commercial loan

What to Consider When Employing Someone for the First Time

May 9, 2022

Employing and keeping the right people for your business can play a major role in achieving success. Hiring employees can be time-consuming and expensive, but it is very important that you do it right if you want to grow your business. If you get it right, then your staff can become your most valuable asset.

Following are some steps you should follow in order to make sure that you comply with New Zealand employment law during and after the hiring process.

1. Create a Clear Job Description

Make sure you are clear about the kind of person you want to hire, the amount you are willing to pay, and the skills they require. Keep an accurate record of each candidate throughout the hiring process, this includes their weaknesses, strengths, expectations, as well as interview notes. This information will be useful during the candidate selection process.

2. Employment Type

It’s important to consider which employment type you need. Each type of employment can mean different set of responsibilities for the employee.

Depending on certain requirements, you might consider employing a:

  • Permanent employee
  • Temporary employee
  • Causal employee
  • Apprentice or trainee
  • Contractor

3. Determine Who is Doing the Recruiting

There are many tasks involved in the recruitment process. These include:

  • Writing the job description
  • Advertising the job (both offline and online)
  • Communicating with potential candidates
  • Answering questions about your business and the job
  • Interviewing and evaluating applicants
  • Communicating with candidates that didn’t get the job

The recruitment process can take a lot of time which you may not have. So, it might be a good idea to outsource the recruiting job to someone in your team.

4. The Recruitment Process

Following are some steps to follow if you manage the recruitment process yourself:

  • Advertising the job
  • Evaluating the applications
  • Conducting interviews and reference checking
  • Selecting the best candidate

5. Make Sure Each Employee Has an IRD Number

Every employee you hire must have an Inland Revenue number. Also known as an IRD number, this number is used by Inland Revenue to identify and categorize employees for tax purposes. You also need an IRD number as an employer. Anyone can apply for this online.

6. Hiring People from Overseas

If you are considering to hire workers from overseas, then you must make sure they have the correct type of visa and they are allowed to work in New Zealand.

Overseas workers may include:

  • Refugees
  • People on a working holiday
  • International students
  • Workers with trade or professional qualifications

7. Sign the Employment Agreement

Once you have selected the best candidates, it is time to give them a written employment agreement that is specific to the type of the employees. It should include all the agreed conditions. Make sure that the employees have signed the agreement before they start working.

8. Help Your Employees Get Started

Your new employees may not understand everything unless you help them out. Apart from providing all the job-related information your new employees need to learn, you should also make sure they know their pay and tax details are accurate. Talk to your tax agent, accountant, or Inland Revenue to make sure you understand your obligations and get everything right.

9. Understand the Rights of Your Employees

Your new employees should make your life easier. But it is normal for the workload to increase when they first begin. This is because they are still coming up-to-speed with everything. During that time, you must not forget about the rights of your employees.

New Zealand law sets out minimum entitlements and rights for all employees, whether it is included in their employment agreement or not. Make sure your employment agreement doesn’t provide for less than the minimum rights.

Following are the basic rights for your employees:

  • Minimum pay
  • Paid time off
  • Setting an employee’s minimum rights
  • Sick leave
  • Public holidays
  • Bereavement leave
  • Making sure they are not unfairly discriminated against
  • An employee’s right to refuse to do work due to safety reasons

10. Be Clear About Your Company’s Goals and Expectations

Whether you have hired one new employee or many, it is important that you define and agree on what is expected of them from their first day. You should be clear about this during the interview process.

Final Word

Your employees are your firm’s most valuable asset. Good people are hard to find and hiring can be expensive and time consuming. Whether you are hiring one employee or many, it is important to follow the above-mentioned steps. If you get it right, then you will ensure that you hire the right people.


As always, Spinach care about the health and success of your business. If you need to discuss financing for your business, do call us on 0800 SPINACH or 0800 774622 and one of our lending specialists will be glad to help.