I have been working as a sole trader for nearly 3 years, and am in the fortunate position of now having a team helping me (http://www.tayloraccountancy.net/team.htm). They all happen to be self-employed mums, working from home, and I am thrilled with the work they are doing for me.
A report out in the Daily Telegraph today (5th July 2011) has published the findings of the British Chambers of Commerce with regard to sole traders attitudes to taking on staff. According to the report, one in three business owners considering expansion are deterred by employing someone due to the perceived costs of compliance with employment laws. Further considerations include national insurance contributions, and the forthcoming change to pension provisions, which will make it mandatory for employers to offer staff a pension plan and pay a minimum contribution of 3% by 2015. For me personally, the sheer volume of employment law ( I have a tome in my bookcase on the subject) which changes every year, is hard to keep up with, and the responsibilities to staff of providing paid sickness and holidays, is certainly a factor in using self-employed workers rather than employees. Certainly, the vast majority of my self-employed sole traders are outsourcing various tasks, such as admin, to other self-employed professionals rather than actually recruiting permanent staff members.
What do you think about this? Are employment laws too rigid and off-putting for you in your business? Why have you made the choices you have with regard to human resources? And can you give sole traders any advice based on your experiences?
July 7, 2011 at 12:21 pm |
I employ staff to work within my sole trader business. I feel they have to be employed due to the nature of the work they are doing (it is defined where, when and how they do their work). With admin or office workers it’s probably easier to use self employed staff.