Hiring Employees in the UK: A Simple Step-by-Step Guide for Employers

Hiring your first employee, or even your tenth, can feel overwhelming—especially if you’re new to the UK employment process. Where do you begin? What legal steps do you need to follow? How do you stay compliant and still find the right person for the role?

Don’t worry! This guide will walk you through every step of recruiting and hiring staff in the UK using plain, simple language. Whether you’re a small business owner, a startup founder, or a manager in a growing firm, this is for you.

Let’s break it all down.

Why Hiring Right Matters

Finding the right person can make or break a business. Think of your employees as the engines of a car. Choose the right engines, and your vehicle (aka your business!) moves smoothly. But pick the wrong ones, and, well… you’re stuck on the side of the road.

Hiring efficiently and legally doesn’t just save time and money—it protects your business, improves productivity, and boosts team morale.

So, let’s explore the main steps of hiring someone in the UK.

Step 1: Understand the Legal Requirements

Before you even post a job ad, you must make sure you’re legally allowed to hire someone. In the UK, there are a few things every employer must have in place.

Register as an Employer with HMRC

First things first, you’ll need to tell the government you’re hiring. You do this by registering with HM Revenue and Customs (HMRC). This ensures you’re set up to manage tax, National Insurance, and the employee’s payroll.

You need to do this before the first payday, even if it’s just one employee.

Check for the Right to Work in the UK

It’s your responsibility as the employer to confirm that anyone you hire can legally work in the UK. This applies to all employees—whether they’re from the UK or abroad.

● Ask for original documents, such as a passport or visa.
● Keep a copy of these documents for your records.
● It’s best to carry out these checks before offering a contract.

Tip: Use the government’s online tools to make your life easier.

Step 2: Define the Role Clearly

This might seem obvious, but having a clear picture of who you’re looking to hire is essential.

Write a Clear Job Description

Start by asking yourself:

• What tasks will this person be responsible for?
• What skills or qualifications do they need?
• Who will they report to?

Include details like job title, duties, hours, salary, and location.

This job description will form the foundation of your job posting—and it helps weed out candidates who aren’t suited for the role.

Step 3: Advertise the Role

Once you know what you’re looking for, it’s time to shout it from the rooftops (or at least post it online).

Where Can You Advertise?

Here are a few popular places:

• Job boards like Indeed, CV-Library, Reed, or Totaljobs
• Recruitment agencies if you want professional help
• Social media platforms like LinkedIn or even Facebook
• Your company website

When you write your advert, keep it friendly and informative. Use your job description but keep it engaging. Think about what would make someone want to join your company.

Bonus Tip: Make sure your job advert does not discriminate. Keep it inclusive to all genders, ages, ethnicities, and backgrounds.

Step 4: Conduct Interviews (and Make Sure They’re Fair)

Once the applications start rolling in, it’s time to short-list candidates and schedule interviews.

Want the Best Person for the Role?

Make sure your process is:

• Structured: Ask all candidates similar questions
• Consistent: Take notes to fairly compare responses
• Unbiased: Avoid judging based on appearance, name, or background

You can interview in person, over the phone, or via video—whatever works best for you and the candidate.

Always let candidates know what to expect and how long the interview will last.

Remember: The interview is a two-way street. You’re evaluating them, but they’re also evaluating you. So be professional, clear, and kind.

Step 5: Select the Right Candidate and Make an Offer

Found the right person? Great! Now it’s time to make it official.

Offer the Job

Usually, this is done verbally first, and then put in writing. Your offer should include:

• Job title
• Start date
• Salary
• Working hours
• Any other key terms, like benefits or probation period

Once the candidate accepts, you’re ready to draw up a contract.

Step 6: Create a Written Employment Contract

In the UK, every employee is entitled to a written statement of employment within two months of starting. But ideally, you should provide a full employment contract before they begin work.

This contract must include:

• Names of both employer and employee
• Job title and description
• Start date
• Salary and pay schedule
• Working hours
• Holiday entitlement
• Notice period
• Grievance and disciplinary procedures

Consider having your contract reviewed by a solicitor to ensure it’s legally sound.

Step 7: Pay the Right Wage

In the UK, you must pay at least the National Minimum Wage or National Living Wage, depending on your worker’s age and role.

Not sure what the current rates are? You can check them on the GOV.UK website. This is a legal requirement, and not following the rules can get you into serious trouble.

Step 8: Set Up Payroll

Time to talk money. Once you’ve hired someone, you need to set up a way to pay them.

That means:

• Registering for PAYE (Pay As You Earn) with HMRC
• Deducting tax and National Insurance from their wages
• Providing payslips
• Reporting employment information to HMRC

You can do this yourself using payroll software, or you can hire an accountant or payroll service provider to help.

Step 9: Keep Records

Just like with your finances, keeping employee records is essential.

Make sure you keep:

• Pay records
• Employment contracts
• Right to work checks
• Sickness and holiday records

Good record-keeping not only keeps you compliant but can also help defend your business in case of disputes.

Step 10: Welcome Them Onboard

Last but not least—onboarding! It’s more than just showing someone their desk.

A proper induction helps your new hire feel part of the team and sets them up for success. You might include:

• Introduction to coworkers
• Tour of the workplace
• Health & safety info
• Training for their role

Think of onboarding like showing a friend around your home. You wouldn’t just hand them the Wi-Fi password—you’d probably also explain where the coffee is and how to use the microwave. It’s the same here.

Final Thoughts: Stay Compliant and Keep Learning

Hiring employees in the UK doesn’t have to be scary. By breaking it down into manageable steps, you can make sure you hire the right person and stay on the right side of the law.

Here’s a recap of the key steps:

1. Register as an employer with HMRC
2. Check right to work documents
3. Write a clear job description
4. Advertise the vacancy fairly
5. Interview and select candidates without bias
6. Make an offer and provide a contract
7. Pay the correct wage
8. Set up payroll properly
9. Keep good records
10. Onboard your new team member

Running a business? Think of recruiting like planting a garden. The more carefully you prepare the soil—aka your hiring process—the better your chances at growing a healthy, thriving team.

Want to dig deeper into the details?

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