In today's increasingly competitive business environment, the workload of small business owners and managers is intense. It's vital to remember that business is all about people.

Your responsibilities as manager

As the manager, you have to be on top of your legal, regulatory, financial and marketing obligations and capabilities. You need to ensure your staff have the right skills for your business. It's also important that you get specialist advice when you need it.

Your staff

Getting your staff mix right is integral to your business success. Ensure you hire the right person for the job. Before hiring someone, you need to know about:

• their knowledge, skills and experience
• the scope of the job
• the line of responsibility.

Employee versus contractor

Sometimes the work you need done is only for a brief period of time. It may be beneficial to take on a contractor rather than an employee to do the job.

So what's the difference between an employee and a contractor?

An employee:

• is paid for the amount of time worked
• receives paid leave, for example sick, recreation and long service leave
• is not required to provide materials or equipment to do their job
• performs duties of his/her position to meet your specific instructions
• agrees to provide his/her personal services
• works hours set by an agreement or award
• is part of the business
• takes no commercial risks and cannot make a profit or loss from the work performed.

A contractor:

• is paid for results achieved
• provides all, or most, of the materials and equipment needed to complete the work
• is free to delegate work to other people, businesses and/or contractors
• has freedom in the way the work is done
• provides services to the general public and other businesses
• is free to accept or refuse work
• is in a position to make a profit or suffer a loss.