Starting a business or franchise might seem like no easy picnic. But when it’s done well, you can reap countless benefits.
Before you buy a franchise or ‘start’ your start-up idea, gain access to HR advice beforehand. There are so many HR business factors you need to follow.
From following employment laws to hiring staff-members, the obligations can seem endless. However, if the foundation is well set, you’ll benefit from watching business growth and prosperity.
Read all about franchises, different types to choose from, and HR factors to consider when starting a franchise.
What is a franchise?
One business (or franchisee) will pay another entity (the franchisor) to use their business model and brands.
The franchisor can offer all kinds of different business methods and practices. These can range from staff training to marketing developments.
It’s important to remember, you may manage a franchise–but you might not have complete control. Most likely, the franchisor will have an established business plan. They may require you to follow their plan–by managing an offshoot to help grow the whole business.
Examples of different types of franchises
People think of different things when they hear the words, “I work for a franchise,” or “I own a couple of franchises.”
That’s because franchises are used in various business sectors. The franchise industry has contributed £15 billion to the UK economy–which is an increase of 46% recorded in the last 10 years.
But the numbers exceed on a global scale. The difficulty lies in what type of franchise you should choose. Here are examples of different types of franchises to choose from:
- Retail and hospitality.
- Health and fitness.
- Speciality retailers.
With ideas and sectors in abundance, each of them do share common grounds. Every franchise will have its own structural blueprint. But ethos and value are needed to grow a successful business.
What HR factors should you consider when starting a franchise
Now that you’ve taken an overall look at franchises, you need to nail down the HR factors.
Compliance will help keep your business on a legal and moral track. By setting the foundations, you can spend time and energy on more pleasant business needs.
Here are some steps to take when starting your own franchise:
Follow a robust hiring procedure
Business success is only achieved through the hard work of a team.
It’s important to ensure you have a robust hiring process–helping you find top candidates. From job adverts to candidate selection, your entire procedure should be fair and lawful.
When you start hiring, be careful not to treat anyone indifferently or unfavourably. Or else, you risk facing claims of discrimination–resulting in costly penalties and business damages.
Keep clear and transparent policies
Policies provide vital information on rules, regulations, and conduct during work.
They help new and present employees works safely and within a legal manner. Your rules should be outlined within your policies, through clearly defined guidelines.
Having transparent rules protects you from any unexpected claims; and protects employees from misconduct. (For example, workplace bullying, harassment, and discrimination).
Set up a dependable payroll system
Having a dependable payroll system can offer piece of mind when it comes to paying wages.
Through automated systems, employees are guaranteed to receive the right amount, at the right time. It’s also useful with managing additional payments, like overtime, bonuses, and statutory entitlements.
Payroll systems can help estimate a practical number for workers needed for your business. Having this balance between staff-numbers and production will help ensure a healthier workplace.
Minimise signs of presenteeism
When you start a new business venture, one of the most common behaviours found is presenteeism or over-working. People may work after hours or round-the-clock, out of excitement, anticipation, or even worry.
Remember, there are legal limitations on how many hours employees can work for. Under UK law, employees cannot work beyond 48 hours a week. They are also legally entitled to a minimum rest period of 11 consecutive hours for each 24 period.
These can change if mutual agreement has been reached privately. But remember, the best way to grow a healthy workforce is through having a good work-life balance.
Provide staff with legal entitlements
Whether you plan to hire full-time employees or seasonal workers, it’s vital to provide staff entitlements. These can range from holiday leave to sick pay.
Failing to provide legal entitlements leads fines and court hearings–which damages production and reputation.
Present contracts with terms and conditions
This may be obvious, but it’s important for employment contracts to cover necessary T&Cs.
All job specifications and lawful requirements must be included in a statement of written terms and conditions. These will outline what is legally required from the employee, and what they’re entitled to, as well.
It’s true not all contracts need to be written down for them to be legal. However, it’s good business practice to have terms documented. That way, both parties can acknowledge expectations, without deviation from the agreement.
First steps are the scariest but the most rewarding
You won’t be the first person to suffer from trials and tribulations in the business realm–and you certainly won’t be the last.
The first steps for starting a new franchise may seem daunting. But once the roots are set, you’ll be able to watch your business blossom.
And remember, whether you’re running solo or with a team, allow a good balance between work-life and home-life. You might be eager to fly, but it may take time to build your wings–so pace yourself.
Once you’ve decided on what business venture to take, the rest will follow, by means of dedication and perseverance. The only thing that remains is to feed and water your franchise; and reap the rewards of your hard work.
This post was written by Peninsula