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Needs Analysis

Employing people involves a cost for your business. There are the initial costs in terms of advertising or employment agencies fees to find the right employee. There is your time in terms of reviewing CV’s and arranging interviews. There is also the cost of any training that may be required for the successful candidate. You may need to buy them equipment to do the job, a desk and chair, a computer etc. Then there is the obvious cost of the salary plus the associated costs of Employer's National Insurance contributions.

Before you attempt to recruit a new employee you need to carefully identify the exact requirements and consider any alternatives. Is it possible to reorganise existing resources? Is this a temporary requirement and if so would could you use a temporary agency worker? Sometimes outsourcing can provide a practical and cost effective alternative to employing someone.

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