What to Consider When Hiring an Employee

Hiring an employee is an important decision for any business. Taking a structured approach and ensuring compliance will help set your hiring up for long-term success.

Here are some key best practices to consider when bringing a new team member on board:

1. Know Your Why and Your Core Values

Understanding your “why”, the purpose behind what you do, and your core values is an important foundation in the hiring process. Defining these early allows you to structure interviews to find candidates who share them. This alignment can lead to higher job satisfaction, stronger motivation and a more harmonious workplace.

2. Create a Job Description

A clear job description outlines the work the role will involve and the expectations that come with it. Without one, there’s a higher risk of misaligned understanding about the role and its responsibilities.

Resource: Templates – Fair Work Ombudsman – Templates for job descriptions, job advertisements and other relevant employment documents.

3. Compliance

Decide on the employment type, casual, part-time, full-time, or fixed term, before you begin recruitment.

Check the applicable minimum pay rates, penalties, allowances and determine which award applies. You can use the Pay Calculator – Fair Work Ombudsman to find this information.

Have an employment contract drafted and ensure you understand your tax and superannuation obligations. The Create an Employment Contract – Australian Government Business tool can guide you through this process.

Employers must also keep written records of time and wages for all employees and provide a pay slip within one working day of paying wages.

Regularly review employment legislation and compare it against your workplace practices to identify gaps or areas for improvement, helping to reduce risk.

Resources:

• Hiring Employees Checklist – Australian Government Business – Step-by-step list of hiring tasks for employers.

  
  

4. Posting Job Advertisements and Shortlisting

When advertising a role, assess applicants against the job description and key requirements to create a strong shortlist. Following this, a short phone interview can help both you and the candidate gauge their fit for the position before moving to in-person interviews.

 Resources:

• Different Ways to Fill Job Vacancies – Job Jumpstart – Ideas for where and how to advertise your job openings.

  
  

5. Structured Interviews

Preparing interview questions in advance helps ensure the evaluation process is fair, unbiased, and focused. It also gives candidates the opportunity to share information that demonstrates whether they align with your organisation’s values.

Include a variety of questions, some that address technical skills and the ability to perform the role and others that explore character and values. Using an interview guide with a scoring system can help keep evaluations consistent.

Interview questions must also comply with Australian discrimination laws. It is unlawful to ask questions that reveal personal information which could lead to discrimination based on certain attributes, including (but not limited to):

• Age

• Physical or mental disability

• Race

• Religion

• Sex, gender identity, or sexual orientation

• Relationship status, pregnancy, or family responsibilities

Resource: You Can’t Ask That! Illegal Questions in Interviews (2025 Update) – Sprint Law – A guide to questions you must avoid to comply with Australian discrimination laws.

6. Check References & Onboard the Employee

Calling references is an important step in verifying the information provided by the candidate. Reference checks can give valuable insights into a candidate’s work history, strengths and areas for development, helping you make the best hiring decision.

Best practice is to conduct reference checks over the phone and let the candidate know you will be contacting their referees. Ask clear, focused questions to encourage open answers — for example: “Were there any areas for development?”

Once you’ve made your decision, finalise the offer by sending an employment agreement outlining the terms and conditions of employment. Fair Work Australia requires employers to provide every new employee with a copy of the Fair Work Information Statement (FWIS) before, or as soon as possible after they commence in the role. Depending on the employment type, you may also be required to give additional information sheets.

Resources:

• Reference Checks – Seek – Guidance on conducting effective and compliant reference checks.

• Fair Work Information Statement – Fair Work Australia – A mandatory document employers must give to all new employees.

  
  

Guidance for a Successful Hire

Hiring a new employee involves multiple steps and following them carefully can set the process up for success. While there are many tools and resources available online, having qualified support and guidance can help ensure compliance, minimise risk and create a positive experience for both the business and the candidate. This approach gets things off to the right start and helps avoid missteps that could impact the experience and expose the business to risk.

For tailored advice or assistance with your hiring process, contact People & Culture Innovations at info@peopleandcultureinnovations.com.au.