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  • Step 12: Hiring Considerations
  • Step 13: Employer Responsibilities
  • Step 14: Employee Entitlements
  • Step 15: The Recruitment Process
    • Recruitment Costs
  • Step 16: Legal Requirements
    • Awards and Conditions
    • Superannuation
    • Workers’ Compensation
    • Occupational Health and Safety
    • Equal Employment Opportunity


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Title: How to Turn Your Idea Into a Multi-Million Dollar Business (Chapter 4)

Date Published: September 25, 2015

Running Time: 16:22 minutes


Hi, this is John Millar. I’m the Naked Business Coach, stripping business back to its bare basics. As a special bonus, we’re giving you a free copy of all the chapters in How to Turn Your Idea into a Multi-Million Dollar Business.

Now this is available in Amazon and you can buy a copy in hard copy or kindle version. But before it gets released to iTunes and to Audible, I thought I’d give it to you as a free trial. I hope you enjoy it, took me some years to write. And I hope you look forward to some of the other things that we’ve got that you’re going to get absolutely free.

Thanks so much and welcome to The Naked Business Coach Podcasting Channel.

The Entrepreneur’s Guide Series

How to Turn Your Idea into a Multi-Million Dollar Business (And Avoid the Mistakes that Send Most Business Owners into Bankruptcy)

By John Millar

Chapter 4: Human Resources and Employee Management

If you intend to employ people in your small business, you’ll need procedures for how you will hire, manage, and fire them effectively. You must do this before you hire them and not after, or you can encounter several problems, including not having the management skills, hiring the wrong person, or hiring the right people but putting them in the wrong job.

Don’t just consider their skills; also look at their ability to grow, their value to your business, their commitment to your culture and goals, and their desire to go the extra mile for your business.

Your skills in recognizing and recruiting the best employees will develop over time, and there are plenty of resources and tools around to help you really nail this part of your business early on. To assist you, we have a series of online tools to help you test, evaluate, and benchmark new recruits and existing team members alike. Visit to find a series of tools that take into account various aptitudes, including certain industry skills and knowledge, IQ, Emotional Intelligence, Sales Skills, management skills and more. In this chapter, we present information about the basic consider­ations involved with employing people, your obligations, employee entitlements, the recruitment process, and the important legal issues.

Step 12: Hiring Considerations

The people working within your business each fall under a category of employment. Each category has different obligations for both you and your employees. The first step is to determine whether your workers are classed as employees or contractors.

An employee is someone who works under a contract of employment.

Those who are not employees are referred to as independent contractors or sub-contractors.

There are significant differences legally between the two regarding awards, retirement, insurance and compensation. In our coaching and training programs, we offer a number of tools and training styles we use to help our clients determine what type of workers they employ, when they employ them, and what role they should be in.

It is important to establish the most suitable type of employment for each individual situation when recruiting new staff. The types of employment you may wish to consider include:

  • Full-time employees
  • Part-time employees
  • Casual employees
  • Probationary employees
  • Fixed-contract employees
  • Contractors

You will note there is no category for slaves or bondsmen; you should have an obligation to your team to consider them as your greatest asset.

There are many costs associated with employing people. It is important for you to take all of these costs into account during the employment process. Some of the costs that you will need to take into consideration include:

  • Recruitment costs
  • Training and development costs
  • Wages
  • Superannuation
  • Annual leaves
  • Sick leaves
  • Maternity leaves
  • Public holidays

Many small business owners make one or both of the following rookie mistakes: (1) hiring someone prematurely or (2) trying to save money by not hiring anyone (and attempting to do everything themselves). Both strategies are fraught with danger. If you are in doubt about how to proceed, it is best to err on the side of caution: don’t hire someone. A miss-hire is one of the most expensive mistakes you will make during your early years. Instead, consider outsourcing; use contractors to do the job, preferably those who have some serious skin in the game, meaning they must perform or you can release them.

