As a bookkeeper specialising in working with tradespeople, we know how challenging running a business can be. You probably get fed up with switching hats if you don’t have an internal marketing, legal, or HR department. But, that’s where we come in. We delve into our little black book of contacts to bring practical advice and tips from experts who can help you run your business. This month, we’ve called on our friends at Lodge Court, Berdene Kilbride and Ian Moore. Lodge Court provides tailored HR advice and solutions to their clients in and around West Sussex. Read on to discover tips and advice on HR support for tradespeople.
HR Support for Tradespeople – An Interview with Berdene Kilbride:
General HR Needs for Trades Businesses
Q: Firstly, what are the most common HR challenges trades businesses face as they grow?
BK: As trade businesses grow, they often struggle with recruitment and retention, as finding skilled workers and keeping them engaged is increasingly competitive. Training and development become essential to ensure employees stay updated with industry advancements and safety standards. Without proper training, businesses risk inefficiencies and non-compliance with regulations.
Q: At what stage should a trades business consider outsourcing HR support?
BK: A trade business should consider outsourcing HR support when HR tasks become too complex, time-consuming, or legally demanding to manage effectively. This often happens at key growth stages.
Q: What are the key benefits of working with an external HR provider compared to handling HR internally?
BK: For many trade businesses, outsourcing HR support can provide flexibility and expertise without the burden of managing HR internally, ensuring compliance, efficiency, and a more engaged workforce.
Hiring & Employment Contracts
Q: What should trades business owners consider when hiring their first employees?
BK: When hiring their first employees, trades business owners should focus on key areas such as:
- Legal Compliance: Ensure proper registration, tax setup, and workers’ compensation coverage.
- Clear Job Roles: Define responsibilities and expectations to attract the right candidates.
- Effective Hiring: Use job boards, trade schools, and referrals; conduct interviews and background checks.
- Payroll & Benefits: Set up payroll and consider offering benefits to improve retention.
- Training & Onboarding: Provide clear instructions on safety, company policies, and job expectations.
- Workplace Culture: Offer fair wages, good communication, and growth opportunities to retain staff.
Getting these right helps build a strong and reliable team.
Q: What are the different types of employment contracts (full-time, part-time, subcontractors, casual workers) that trades businesses should be aware of?
BK: Trade businesses should be aware of the employment contract types mentioned above, as each has different legal and financial implications:
- Full-time: Regular hours, job security, and benefits.
- Part-time: Fewer hours, pro-rata benefits, and flexibility.
- Casual: No guaranteed hours, higher pay per hour, no benefits.
- Subcontractors: Independent workers for specific projects with no long-term commitment.
Each contract type suits different business needs, so trade businesses should choose based on workload demands, budget, and compliance requirements.
Q: What are the legal must-haves for employment contracts for tradespeople?
BK: Employment contracts for tradespeople must include key legal requirements to ensure compliance and clarity:
- Job Details: Role, duties, work hours, and location.
- Pay & Benefits: Wages, overtime, allowances, and leave entitlements.
- Employment Type: Full-time, part-time, casual, or subcontractor.
- Termination Terms: Notice periods, redundancies, and dismissal conditions.
- Workplace Policies: Safety regulations, code of conduct, and dispute resolution.
Ensuring these elements are in place protects both the business and employees.
Q: How can trades businesses avoid hiring mistakes when expanding their teams?
BK: To avoid hiring mistakes, trade businesses should clearly define the job and what they expect from the person. Look for both the right skills and a good attitude. Use trusted sources like job boards or trade schools to find candidates. Always do background checks and interviews to ensure they’re a good fit. Lastly, ensure new hires are properly trained and introduced to the team so they can get up to speed quickly.
Compliance & Legal Considerations
Q: What employment laws and HR regulations do trades businesses often overlook or misunderstand?
BK: Trades businesses often overlook key laws, like the Fair Work Act (covering wages, overtime, and leave), Workplace Health and Safety (WHS) regulations, and the misclassification of workers as independent contractors. They may also ignore industry-specific pay and conditions rules, which set minimum pay rates and entitlements for workers in specific jobs, anti-discrimination laws, and fail to provide clear employment contracts.
Additionally, businesses may not fully comply with flexible work arrangements or family leave rules. Staying on top of these laws helps avoid legal issues and ensures fair treatment for employees.
Q: How should businesses handle right-to-work checks and employment contracts for subcontractors?
BK: Trade businesses should properly handle right-to-work checks and subcontractor contracts to comply with the law.
Firstly, always verify that subcontractors have the legal right to work in the country. This means checking passports, work visas, or other ID documents.
Next, even though subcontractors aren’t full-time employees, having a clear, written contract is still important. This should outline their work, how and when they’ll get paid, deadlines, and safety expectations. It’s also essential to clarify that subcontractors are responsible for their own taxes and insurance.
By taking these steps, businesses can avoid legal trouble and ensure everyone knows what’s expected.
Q: What are the consequences of not following proper HR procedures when hiring or dismissing staff?
