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Setting up a business involves complying with a range of legal requirements. Find out which ones apply to you and your new enterprise.

While poor governance can bring serious legal consequences, the law can also protect business owners and managers and help to prevent conflict.

Whether you want to raise finance, join forces with someone else, buy or sell a business, it pays to be aware of the legal implications.

From pay, hours and time off to discipline, grievance and hiring and firing employees, find out about your legal responsibilities as an employer.

Marketing matters. Marketing drives sales for businesses of all sizes by ensuring that customers think of their brand when they want to buy.

Commercial disputes can prove time-consuming, stressful and expensive, but having robust legal agreements can help to prevent them from occurring.

Whether your business owns or rents premises, your legal liabilities can be substantial. Commercial property law is complex, but you can avoid common pitfalls.

With information and sound advice, living up to your legal responsibilities to safeguard your employees, customers and visitors need not be difficult or costly.

As information technology continues to evolve, legislation must also change. It affects everything from data protection and online selling to internet policies for employees.

Intellectual property (IP) isn't solely relevant to larger businesses or those involved in developing innovative new products: all products have IP.

Knowing how and when you plan to sell or relinquish control of your business can help you to make better decisions and achieve the best possible outcome.

From bereavement, wills, inheritance, separation and divorce to selling a house, personal injury and traffic offences, learn more about your personal legal rights.

Graduate recruitment

Recruiting a graduate can give your business an injection of talent, enthusiasm and fresh ideas. You need to be clear about exactly what you are looking for and how best to attract suitable candidates.

Hiring a graduate - considerations

What sort of graduate?

Coming up with an offer

Targeting universities

Meeting graduate candidates

Graduate recruitment agencies

Advertising for graduates

Typical difficulties

Retaining a graduate

1. Hiring a graduate - considerations

Recent graduates have much to offer and might provide a fresh approach to business processes and ideas.

They are bright and keen to do well

  • They are likely to be ambitious and willing to work hard in order to prove themselves.
  • The fact that you have offered them their first job will buy a certain amount of loyalty.

Graduates are less likely to have bad working habits

  • However, they may need to be initiated into the disciplines of the workplace.
  • They have no pre-conceived ideas about what can and cannot be done.
  • You will be able to train them your way.
  • Many companies recruit graduates that have already worked for them through work experience, internships or holiday jobs.

Graduates should not be thought of as a source of cheap labour

  • They are likely to be high maintenance in many ways.
  • They will want a competitive salary.
  • They may expect to be given an unrealistic degree of responsibility early on.
  • They could be looking for fully mapped out training and career development programmes.

Offering work experience or internships

Many university and college courses require undergraduates, particularly those on vocational courses, to complete work experience, usually for the whole of their penultimate year of study. Many students pick up a 'taste' for specific jobs or sectors whilst at university.

There are significant advantages to offering placements

  • Undergraduates can bring some welcome enthusiasm into your team.
  • They want wide experience, and are often willing to move around different departments and try different tasks.
  • The cost to the business is relatively low.
  • It is not uncommon for the placement to be so successful that you end up recruiting the undergraduate permanently.

There are also substantial advantages for the undergraduates

  • It provides some much-needed income.
  • It greatly increases their chances of obtaining a job on graduation.

Contact your local university careers service for students

  • Use your usual recruitment process to find the most suitable candidate.
  • Undergraduates who have benefited from the experience will usually be happy to introduce you to other potential candidates when the placement comes to an end.

2. What sort of graduate?

Consider what qualifications, skills and experience you want your new hire to possess.

Decide whether you want a generalist or a specialist

  • Unless you need a vocational qualification, consider recruiting graduates from a range of subject areas. Any degree is training in how to think.
  • Most university courses include continuous assessment, so most students will have a good idea of their eventual grades by the time they start applying for jobs.

Decide whether you want specific skills

  • For example, languages or programming skills.
  • If such skills are important, include them in the 'person specification' at the start of the recruiting process.

Think about whether commercial awareness is important

  • Some graduates take work placement experience and internships as part of their degree.
  • Others will have worked in industry, services or commerce, on a part-time basis or during holidays, to help finance their education.
  • Some students take a gap year and complete voluntary work.
  • Include any requirements for experience in the person specification.

3. Coming up with an offer

The graduate job market is the strongest it has been for many years. Although growing numbers of graduates are choosing to join small businesses, you will have to compete with other smaller firms, as well as large graduate recruiters, to attract good candidates.

Aim to show the benefits of working for you, to make the job appealing.

Be clear about what you have to offer

  • Work out both a 'job specification' and a 'person specification' before you start.
  • Decide who the graduate will be working for, and what they will be doing.
  • Think about the sort of training and career opportunities you will be able to provide. You do not have to have a formal 'graduate programme' but it should be clear that the role is not a dead end and that there is scope for advancement.
  • Offer a competitive salary. Benchmark your graduate salaries against similar roles in other companies, bearing in minds your sector and location.
  • Do not oversell the job. Be realistic about what you can offer.
  • Discrimination on the basis of age is illegal.

