of the requirements necessitate the use of up-to-date payroll software to comply.

At a minimum, employers must comply with:

  • The Fair Work Act 2009, including the National Employment Standards (NES), which set minimum entitlements such as leave, maximum weekly hours, public holidays and notice of termination. [fairwork.gov.au]
  • Any applicable modern award, which determines minimum pay rates, classifications, penalties, allowances and working conditions. [business.gov.au]
  • Superannuation Guarantee obligations, requiring employers to contribute 12% percent of an employee’s qualifying earnings to a super fund each payday. [ato.gov.au]
  • PAYG withholding, including collecting tax file number declarations and withholding the correct amount of tax from employee wages. [ato.gov.au]
  • Single Touch Payroll (STP) reporting, which requires reporting salary, tax and super information to the ATO on or before each payday. [ato.gov.au]
  • Work health and safety (WHS) laws, including the duty to provide a safe working environment. [safeworkaustralia.gov.au]
  • Workers compensation insurance, which is generally required for employers in NSW when hiring staff. [icare.nsw.gov.au]
  • Anti-discrimination and workplace protections, ensuring fair and respectful treatment of all employees.

You should also ensure the employee has the legal right to work in Australia before employment begins.

Lay the groundwork for a successful hire

Once you’re ready to hire, take a structured approach to onboarding, including:

  • Written employment agreements that align with the relevant Modern Award, outlining clauses, protecting confidentiality, and defining performance expectations.
  • Mandatory documentation delivery, ensuring every new hire receives the Fair Work Information Statement (FWIS) on day one, alongside a Casual or Fixed Term Contract Information Statement if applicable.
  • Building an onboarding process that introduces employees to your company culture, tech systems, reporting lines, workplace health and safety (WHS) protocols, and HR procedures.
  • Decide whether your in-house team will manage recruitment or if you’ll use a recruiting firm. Consider working with agencies that specialize in your industry for hard-to-fill roles.

Follow these steps, and you’ll set the foundation for a legally compliant, positive hiring experience that encourages a productive work environment for your new staff.

Choosing the right person for the job

This can make all the difference to the success of your business. When evaluating candidates, consider the following:

  • A candidate must have the necessary skills and experience to perform the job. Many positions require familiarity with the tasks, regardless of formal qualifications.
  • The potential to grow and develop in the role. Look for signs of ambition and a desire to succeed, such as having a plan that includes career progression. This can indicate they’ll be proactive and creative in solving problems.
  • Check to see if they are committed to the role. Frequent job changes might signal a lack of commitment or direction.
  • A candidate with strong personal values can positively contribute to your business image. During the interview, engage in conversations that go beyond the job itself to assess if their values align with yours.
  • Look for experience that matches both the scope and pace of your operation. Someone with relevant industry exposure can ramp up faster.
  • Assess future potential, such as leadership qualities, drive, and growth mindset, to adapt as your business evolves.

When you carefully consider these factors, you’ll increase your chances of hiring a candidate who not only meets the technical requirements but also fits well with your company’s culture and long-term goals.

Contact us if we can help your business take the next step.

Categories