On top of these costs, in many countries you may be obliged to pay for insurance to cover Workers Compensa­tion. Check to see if there is a variation of this in your country. Insurance expenses can vary greatly depending on the level of risk in your particular industry.

Employing new people also comes with a number of taxation requirements. These can vary from state to state and country to country, so you should visit the local tax authority and consult with your accountant for specific advice.


Step 13: Employer Responsibilities

In most countries, you have various obligations as an employer, including legal, paperwork and records, staff health and safety in the workplace, superannuation and taxation, an­ti-discrimination practices, dispute resolution, and insurance.

Legal. Your legal obligations relate to paying the correct wages to staff, reimbursing employees for work-related expenses, and maintaining the proper relationship, i.e., not behaving in a way that could be damaging to their reputation or future earning potential.

Paperwork and records. An employer must also keep good records and paperwork in order to make sound and accurate business decisions. This will help you avoid making errors or omissions when paying staff and keeping track of their entitlements.

Staff health and safety in the workplace. It is an obligation of the employer to provide a safe workplace that employees can feel comfortable working within. It should be free of physical hazards as well as possible issues relating to employee mental health. Employers should aim to reduce the dangers that their employees are exposed to by following the relevant local Occupational Health and Safety guidelines.

Superannuation and taxation. Employers may be obliged to pay superannuation to employees based on their type of employment. Tax regulations must also be followed, as outlined by your local tax regulations.

Anti-discrimination practices. Employers must ensure that the workplace is free from discrimination and any other forms of harassment. All staff must have equal opportunity in the workplace in regards to incentives and promotions. This is important not only from a legal standpoint but to maintain good employee relations.

Dispute resolution. When problems arise in the workplace, an employer should have a formal, well-docu­mented dispute resolution process in place to deal with the issues in a consistent, fair, and well documented fashion.

Insurance. Certain insurance requirements may be in effect in your region, and you will be required to follow them as an employer.

Step 14: Employee Entitlements

When the time comes for you to take on new employees, you should be aware of all the relevant employee entitlements. These can range from wages and work conditions to holidays, leave, superannuation and redundancy entitlements. Check your local laws and regulations. Here is an example: many jobs in Australia are covered by a federal or state award that outlines the rights and obligations of employers and the minimum legal wage rates and conditions associated with each type of work. These regulations vary from country to country, but in Australia for example, they are outlined by Fair Work Australia.

In some workplaces, individuals may be covered by an agreement that sets out specific wages, entitlements and conditions of employment. As an employer, you are often required to grant employees certain leave and holiday enti­tlements. Most workers are paid for public holidays, except for contract or casual employees who are only paid for hours worked. Other paid leave includes annual or recreational leave, sick leave, and long service leave. Each employee’s award or agreement will contain information on their holiday and leave entitlements and the relevant pay arrangements.

There are also regulations regarding maximum hours and limits on the number of consecutive days an employee may be required to work. In other scenarios, regulations may not be in place and workers may be employed on a written contract of employment which sets out specific conditions and enti­tlements. In some venues, employees are entitled to superan­nuation payments from their employer. Employees that have been made redundant also have a number of entitlements.

A good approach to employ is to treat your team as you would prefer to be treated: with professionalism, compassion, and kindness; and if you have hired the right people in the first place, you will be repaid many times over by their dedication and commitment to you and your business.

Step 15: The Recruitment Process

If you plan to employ new workers, first determine the type of employees most suitable for the positions you require and the skills and attributes you are looking for in the employees. Our clients use a variety of psychometric benchmarking, testing, and evaluation tools that not only assess a potential team member’s IQ but also their EQ (Emotional Intelligence), as well as their integrity and work ethics.

We offer an online or live recruitment training course at:

The training addresses recruitment, leadership, developing a winning team, and more with a simple step-by-step process showing you what to do or not do all the while avoiding some of those less than reputable merchants often referred to as “recruitment agencies.”

