When Is The Right Time to Hire Employees?
When you start to see signs of success with your business, one of the temptations is to hire employees. It’s completely understandable. After all, recruiting your first staff members is a sign you are beginning to turn into a proper company. This also points to the fact that you will be able to serve more customers, get more done, and make more profit.
However, hiring employees is an expensive part of running a business. Once you have paid salaries, benefits, retirement payments, it soon adds up to a considerable sum. When you have full-time people on the books, you have to pay them, regardless of whether the business is making money or not. In short, it’s risky.
So the big question is – when is the right time to start taking on employees? Here are a few signs to watch out for, which will hopefully give you a clear idea of what to expect. Read on to find out more.
When you are losing your mind
As any entrepreneur will tell you, when your business starts to thrive and you are working alone, it can be a mixed blessing. On the one hand things are going well, but on the other hand, the pressure is on to deliver. It can be incredibly stressful. If you feel like you are losing your sanity, it’s time to get some help. Have a good think about the tasks that are consuming your most valuable time, and hire someone to help.
When you are being pulled in too many directions
As we mentioned above, your time is valuable as a business owner. If your high-earning tasks are worth $50 an hour to your business, eventually there will come a point where it makes sound financial sense to pay someone $15 an hour to do your admin rather than do it yourself.
You have systems in place
There is a lot to do before you hire a single employee and it’s essential to have all your bases covered. HR and employment issues, technology systems, equipment and computer services, office space, job descriptions and a watertight hiring process – these are all things you’ll need to have in place before taking people on. You can get away without addressing a lot of these responsibilities when you are outsourcing, but once people are on the books, they need to be addressed.
When you find the right person
Finally, when you are desperate for the right help, it can be tempting to give the job to the first person that expresses an interest. But it’s a big mistake. Chances are that applicant number one is not the best person for the role. The candidate market needs to be adequately explored before making a decision. You also need to take time to look for the right kind of employee – not just in terms of their skills and experience. Some people work better in large organizations. The reality about working for small businesses is there are no hiding places.
Good luck with the hiring process. I’d love to hear how it works out for you.