1. identify your business needs

1.1. Recruit to meet your business needs.

Use your business plan to anticipate future requirements. For example, if you plan to break into new markets you might need to recruit sales people with relevant skills and experience.

Identify seasonal fluctuations in your business and work out how you will cover them. For example, by using temporary or casual workers, or self-employed contractors.

Decide on an ideal balance of full-time employees and other solutions.

Decide when to recruit. For example, by analysing likely levels of staff turnover, or when increased output is most likely to be required.

1.2. Recruit to tackle problem areas.

For example, poor performance may be because of employee shortages.

Identify employees who are not performing. Work out if existing employees could be retrained, or if additional employees are needed.

Consider using a qualified consultant for an objective assessment of recruitment problems, such as high employee turnover.

1.3. Benchmark salaries in your industry.

Read the news and job sections of appropriate publications.

Talk to your local Business Link or Jobcentre Plus about local rates.

For more information about average earnings relevant to your business, visit the Labour Market pages of the Office for National Statistics website

2. Define what you want

2.1. Draft a detailed job description.

This is especially important for new posts and when posts change.

Set out the main responsibilities, and the regular and occasional tasks.

Detail reporting lines and team responsibilities.

To find out more about writing a job description visit the 'Employing people' pages of the Business Link website

2.2. Set out the skills you want the recruit to have in a person specification.

Use the job description to work out which skills and knowledge are needed.

Identify what you need immediately and what can be developed through training.

The personal skills you are looking for might reflect the style and values of your business, or the balance of personalities in existing teams.

Give all skills a weighting according to their importance and decide which are essential, and which are desirable.

To find out more about writing a job description visit the 'Employing people' pages of the Business Link website

2.3. Decide how much you are prepared to pay.

Decide on your offer, taking industry and local rates into account.

Link offers to your existing pay structures or the value you expect the employee to bring to your business.

Beware of antagonising any existing employees by offering too much and ensure you give equal pay for work of equal value.

3. Find candidates

3.1. Advertise externally.

Advertise in appropriate publications.

You can also advertise on specialist job sites.

• For example, target employees using national newspapers or specialist trade magazines. Unless you expect the candidate to relocate to your area, local newspapers may be the best option.
• The cheapest way to advertise is on your website, but this may be inefficient if your site does not attract enough visitors.
• Use your industry's business portals to find sites that cover your geographical or business area.

3.2. Consider using an employment agency.

Agencies can be helpful when recruiting specialist or temporary employees, or recruits from skills shortage areas.

Hiring temporary staff can be a good way to get to know employees before offering them permanent positions.

Where possible, use an agency with experience in your business sector.

Make sure you provide a detailed brief of your requirements (see section 4.1).

Negotiate a clear contract, detailing what the agency will do, what charges are payable and what will happen if an employee leaves soon after joining you (most agencies provide a rebate).

Control the cost.

• For example, if you are recruiting temporary or casual employees, it is cheaper to recruit in batches.
• Agencies usually charge ten to 30 per cent of the first year's salary, depending on the size of the salary involved. At the 30 per cent rate, you might pay ten per cent of the salary upfront, ten per cent on introduction, and the rest on appointment, or the whole fee once the candidate has started work.
• Be prepared to negotiate terms. For example, many agencies require payment within 14 days.
• Avoid exclusive agreements in exchange for lower rates, until the agency has proved it can provide suitable candidates.

3.3. Use Jobcentre Plus.

It is particularly useful for finding temporary and permanent employees earning up to £20,000 a year.

There is no charge, and Jobcentre Plus can shortlist applicants for you.

Under the New Deal, you can get financial assistance if you recruit unemployed candidates or people with disabilities.

For more information visit www.jobcentreplus.gov.uk

3.4. Build relationships with local schools, colleges and universities.

This can help you attract promising candidates for trainee positions.

Be ready to interview candidates when they start to look for work at the beginning of their final year.

4. Attract candidates

4.1. Write job advertisements and agency briefs with care.

Model your own advertisement on the best advertisements for similar jobs.

Do not make any stipulations which are discriminatory. Stick to the requirements of the job only.

Describe your business. State what you do and where you are located.

Detail the important elements of the job. Remember to highlight attractive features. For example, explain what makes the job interesting and why your company is good to work for.

Indicate the salary involved. Specify a range so that you can vary your final offer according to what a candidate seems worth.

Include any training and promotion opportunities.

State what experience, skills and qualifications you want from a candidate.

Tell candidates how to apply and the closing date for applications.

4.2. Invite applications in a form that helps you assess each candidate.

A CV and covering letter should give you the information you need to draw up an interview shortlist.

Using your own application form can help you get more specific information, and provides an easier and fairer way to compare candidates.

5. Go through the selection process

5.1. Create a checklist based on your job description and person specification.

This will help you to narrow your choices down to the most suitable people to invite to interview.

Look for evidence of success in previous work.

• Distinguish between tasks applicants have carried out and areas where they have managed the activities of others.

5.2. Prepare a shortlist.

Invite shortlisted candidates to an interview.

Send an interview pack with relevant information about your company.

Keep some candidates in reserve in case the most promising applicants turn out to be unsuitable.

Send rejection letters to unsuccessful candidates as soon as possible.

• Tell them where, when, and how long the interview will be, what testing or other requirements you have and who they should ask for when they arrive.

5.3. Interview shortlisted candidates.

Use two or more interviewers. At least one should have an excellent knowledge of any special requirements of the job.

Ask questions, using your checklist as a guide. For example, if you are interviewing team managers, ask for examples that demonstrate their leadership abilities.

Give more information about the job and sell it to the candidate.

Test for relevant skills and experience (see section 5.4).

Record the performance of each candidate. Give each one a score, using your weighting system (see section 2.2).

If necessary, arrange second interviews for the best candidates.

Tell candidates when they will hear from you. Beware of making verbal offers of employment: these are legally binding.

5.4. Take up references for the best candidate.

Ask for written details of the candidate's responsibilities and performance.

Check any other crucial details. For example, essential qualifications, dates of employment and salary.

If none of the candidates are suitable, start again. Evaluate what went wrong.

6. Make the job offer

6.1. Send an offer letter to your preferred candidate.

Say when the job starts and how much time the candidate has to accept the offer.

State what salary you are offering and when it will be reviewed.

Make it clear if the offer is subject to any conditions. For example, references (see section 5.4).

For permanent employees, state the length of the probation period (usually three to six months).

Supply written terms and conditions with your offer letter (or no later than two months after the date of employment).

6.2. Send polite rejection letters to unsuccessful candidates.

It may be appropriate to offer opportunities for feedback.

6.3. Plan a warm welcome for new employees.

This can significantly improve their attitude, even if they only work on a temporary or casual basis.

Tell other employees when someone new is joining your company.

Show new employees round and make introductions to key colleagues.

6.4. Provide an induction for new employees.

Provide a company handbook, information about your business and relevant health and safety information.

Support the employee through the probation period with regular appraisals and organise any training needed.

7. Review your processes

7.1. Analyse your recruitment methods.

Look at the different recruitment channels you use. Are they delivering the quality of applicant you want?

Analyse how many unsuitable applicants you get. Compare their applications with your advertisements. You might need to change the information you provide.

7.2. Monitor your employee turnover.

Interview employees when they leave, to find out why. You may find you recruited the wrong people in the first place.