Remember your main selling points

  • As a small business, these are related to the excitement of working in a small team and having an influence on the success of the business.
  • You can offer the graduate the prospect of becoming a key team worker with the chance of real responsibility in several different roles early on. This is less likely within a large company.
  • There may be the chance to get involved in innovative new projects.
  • Working directly with the directors is also a potentially exciting prospect.
  • Future career prospects, training opportunities, the location, the commute and its associated costs will all affect how desirable the position on offer is.
  • Describe your offer in terms of a flying start to a career that steadily progresses. If you can, give information about the organisation of your business, or a business plan.

4. Targeting universities

There are numerous universities and higher education institutions in the UK. Focus your efforts, to avoid wasting time and money.

Target the university or institution of your choice

  • If you need candidates who have studied particular subjects, you can research degree courses to identify relevant institutions through UCAS.
  • Do not base your choice on unresearched beliefs, such as your own experience. They may be out of date.
  • Make yourself known to the careers service at your chosen universities or institutions. Get your name entered onto their databases, so that your details are circulated to potential recruits.

Do not ignore your local universities

  • Get to know the careers advisers and tutors if you can.
  • You may find students who have settled in the area and would like to stay there.

5. Meeting graduate candidates

Careers fairs, the 'milk round' and employer presentations are good ways to make contact with prospective graduate employees. But these can be time-consuming and costly.

Careers fairs offer you the chance to meet future graduates in an informal setting

  • The cost of exhibition space varies, from nothing to several hundred pounds.
  • Make sure you have enough people to answer enquiries, and plenty of information about your company.
  • Get your timing right. Most graduate careers fairs take place between November and March and again in the summer term. You should book your place early.
  • There are different types of fair. Many universities offer SME days (for small and medium-sized enterprises). You will be able to meet students without having to compete with the large graduate recruiters.

The milk round offers the opportunity to interview candidates on campus

  • Interview as many students as you can who meet your job requirements.
  • Aim to come away with a shortlist of candidates to invite for further interviews and possibly some 'taster' work experience or internships before you make a final decision.

Most universities also organise employer presentations

  • Do not rely on your company name to attract students. Be specific about what you can offer graduates.

6. Graduate recruitment agencies

There are a number of specialist graduate recruitment companiesoffering different services. Some provide a CV bureau, others offer fully interviewed graduates and others include training for graduates as part of the package.

Charges range from 15 to 25% of the first year's salary

  • The cost depends on the agency you use and the level of service required.
  • Extra services may include identifying relevant universities and courses, advertising and initial screening and selection.

Find an agency by checking which recruitment firms advertise for graduates

  • Look in newspapers and online
  • Ask the Institute of Student Employers (ISE).
  • If you shortlisted target universities or institutions, ask their careers services which agencies specialise in recruiting from the various disciplines there.
  • Ask business friends which agencies they have used.

7. Advertising for graduates

Another way to find a graduate is to advertise.

Advertising on site at the universities is usually very cheap

  • University careers services offer a range of services, including notice boards and career vacancy bulletins.

Prospects is the main graduate recruitment website

  • The website receives more than two million visits a month. You can advertise from a little as £375.
  • Your advert will be emailed to relevant graduate job seekers and promoted via social media.
  • They can also tailor a bespoke recruitment campaign for you.
  • Other sites include Milkround, TARGETjobs and GraduateJobs.

National newspapers carry regular 'graduate appointment' features

  • Your industry trade magazine may carry graduate recruitment advertisements.

8. Typical difficulties

While the recruitment process will be similar to that for other employees, there can be some specific problems associated with graduate recruitment.

You may leave it too late to attract quality candidates from this year's graduates

  • Start planning your recruitment campaign early in the academic year.
  • By the time exam results are announced, many of the best graduates will already have accepted job offers.

You may invest time interviewing candidates who then take jobs elsewhere

  • Be realistic about the calibre of graduate you can expect to attract with your offer.

You may be flooded with applications, especially if you use online job boards

  • Devise a filtering process to get numbers down to a manageable level.
  • Be specific about the skills and qualifications required for the job.

9. Retaining a graduate

Once you have a graduate on board, it is important to keep them motivated and satisfied, to ensure that the effort invested in the recruitment process does not go to waste.

Offer a mentor and organise an appropriate training programme

  • An experienced colleague acting as a mentor provides guidance to the new recruit.

Give feedback

  • Remember that graduates have come from an intense learning environment, where everything has been measured and evaluated.
  • Give regular performance appraisals and provide praise for good work.

Increase the graduate's salary relatively soon

  • You might increase pay after six months, subject to achieving agreed targets.

Give responsibility as early as you can

  • Make sure this responsibility is delegated deliberately, not simply by default.
  • Ask the graduate to set up new projects, but be sure to monitor their progress.
  • However confident and well qualified they are, graduates still need support and feedback.

Ensure you keep the promises you make

  • Give careful consideration to the rest of your employees. Minimise any potential resentment by explaining the graduate's role to the rest of your team.
  • Resist giving the graduate an inflated job title or obvious preferential treatment.

Signpost

Expert quote

"The recruitment process can be the same as for other employees, but you need to look for potential rather than a track record." - Paula Grayson, Chartered Institute of Personnel and Development Recruitment Forum

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