Ask the experts

Do you have a burning question that you would like the answer to? Or maybe you’re looking for some advice to help your business? In each edition some questions will be shared and answered by some of The Business Bulletin experts.

Q. I have staff – do I really need an HR policy? It seems like a lot of red tape – is there any benefit?

A. The simple answer is no you don’t. However, good employment documentation can be invaluable as a management tool to small business owners. If they are well drafted, policies and contracts can guide business owners in managing their employees effectively, guide them in performing well, avoid as far as possible problems arising in the employment relationship and deal with them quickly and effectively when they do.

An Employee, or Company, Handbook is not explicitly required by UK law but can be a useful tool for a number of reasons:

■ Introduces employees to your culture, mission and values;

■ Educates employees about what they can expect from management and leadership;

■ Helps ensure key company policies are clearly and consistently communicated;

■ Showcase the benefits you offer;

■ Helps defend against employee claims; and

■ Clarifies where employees can turn for help.

If you do have a Handbook, or separate policies, remember:

■ to review them regularly in line with any changes in employment law and continue to remain fit for purpose;

■ it is important that your employment documentation is tailored to your particular business, in the style and tone that reflects your culture;

■ they should be readily understood by both employer and employee i.e. in plain English, in a user-friendly, easy-to-understand tone, but also ensuring that you as the employer are legally wellprotected;

■ to decide whether they are contractual or non-contractual. If contractual, it will be treated as though all of its policies were included within the employee’s contract, so the employee will be strictly bound by them. Be careful, though, as this works both ways – if the employer fails to adhere to its own policy, it may be liable for breach of contract, opening the door for constructive dismissal claims. Non-contractual documentation allows much more flexibility – policies can be altered and changed without requiring employee consent, and to quickly accommodate any change in the law. Your handbook should explicitly state whether it is or is not contractual.

Sue Pardy - Face2face HR

Q. Is it better to hire or outsource?

A. Being a Virtual Assistant, I come across this question a lot! I’d recommend considering the below – it may help you make your decision as to whether employ or outsource:

Do you have a consistent amount of work each week? Can you fill 10/20/ 40 hours of someone’s time – every week? If you were to take on an employee, you will be paying them for the hours you contract them – whether you have work to give them or not. Not a problem if you definitely have a consistent amount of hours work for them every week, but if you’re uncertain that you’d be able to guarantee the workload you would be better off considering outsourcing. Working with a freelancer/consultant means that they only work for you when you need them – there’s no wages or overheads during your quieter periods.

Have you got the time to run payroll or the funds to outsource it to an accountant? Full payroll must be run if you have an employee, no matter how many hours they work for you. The relevant tax and NI contributions need to be made, as well as the usual perks such as holiday pay, sick pay, pensions, etc. If you’re a limited company it may be that you are already running payroll for yourself

and therefore it’s not a hassle to add one more person. But if this isn’t your operating model, running payroll and providing all the necessary employee benefits may be a hassle that you can do without – by outsourcing. Freelancers and consultants take care of their own NI, tax, sick pay, holiday pay, pensions etc.

Will an employee require lots of equipment? If you are bringing an employee into your business, you will need to provide them with the necessary equipment(such as a laptop, mobile phone, etc)to do their job effectively. Freelancers and consultants will use their own equipment meaning the cost falls on them, not you.

Do you want someone to work in the office with you? Some freelancers and consultants will offer on-site support, whereas others don't. If it’s absolutely imperative that they are working alongside you on-site an employee may be your best bet. However, it’s always worth asking the question if you have a freelancer or consultant in mind – but just don’t be surprised if they say no.

Hayley White - VirtuVA