When to Hire Employees in Your Small Business

You’ve worked real hard to improve your business, run it efficiently and have finally reached your capacity. Growing your business requires more than your efforts and making a decision to hire employees is often the right route to go. Before you put an ad on Craigslist, you need to articulate the job role, crunch the numbers and have a plan in place.hire employees

Articulate the Job Role Before You Hire Employees

Assess your current situation before you make a decision to hire. What areas of your business can you hand off to another person?

Generally, the first role that business owners fill is administrative. It’s good practice to have someone that can act as a hub for requests, office tasks and communications. This role is more than answering the phones and scheduling. Someone in this position could be given the responsibility to do light accounting, simple marketing pieces, advertisements, payroll and coordination. Administrators and personal assistants are usually multi-talented and can free you up to work on your business.

Whether you employ an administrator or not, it’s critical that you have clear job descriptions to get the most out of your staff. Set the expectation that the role will grow over time. Communicate that you expect your employees to take ownership of issues and resolve them, even if it’s not specifically in their job description. When you see positive ownership spirit, reward it accordingly.

Crunching the Numbers

After you’ve identified the role, you’ll need to determine what the market will bear for the tasks and where you’ll find the money in your budget. You can find general salary estimates from sites like Salary.com and Bureau of Labor. Remember that you’ll need to consider the minimum wage, payroll tax, required benefits and worker’s compensation in your analysis.

After you have an idea of salary requirements, you’ll need to estimate return on investment. With all of the time you gain back, how many more clients will you bring into your business? How many more units can you sell? Try to estimate how much extra business would be generated by getting the help you need. Then, write down your goal and make sure to revisit it later down the line.

Employee Types

You don’t have to hire a full-time employee immediately. Especially, if you’re having a hard time finding the budget allocation. Consider hiring someone part-time and then migrating to full-time as you see the return on investment. Outsourcing, freelancing and temporary hires are great alternatives as well.

In either case, you’ll need to invest time in the hiring process and then train the employee to proficiency. You’ll also have additional paperwork and records to keep track of, so be sure you’re prepared.

Ultimately, you may need to ask yourself if there are other ways to gain efficiencies, like using software to automate certain tasks or simply getting more organized. If you choose to hire employees, make sure you hire the right person with the right skills, experience, and education for the right job.

Are you making plans to hire? I can help you plan and make the most out of your time and money if you contact me today.

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