There comes a point in time when every business considers hiring a new employee. For small to mid-sized businesses, bringing on a new hire is no small thing. You want to make sure the timing is just right. Although there is no tried and true formula for whether you should hire a new employee, there are some signs to look for. Here are a few very good indicators on when you should bring someone on board.
When You Have a Game Plan
Not only do you have to know where your business is headed to successfully grow, you also have to have a clear-cut idea of what the new hire will be doing for the company to justify the cost of the salary. You don’t want to just hire somebody to sit by the phones. Having a clear idea of what the new employee will be doing on an hourly, daily, and weekly basis is very important. This will allow you to recruit the right candidates and ensure that they hit the ground running.
When You Can Afford It
This may seem obvious. However, just because you have plenty of work does not necessarily mean that you have the necessary revenue to hire a new person. Taking a look at your financial statements, especially the cash flow statement, will let you know with certainty if and when you have the money to hire someone. If you’re having trouble deciphering the data on the financial statements, a quick consultation with your accountant will help you determine this.
However, you also have to keep in mind that some positions are income-generating, while others will require you to pay for the salary from revenue until you can grow your business. Although some positions may not generate income, they may be able to save you time, which leads to the next point.
When You Don’t Have Time to Grow Your Business
If you are the main engine behind the growth of your business, but you are spending all your time on administrative tasks, then it may be in your best interest to hire someone. Even if the position that you want to fill may not be income-generating, allowing you the time to grow your business will eventually lead to higher profits. Take a look at your daily activities and see what takes up the most time. Is it shipping? Is it data entry? Is it customer service? Acquiring someone to help you in these areas, even if it’s just part-time, will allow you the time to acquire new clients or customers, and enable your business to expand.
When You Don’t Have the Necessary Expertise
You know your business inside out. However, as your business grows, you may realize that bringing on a professional in certain areas may speed up some processes. For example, you will save yourself headaches and time if you hire an experienced designer, or a bookkeeper with knowledge of payroll processes. Once again, your time may be better spent on other aspects of growth for your business rather than learning these skills.
For small to mid-sized businesses, it can be a huge deal deciding on whether you should hire a new person or not. You always have to know where your business is going and if a new employee can help you achieve these goals. If you’re not ready to hire a permanent employee yet, you can always consider hiring a temp first. A temp can be highly qualified in a particular field, such as accounting, and you can see how a long-term employee can work out for you without the risk of hiring a permanent employee right away.
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