Hiring staff in NZ: 12 step checklist for employers

The first step in any recruitment process should always be to recognise that you need an extra set of hands. Next, write down exactly what you’ll need your new hire to do, think about the skills they’ll require and consider what you’re able to pay. This will form the early basis of a job description. 

Before hiring staff you need to fully understand your responsibilities as an employer and the rights of employees in NZ. It’s a good idea to:

• Help your employee meet their tax obligations by completing a tax code declaration (IR330) with Inland Revenue (IRD). 

• Check your employee’s eligibility for Kiwisaver and enrol them if they’d like. 

• Keep records of all wages paid. 

• Set up a record of holiday and leave entitlements. 

• Talk to an accountant to make sure you get everything right. 

It’s also vital that you understand your employee’s rights, including minimum wage, sick and bereavement leave, public holidays, annual leave, and discrimination laws. 

Read more about minimum wage. 

Hiring someone costs much more than simply paying their wage. You might also have to cover their ACC levy, Kiwisaver, vehicle costs, set up and training costs and other discretionary expenses like vehicles and equipment. For an office worker earning $80,000, Business.govt estimates this will cost an additional $9,500, whereas extra costs for someone earning the same amount in the agricultural sector could be as much as $25,000 in the first year. 

Use the government’s employee cost estimator to work out how much you may have to spend. 

You need to be registered with the IRD to become an employer. Luckily it’s easy – just log in to my IR and follow these three steps:

• Go to ‘I want to’ 

• Select register for new tax accounts

• Fill in and submit the registration form

Once you’re done, the IRD will send you a letter providing information about keeping wage records, making PAYE deductions from employee income and paying the deductions. 

Managing the recruitment process in-house takes time, and time is money. The alternative is to use a recruiter, a service that costs money but can save you hours or days of work (and may lead to a better hiring result). If you decide to go with a recruiter they’ll handle every step from here.

Before you start searching for employees you should create a detailed job description. This should include a description of your company, an overview of the job, reporting lines, training providing and an indication of salary and benefits. Keep in mind that you want your job description needs to sell the role and your company to attract quality talent. 

Employers are legally required to provide an employment agreement when hiring, to ensure there’s no confusion around employee responsibilities and pay. At minimum it should include both party’s names, a job description, hours of work, salary details, location of work, dispute resolution processes, and anything else that’s been agreed upon. This should be provided to your employee before they start their new role. 

Read more about employment agreements. 

Seven steps in and you're finally ready to start looking for employees. The best place to start is Trade Me Jobs, where you can reach thousands of potential employees with a few clicks of a button. Listing your role is easy, just follow this simple four-step guide and you’re away. 

After you’ve had enough applications, you’ll need to create a shortlist of six to ten candidates. To narrow the field down, look at relevant experience, key competencies, quality of communication and cultural fit – and keep an eye out for any red flags (like the reasons they left their last jobs, or their tone of voice). 

Once you’ve got your shortlist ready, it’s time to prepare for interviews, which usually consist of one round of phone interviews and one or two in person sessions. Read our guide to get ready.

Time to make a choice! Always keep prospects in the loop so that they know when you’ll make a decision and keep in mind that the best candidates may be fielding other offers. Look for someone with the right attitude, who can provide specific examples of when they used their skills to solve problems. Get to know them a little, be thorough when checking their references and think about whether they’ll fit the company culture.