Recruitment Costs

Before you start advertising for additions to your workforce, consider the relevant costs associated with employing new people. It is also a good idea to prepare a job description that defines the role, responsibilities, and functions of the new position. This can help you to identify the knowledge, experience, and skill requirements of your future employees.

Once you have prepared a job description, consider how you will advertise the position. There are a number of ways you can do this, including newspapers, internet-based employment sites, or through a local or regional employment agency. It is important to note that when advertising for a position, you are required by law not to use discriminatory language that may exclude potential employees based on race, age, sex, marital status, family status or responsibility, pregnancy, religious and political beliefs, disability, gender history, or sexual orientation.

Have a solid plan for your interview process. Ensure that you ask questions relevant to the job description. Try to assess each candidate based on the quality and honesty of their answers, and notify each of them with an answer as soon as you have made your decision.

The success of your recruiting will rely on your knowledge of the process and how well you:

  • Advertise
  • Select the right applicants
  • Interview
  • Document a formal offer of employment

A number of resources are available to assist you and help you develop your knowledge of the recruitment process. We have developed training, support, and tools to help our clients with their recruitment needs. For more information, visit www.

Step 16: Legal Requirements

As an employer, you have a number of legal requirements and obligations to adhere to. These are related to awards and conditions, superannuation, compensation and OH&S regulations. It is critical that you have enough knowledge and guidance in this area to comply with your local laws. Remember: there is a reason business lawyers had to study so long to become experts.

Awards and Conditions

Your legal requirements as an employer oblige you to provide a minimum award for your employees and offer certain conditions. In Australia, for example, federal and state legislation is in effect to standardize workplace awards and conditions.

These standards outline minimum requirements for:

  • Basic rates of pay and casual loadings
  • Maximum hours of work
  • Leave entitlements
  • Other related entitlements


As an employer, you may have a legal obligation to provide superannuation support to your employees. The purpose of compulsory superannuation is to ensure as many people as possible will have income support when they retire. There are penalties for employers who fail to provide minimum retirement contributions for their employees. Employers who make late contributions may also be obliged to pay penalties to the tax office that enforces these obligations.

Workers’ Compensation

In many regions of the world, employers must provide Workers’ Compensation insurance for their employees. Workers’ compensation provides valuable protection to cover loss of earning capacity, medical expenses, and rehabilita­tion costs in the event of a work-related accident, illness, or injury. It also provides for expenses associated with assisting employees who are returning to work.

All employers must ensure that they have a Workers’ Com­pensation policy to insure themselves against compensation claims for workplace-related injuries. 56 Human Resources & Employe Management57

Occupational Health and Safety

As an employer, it is a legal requirement that you abide by the occupational health and safety (OH&S) regulations. If you fail to comply with these regulations, you can be liable to prosecution and fines. Personally, I see this not only as an obligation, but also as an opportunity to ensure that my team goes home safely to their family and loved ones at the end of every day. I encourage you to not just meet, but to exceed the minimum requirements. One slip-up here can cost a worker’s life or result in serious injury. I like being proud of the guy I see in the mirror each day. Your obligations as an employer include ensuring the following:

  • Safe working premises
  • Safe equipment, machinery and substances
  • Safe systems and procedures of work
  • Adequate information, instruction, training, and supervision
  • A suitable working environment and facilities

Equal Employment Opportunity

As an employer, you are required to provide equal employment opportunities to all members of the community. Equal employment opportunity is about ensuring that all job seekers share equal access to work prospects and positions. Without getting carried away with being, “politically correct,” you need to ensure that you hire the right people for the right reasons for the right job regardless of their race, gender, sexual or political persuasion and so on. This can be achieved by making sure yor workplace and recruitment processes are free from all forms of unlawful discrimination and harassment.

Check out the online business training information by visiting the following website:

Once there, look up the Business Essentials Series Modules 8, 11, and 12. They cover all of the fundamentals you will need to work on before doing anything more in this area. Also included in these training programs are a great DVD, CD, Workbook and various tools to help you.


John Millar

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