BK: Not following proper HR procedures when hiring or dismissing staff can lead to big problems for trade businesses. If the hiring process isn’t fair or thorough, companies could face discrimination claims or end up with unqualified workers, which can cause performance or safety issues.
When dismissing someone, not following the right steps, like giving proper notice or an apparent reason, can lead to wrongful dismissal claims and costly legal trouble. It can also harm the business’s reputation and employee morale.
Holiday and Benefits
Q: What are the legal obligations regarding trade employees’ holiday pay, sick pay, and pensions?
BK: Employees are entitled to a minimum of 4 weeks of paid holiday each year, and if they don’t use it, they must be paid for it when they leave. For sick pay, workers are entitled to statutory sick pay (SSP) for a certain period, and you may need to provide additional sick pay depending on their contract. Regarding pensions, you must automatically enrol eligible employees in a pension scheme and contribute a percentage of their salary. However, employees can opt out of the scheme if they wish. These are key obligations to avoid legal issues and ensure fair treatment of your staff.
Q: How can trades businesses offer competitive benefits to attract and retain skilled workers without breaking the bank?
BK: Trades businesses can attract and keep skilled workers by offering benefits that don’t break the bank. Flexible hours and extra time off are great for work-life balance. Health perks, like gym memberships or discounted insurance, are also appealing. Providing training and development shows you’re invested in their growth. Simple recognition, like small bonuses or celebrating milestones, boosts morale without costing much. Creating a positive workplace where employees feel valued can help keep them around.
Managing Employees & Workplace Issues
Q: What common HR disputes arise in trades businesses, and how can they be prevented?
BK: Common HR disputes in trade businesses include pay issues, performance problems, safety concerns, and claims of unfair treatment or discrimination. Ensure contracts clearly outline pay, roles, and safety standards to prevent these. Regular performance reviews and training help address concerns early. Creating an open, respectful work environment where employees feel heard can also reduce the risk of conflicts.
Q: How can businesses effectively handle poor performance, lateness, or misconduct?
BK: Trade businesses should address issues quickly and fairly to handle poor performance, lateness, or misconduct. Set clear expectations and provide feedback or training when needed. For misconduct, apply consistent consequences like warnings. Document everything and give employees a chance to improve. If problems persist, follow the proper steps for more serious actions like suspension or termination.
Q: What should trades businesses do if they need to discipline or dismiss an employee?
BK: Following a fair and transparent process is essential if a trade business needs to discipline or dismiss an employee. First, ensure that the employee understands the issue by giving them a chance to explain. Provide written warnings and set expectations for improvement. If the problem continues, follow your company’s disciplinary procedure, keeping everything documented. For dismissal, provide the required notice or pay in lieu and follow any legal requirements. Treat the employee with respect throughout the process to avoid legal trouble.
Health & Safety and Wellbeing
Q: What are the HR responsibilities related to health and safety for trades businesses?
BK: Trade businesses must keep their workers safe by following health and safety laws, providing proper training, and ensuring everyone has the right gear. Regular safety checks and risk assessments help prevent accidents, and any incidents should be reported correctly. Creating a work culture where employees feel comfortable speaking up about hazards is also essential. Staying on top of these responsibilities protects the team and the business.
Q: How can HR support mental health and well-being in physically demanding trades jobs?
BK: HR can support mental health in trades by creating a positive work environment where employees feel valued. Encouraging open conversations, offering support programs, and ensuring fair workloads help prevent burnout. Regular breaks, work-life balance, and simply checking in on workers can make a big difference in keeping morale high.
Q: What should businesses do if an employee gets injured on the job?
BK: If an employee gets injured on the job, the first thing to do is make sure they get medical help right away. Document the incident properly and report it as required by law. If necessary, file a workers’ compensation claim. Review what happened to prevent future accidents and support the injured worker’s recovery, including a safe plan for them to return to work when ready.
HR Outsourcing: What to Expect
Q: What HR services can Lodge Court offer to trades businesses?
BK: We provide trade businesses with tailored HR support aligned with their unique challenges and goals, ensuring smooth people management and compliance with industry regulations. What makes us different is our personal touch, something you won’t always get with larger outsourced HR providers. Our retainer packages offer a cost-effective solution, with a fixed monthly price for peace of mind and the support of your very own dedicated HR Consultant.
Q: What are the cost considerations when outsourcing HR?
BK: When outsourcing HR, there are a few cost factors to consider. First, you’ll want to look at the monthly retainer fees or hourly rates the HR provider charges. Some offer set monthly packages, which make budgeting easier.
Also, be aware of any extra charges for training, legal advice, or specialised support. While outsourcing can be cheaper than hiring full-time HR staff, ensure the services fit your needs to avoid paying for unnecessary services.
Finally, consider the long-term savings from reduced legal risks, better compliance, and improved employee performance. These benefits can ultimately make outsourcing more cost-effective.
We hope you’ve found this article on HR support for tradespeople helpful. If you need more advice or need to outsource your HR, you can contact the good people at Lodge Court HERE. Additionally, if you need help with bookkeeping, we’re the team for you. Get in touch with us HERE.