For the past months, you have valiantly burned the midnight oil to complete all the projects on your plate. You are trying to operate as lean as you possibly can, juggling and wearing every hat yourself. At a certain stage, you’ll inevitably hit the point where, in order to sustain growth and stay competitive, you need a pair of helping hands on board to help you do more.
As a leader looking to grow your business, it is imperative that you proceed with a degree of caution. For one, committing to employee salary and benefits can cause a considerable dent on your revenues. Firing one due to hiring mismatches could mean having to contend with costly severance pay (and even litigation) along with expending additional time and resources on finding a suitable replacement.
Then of course, there is the issue of turnover, healthcare costs, absenteeism, and employee management – all of which put strain and substantial cost on your company’s bottom line and reputation. This is not to put you off expanding your business. However, it is important to know the risks and responsibilities involved before taking the plunge.
Are You Ready? Know When to Hire
Like all things in business, timing is crucial. Given everything that’s on the line, here is some valuable guidance on knowing if it is indeed the right time to hire:
If You Can’t See the Forest for the Trees
While it is true that entrepreneurship deals with a heavy workload, , it can be difficult to one day realize YOU are holding your company back because can’t get everything done and cover all the bases by yourself. If important tasks take a back seat, you’re too busy to respond to client emails, marketing plans don’t get executed on time – then you may need to focus on the big picture and let someone else handle the menial work.
If PROs Outweigh the CONs
Write down the positives and negatives of taking on a staff to determine if this decision is viable for your long-term business growth.
Questions You Need To Ask Yourself
- Do you have sufficient cash flow NOW and in the FUTURE to pay for regular wages?
- Is it more feasible to take on a permanent staff instead of hiring a contractor or outsourcing work?
- Is there sustainable workload for the foreseeable future?
- Is the ROI greater than the cost of maintaining an employee?
- Do you have the energy and time to train and manage an employee?
Avoid Common Hiring Mistakes of Startup Companies
- Don’t simply hire someone because you know the person. Hire the RIGHT and QUALIFIED candidate for the job.
- DO NOT take on a business partner just because you can’t afford to hire an employee. Hire someone who can ADD to your revenues, not DIVIDE the income.
- Steer clear from hiring just for hiring’s sake. DEFINE the specific job and skill set you require to ensure consistent productivity and satisfactory performance.
Hiring decisions can be daunting for anyone, but it helps to know what hiring practices can prove detrimental to your business growth.