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07 Oct 2019

Finding the right employee

I have more work than I have time for, but I am afraid that hiring an employee would be too expensive. What should I take into consideration and account for?

In addition to the gross salary of an employee, the employer's contributions include the pension contribution, social security contribution, mandatory insurance payments, and the unemployment insurance contribution.

In addition, the accrual of additional holiday pay as well as other social expenses, such as family leave expenses, is determined by a collective agreement. You should review the relevant collective agreement carefully, as the agreements may have significant differences.

As a general rule, you should multiply the employee's gross salary by at least 1.5 to find out the actual cost. From the perspective of an entrepreneur, the gross cost of hiring an employee should be counterbalanced with added sales to keep your company out of the red.

Hiring a full-time worker is a significant annual outlay. You should consider the hire very carefully to ensure that it is economically viable. Instead of hiring a full-time employee, you might consider taking on a part-time worker.


I have heard that it is possible to receive a subsidy for hiring an employee. From where and how?

It is possible to receive a pay subsidy for hiring an unemployed person. For example, there are various subsidies available for hiring young people. However, employment subsidies are designed to help employees find employment and as such are not intended for companies to lower the cost of hiring employees. Nevertheless, subsidies can provide an excellent method for lowering the risk of hiring and finding a great new employee.

Another option would be to train a new employee through an apprenticeship. Students’ practical training periods can also be useful. The cycle of trainees allows you to monitor how the students handle their work, thus making it possible to find a good employee. 


What to do in case of a bad hire? How can I avoid this?

In a successful recruitment, the new employee fits the company and the position in question. Before you begin the recruitment process, you should have a concrete idea of the tasks the new hire will be performing and the objectives and expectations for them. You should think about the interview questions carefully and also pay attention to the applicant's attitude and motivation during the interview.

The trial period should be long enough. The trial period will determine a lot and you should plan it out carefully. Create a solid familiarization plan to support a successful trial period. Monitor whether the person and the position are suitable for each other as expected. Engage in follow-up discussions during the trial period and provide support where necessary.


What if the requirement for additional hands is seasonal? Is there a solution for this?

Seasonal employees are available through staffing agencies, for example. Educational institutions can also provide students for short-term employment as well as trainees who are suitable for your work situation. We recommend registering yourself in the Central Uusimaa Duuniportaali as an employer in search of seasonal employees to find suitable candidates for you. TE services can also help you with seasonal hires. Hiring may not always be necessary, as another entrepreneur may also be able to help you with a temporary requirement.

 

We will gladly help you with any questions you might have on hiring subsidies. Book an appointment keuke (at) keuke.fi, 050 341 3210.

 
 
 

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Keski-Uudenmaan Kehittämiskeskus Oy

Business Development Centre Ltd. Helsinki Region North
Puuvalonaukio 2D, 2. krs, 04200 Kerava

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