Small business agony uncle James Caan offers his advice on the best way to employ staff.
Dear James:
I have recently started a catering company and I’m wondering whether I should employ staff on zero-hour contracts or have freelancers if and when I need them. What are the pros and cons? - Sav
James says:
Zero hour contracts are a hot topic and there is much debate as to whether this is a good option for both employers and employees. There are certainly benefits to these contracts, however, employers shouldn’t abuse this flexible arrangement.
Before you take anybody on, think about what demands you have, and if this type of contract would suit those demands. When you speak to prospective candidates, be honest, if you can’t guarantee the hours you should communicate this to them. You need to ensure the employee is happy with this from the outset.
For start-up firms, it can be a real cost saver, especially in an industry like catering where demand often fluctuates.
The set-up also benefits employees who want occasional earnings. One group of people who you may think about targeting are people that have worked in catering before but are now retired. They will certainly have the skills and experience, as well as the free time. They may not be looking for regular commitment, so flexible work is perfect for them.
As an employer, be wary of gaining a reputation for keeping people on zero hour contracts but never giving them the hours. This is where research pays off – if you have a good idea of demand levels in both your industry and location, you can make an informed decision about what type of workers you need.
Consider whether casual workers add enough value. It may be efficient from a financial point of view, but remember that permanent staff members will have more of an attachment to the company. They will be able to understand you and your vision better than anybody else. As important as the finances are, the passion of the people within the company can take it to the next level.
James Caan's book, How to Start Your Business in 7 Days, is out now.
