Congratulations! Now that your business is growing, you are “toying” with the idea of hiring employees. But before you do…consider whether you truly need to hire employees. You may be surprised that the issue is not hiring employees, but simply just taking the time to organize your business more efficiently. Moreover, you should consider these key issues if you are on the fence about hiring a new employee.
Can you truly afford to hire employees?
It would be a great idea to first begin by looking at your budget. Do you have extra capital that can be reassigned to paying for an employee? Remember, you have to consider what wage you will pay the employee, without ignoring other factors such as payroll taxes and workers compensation.
Secondly, you should try to pinpoint how much additional income you believe that the new employee will bring in. This is especially easy if you are hiring a sales person because you can easily calculate commission wages. Of course the wages will be derived from the total amount of sales that the employee will generate. On the other hand, if you are hiring a clerical employee, it might not be so easy to place a figure on. However, you can make the following considerations while deciding whether to hire.
*Can this employee free more of my time so that I can bring in additional income through marketing or sales efforts?
*Will an additional employee increase the quality and timeliness of services being offered? Will my customers feel that the services offered is of greater value, since the addition of my new employee? Ultimately, could this generate repeat customers or new customers?
*Are you able to produce more products or services?
Will hiring this employee save me time?
We all know the saying “Time is money”. Therefore this old adage also rings true for this situation. You may already be under the assumption that the employee will free up a lot of your time, so that you can focus on more pressing issues. Not so fast… Remember that after you hire this employee, it will be your responsibility to train the worker. Also, you can’t expect the employee to get the “hang of it” overnight. So there will be some time that you must allow the employee to fully function on their own.
Will my business make enough to at least pay a minimum wage?
If you don’t think that you can generate enough cash to at least pay for minimum wage, then consider other avenues. Such avenues can consist of the following:
*Internships or volunteer workers