While you may not need to hire employees at first, chances are you'll have to at some point, particularly as your business grows. It is important to understand the responsibilities you take on when you become an employer.
As an employer, it's your responsibility to know what employment and workplace health and safety standards you're required to follow. These standards are covered in four Acts administered and enforced by the Ministry of Labour:
The quality of the people you recruit will have a great impact on your company - its ability to serve customer needs, its growth and its profitability. Hiring mistakes can be costly. Before you hire anyone, you should:
Determining compensation can be a delicate balance of satisfying employee expectations and keeping you profitable. Consider the base compensation, any commissions, bonuses or profit sharing, and benefits. In determining what the job is worth, check on industry standards by calling around.
Beyond the mandatory benefits, such as vacation pay, maternity and parental leave, worker's compensation insurance and contributions as an employer to employment insurance and the Canadian Pension Plan, you can offer other benefits like dental, drug, long-term disability and life insurance, and a pension plan.
When estimating the actual cost of an employee, use the 1.2 rule: take the employee's salary and multiply it by 1.2. This will compensate for days off for illness, vacations and statutory holidays.