Managing people 

If you want to expand your business you need to consider whether you have the necessary resources to successfully do so. The resources you might need are things such as new machinery and finance to afford extra staff. 

Staff are a key resource for any expanding business and often many businesses grow their staffing when their product or service is in demand without carefully considering the local regulations or good employment practices. Before you take on extra staff, we recommend that you establish which staffing solution will best enable you to meet your new needs. For example, you may wish to employ staff directly or buy in services as and when required; either option will require a long-term investment for your business.

Employing staff – important regulations
If you are directly employing staff then there are certain regulations that you must comply with. The information below will highlight what you must do - more information can also be found in our ‘Guide to Employing Staff’.

Download Guide to Employing Staff (39kb)

Regulation of Undertakings - If you are intending to employ additional staff you must ensure that you make an application to the Regulation of Undertakings department. Applications take approximately 3 weeks to process and currently there are no fees to pay for the licence.

Social Security – When you start employing staff you must register as an employer with the Social Security Department. As an employer you are required to deduct 6% from the employee’s gross salary before you pay them (as their own contribution) and pay 6.5% of your employee’s gross salary as the employer’s contribution. You must be in possession of a social security registration card for each employee and keep wage records for a period of ten years.

Anyone who employs staff on a salary above the Standard Earnings Limit – more than £45,336 per year (that’s £3778 per month) – are required to pay an extra 2% on the earnings. The 2% will be payable on employees’ earnings between the Standard Earnings Limit and the Upper Earnings Limit (which is £150,000 per year, or £12,500 per month).

Income Tax – As an employer you must register with the Income Tax Department and deduct the effective ITIS rate from your employee’s gross salary before you pay them.

Employer’s Liability Insurance – As an employer you are required to have and display an employer’s liability insurance policy.

Health and Safety – Businesses employing 5 or more staff are legally required to have a written health and safety policy.

Employment Law and Contracts of Employment
Within 4 weeks of an employee starting work for your business you are legally required to issue them with a contract of employment outlining their terms and conditions of employment. If you do not require your employee to work for a fixed period of time, you may wish to consider using a zero hours contract. This type of contract allows you to specify an hourly rate of pay with the employee only being paid for the amount of hours that they work.

There are certain legal obligations that you will have as an employer under the employment laws. For more detailed information and for advice concerning any aspect of employment law we recommend that you contact the Jersey Advisory Conciliation Service (JACS).

Jersey Advisory and Conciliation Service website 

Performance Review and Appraisal
To get the best out of your staff and to aid with staff morale and their commitment to your organisation, it is essential that you work with them to help them to develop. A structured appraisal system is beneficial in that it allows you to assess your member of staff’s performance and allows that member of staff to feel valued and that their good work is being recognised. An appraisal or performance review should be treated as an opportunity for you to have an honest, and most importantly two-way, chat with your member of staff about their performance and what solutions can be found to develop any weak areas that they may have.

To monitor and assess your employee’s performance it is essential that you set out clear objectives and measurable targets for them to achieve from the outset. You might want to consider involving your employee with setting their targets as you’re more likely to get their commitment if they feel that the targets are achievable. When writing your appraisal practices you should give serious consideration to how good performance will be recognised, for example through bonuses or promotion, and how poor performance will be tackled. For help on how to implement a performance review procedure that is applicable for your business please contact one of the Jersey Enterprise advisors.

Restructuring
As your business grows it may be necessary to look at how the business is organised and make changes. The main reason for restructuring is to ensure that the business is able to continue to achieve its objectives. If you are planning to make changes then it is imperative that you advise and involve your staff at the earliest opportunity. It is also key that you plan ahead and make necessary changes only as and when required in line with your business objectives. It is also important that you keep your customers, suppliers and partners up-to-date with any changes that may affect them.

Succession Planning
Having a formal, written succession plan allows you to know exactly what your plan is with regards the future of your business and what you need to do. It also enables you to identify any shortcomings, allowing you to make changes whilst you still can. Your succession plan needs to be communicated to all your stakeholders (staff, customers, suppliers) effectively and at the most appropriate time. It is key to make sure that they know exactly what is happening and when. As a business owner it is often hard to let go of your business that you have worked hard to build. Irrelevant of whether you are selling the business, ceasing to trade or have found a successor, it is important that you plan accordingly and put into place relevant processes. Please contact one of the advisors at Jersey Enterprise for any help you may need with succession planning.