Starting or growing your practice to the stage where you need to employ staff is an exciting milestone.
This can be somewhat daunting at the same time, unless you have the right team supporting you.
The key points to consider are the 3 c’s:
- Costs and Contribution
- Culture
- Compliance
When recruiting for a role in your practice, it is important that you take time to set your expectations before the process kicks off. This is true for all 3 c’s.
When planning for the cost and contribution of adding a staff member, it is important to consider all financial impacts. How much extra income will this role bring to your practice, and/or what capacity will it create for the practice?
Once we know the growth in your top line, we can then consider the costs that come with this revenue generation. Direct costs are the more obvious costs – remuneration (wages and super), leave, benefits to be offered, recruitment fees (recurring and non-recurring), and equipment needed. There is a second tier of costs that follow the direct costs, such as payroll tax, workers compensation, fringe benefits tax on benefits provided, training requirements or professional development.
To see the impact on the bottom line, both costs and contribution need to come together.
Considerations around cultural fit are the most important of the 3 c’s.
It is important that you are clear on your desired workplace culture and how the role will compliment your practice. Cultural fit is not only dependent on the successful applicant, but also for practices to consider their contribution.
- What are the conditions you will offer to ensure that the cultures mesh together in the way you envisage?
- How will you support your team to create and promote this culture?
- Is this something you would like to evolve with your team, or is it pre-existing due to client expectations or industry specifications?
- What are the qualities you would like potential applications to demonstrate to best match to your desired team values?
Compliance is the least interesting, but by no means the least important aspect to consider when employing people. It is important that you seek guidance from your advisor to ensure all bases are covered.
Adequate payroll software (your accounting package may incorporate payroll) will help navigate basic compliance requirements such as Single Touch Payroll (STP) reporting to the ATO, payslips, leave accruals, TFN declarations, and maintaining basic staff details.
Deducting tax from each pay in accordance with ATO tax withholding rates will also be incorporated in the right software. You need to ensure you have the adequate ATO registrations, have planned how to remit the tax withheld from staff, have a default superannuation fund, and have offered your employees choice of where their superannuation is remitted to. You must also ensure that you remit the super through a clearing house, register for payroll tax (if applicable) and have the appropriate employment agreements signed by both parties.
A combination of your accountant and HR advisor will ensure you tick all the right boxes for compliance.
Having the right people by your side to navigate the 3 c’s will ensure that employing staff is an exciting phase for your practice and its growth.
