Guide to Recruiting and Hiring Employees in the UK: Key Steps for Employers

How to Recruit and Hire Employees in the UK: A Simple Guide for Employers

Hiring the right people for your business can feel a bit daunting—especially if you’re new to it. Whether you’re launching a startup, expanding a small business, or replacing a team member, knowing how to recruit and hire employees in the UK the right way is key to building a strong team and staying on the right side of the law.

In this blog post, we’ll walk you through the recruitment and hiring process step by step—even if you’ve never hired anyone before. We’ll also sprinkle in some friendly advice and tips to make things a little easier.

So, grab a cup of tea and let’s dive in!

Why Is Proper Hiring So Important?

Think of hiring the way you think about building a house. If your foundation (your team!) is strong, everything else becomes easier. But if you rush it or don’t get it right, problems can pop up later—like low productivity, unhappy workers, or even legal issues.

Hiring the right way not only helps you find the best person for the job, but it also protects your business and creates a positive experience for candidates.

Step-by-Step Guide to Hiring in the UK

Let’s break this process down into easy-to-follow steps.

Step 1: Decide What Kind of Worker You Need

Before posting a job ad, think carefully about who you’re looking for.

Ask yourself:

  • Do I need someone full-time or part-time?
  • Is this a temporary or permanent job?
  • Should this person be employed or self-employed?

In the UK, employment status matters. It affects things like pay, tax, and employment rights.

Types of workers include:

  • Employees: Work for you on agreed terms, usually entitled to sick pay, holiday, and maternity/paternity leave.
  • Workers: Have fewer rights than employees, often hired for casual or freelance work.
  • Self-employed: Run their own business and handle their own taxes. You’re their client, not their boss.

Not sure where your candidate fits? You can always ask HMRC for help checking employment status.

Step 2: Create a Fair and Legal Job Advert

Your job ad should be clear, honest, and free from discrimination.

Include these details:

  • Job title and description
  • Hours (full-time or part-time)
  • Salary (give a range if you’re flexible)
  • Location
  • Essential and desirable skills

Legal tip: Under the Equality Act 2010, you must not discriminate based on age, gender, race, religion, disability, sexual orientation, or marital status.

Avoid saying things like “young and energetic,” as it could be considered ageist. Instead, describe the actual skills and experience needed for the job.

Step 3: Advertise the Job

There are plenty of free and paid platforms where you can post job listings. Here are a few popular options:

  • Find a Job service: The UK government’s job board is free and reaches a wide audience.
  • Recruitment agencies: Agencies do the searching for you—but charge a fee.
  • Online job boards: Like Indeed, Monster, Reed, or LinkedIn.
  • Social media: Especially useful for roles in creative or tech industries.

Pro Tip: Word of mouth can also be powerful if you’re in a local or niche industry.

Step 4: Interview Candidates

Once you start getting applications, it’s time to choose who to interview.

Make a shortlist of candidates who meet your essential skills and experience. Try to be objective—write down why you’re choosing (or rejecting) someone in case you ever need to explain your reasoning.

During interviews:

  • Prepare a mix of questions to assess skills and attitude.
  • Be consistent—ask all candidates the same main questions.
  • Take notes—you’ll thank yourself later!

Remember, applicants have the right not to be discriminated against. Avoid personal questions unless directly relevant to the job.

Step 5: Check if the Candidate Can Legally Work in the UK

This is a legal requirement. Before hiring, you must check that the person has the right to work in the UK.

Here’s how:

  • Ask to see original documents, such as a UK passport or visa.
  • Check the documents are genuine and belong to the person.
  • Photocopy or scan them and keep a dated record.

Use the Home Office’s online right to work check for some applicants, including those on settled status or Skilled Worker visas.

Step 6: Conduct Background Checks If Necessary

Depending on the role, you might need to carry out extra checks.

Examples include:

  • DBS (Disclosure and Barring Service) checks: For roles involving children or vulnerable adults.
  • Credit checks: Common in financial roles.
  • Reference checks: Calling past employers to confirm job history.

Always get permission from the candidate first and be transparent about what you’re verifying.

Step 7: Make the Job Offer

Found your perfect hire? Time to make it official!

It’s a good idea to start with a verbal offer and follow up with a written job offer letter. This should include:

  • Start date
  • Job title
  • Working hours
  • Salary
  • Any conditions (e.g., passing a background check)

You’re not legally required to provide a written job offer—but it’s best practice and avoids confusion later.

Step 8: Send a Written Statement of Employment

In the UK, all employees must receive a ‘written statement of employment particulars’ on or before their first day of work.

This isn’t the full contract, but it’s a summary of the key conditions of the job.

It must include:

  • Employer and employee names
  • Job title and description
  • Start date
  • Hours and pay
  • Workplace location

If the job lasts more than a month, this is a legal requirement.

Step 9: Register as an Employer with HMRC

If you’re hiring someone for the first time, you’ll need to register as an employer with HMRC. This lets you set up payroll and handle tax and National Insurance.

You’ll need to do this before the first payday!

Step 10: Set Up Payroll and Pensions

Now that you’re an official employer, you’ll need to:

  • Run payroll each month or week
  • Deduct the correct tax and National Insurance
  • Report payments to HMRC

Most employees are also entitled to be enrolled in a workplace pension scheme. This is called ‘automatic enrolment’ and applies if your worker:

  • Is aged between 22 and State Pension age
  • Earns over £10,000 a year

You’ll contribute to their pension in addition to their wages.

Final Thoughts

Hiring someone for your business may feel overwhelming at first—but once you break it down into manageable steps, it’s much more straightforward.

A well-thought-out recruitment and hiring process helps you:

  • Find the right fit for your team
  • Stay compliant with UK employment laws
  • Build a positive work culture from the start

It’s a bit like planting a garden. Choose the right seeds, give them care and the right conditions, and soon you’ll see growth—not just in your team, but in your entire business.

And remember, you don’t have to do it alone. There are plenty of resources to help as you go.

Need More Help?

If you’d like to dig deeper or see the government’s official guidance, check out the full information here:

https://www.gov.uk/browse/employing-people/recruiting-hiring

Good luck with your hiring journey—and cheers to building a great team!

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