Preparing to hire new employees

You’ve decided it’s time to hire new staff to provide extra support for your business, helping to meet existing or future demand from your customers or fill a skills gap to help you grow.

Once you've made the decision that it's the right time to hire, there are a few things that you may want to consider that other businesses have found helpful.

This includes the different types of contract you could offer, the financial implications for your business, and the benefits of building a diverse workforce.

This article is part two of our ten-part series on hiring and onboarding. In the series, you'll learn how to prepare for the recruitment process, select the best candidate and successfully onboard your new starter. You can see other articles in the series at the bottom of the page.

Employment contracts. What are the options?

Bringing on a full-time employee may not be necessary straight away. Tasks and projects may be fixed-term or there could be uncertainty over future contracts or orders. Considering a freelancer or contractor for a fixed-term period may be a better option in this instance, and it can allow you to test the water before you hire a permanent member of staff.

If you’re ready to take on a permanent employee, then great! Permanent employees are best placed to invest in your business’ goals and vision. In return, you’ll be better able to support their growth and development.

You may also want to consider taking on an apprentice. Apprentices attract government support, are typically motivated to learn new skills and you can adapt their training according to the needs of your business.

Considering the financials

There are a number of costs and financial factors you may want to think about as you prepare to hire, such as:

  • Salary and benefits linked to the role, including how it compares to industry standards and competitors
  • Tax and National Insurance contributions
  • Pension contributions
  • Employers’ liability insurance
  • The recruitment process, including any commission offered to recruiters if you use an external agency

These financial costs vary depending on the type of contract you offer and you may want to speak to your accountant about the specifics as you consider what’s right for your business at this particular time.

Identify gaps in your recruitment process with our hiring checklist


Analysis of business financial performance by McKinsey shows that building a diverse workforce can pay dividends for a business’ profitability, innovation, engagement and retention. If you want to make your hiring process more inclusive and unbiased, but you’re not sure where to start, Equality Works have created a guide with some clear steps you can take.

Key takeaways

  • Consider what type of support you need: full time employee, fixed-term contractor, occasional freelancer, or anything in-between
  • The costs of a new employee go way beyond their wages, so review the financial implications before making any decisions
  • Building diversity into your hiring process is essential to creating an inclusive workplace, and ultimately is likely to improve engagement and retention

Read more about hiring and onboarding

You can revisit the previous article in our series below:

Take the next step in our hiring and onboarding series

Three steps to creating the perfect job advert