Your business has been doing well, meeting milestones, and maybe you’re thinking it’s time to hire an employee to help you manage things.
There are some tell-tale signs that you’ve grown beyond your current structure and need to look for additional help, but first, let’s talk about the different types of employment to see what kind of employee would benefit your business the most right now.
Types of employment
Full time employees work a standard 8 hours each day, and any amount of time worked over 40 hours each week is paid in overtime. They might receive hourly wages or a salary, and the decision is up to you.
Part time workers work less than 35 hours each week and may have more than one employer (read: They may not be fully dedicated to your business). Part time workers generally don’t receive benefits.
Independent contractors are not technically employed by you–they are self-employed, which means they are responsible for paying all applicable taxes. They don’t have to work a set amount of hours by law, but that information should be included in the work contract you both agree on so there are no misunderstandings. You’ll need to file a 1099 tax form to report the amount you’ve paid to an independent contractor.
We can see that full time employees may be best suited for large, specialized, ongoing tasks that need strategy and daily oversight. Part time employees might be best for short term projects or specialized tasks that are led by you or another team member.
Independent contractors are great for specialized tasks and ongoing work, like clerical, social media, and web development. If you’re unsure about hiring a full time employee and want to “try before you buy,” you might ask the person to come on as an independent contractor first.
Now that the types of employment are fresh in your mind, let’s discuss the signs that indicate you’re ready to hire an employee or contractor.
4 Signs That Indicate You Need to Hire an Employee
You’ve turned down work recently.
If you’ve been turning down work because you don’t have time to handle it, there’s no better indicator that you’re ready to hire someone new. Look for someone with a skill set that mirrors yours to ensure they can handle the type of work you’re doing. With the right employee, you won’t have to turn any more work down (for a while–until it’s time to hire again)!
If you’ve been turning down work for reasons other than time, hiring may not be in your best interest right now. It’s best explore the issues that are causing you to reject potential work before you bring another team member in.
You found a new revenue stream.
Maybe you’ve been able to handle the current workload just fine, but have recently discovered a potential new revenue stream–and all you need to bring it to life is a qualified, dedicated employee. It might be tempting to jump in and handle it yourself, but spreading yourself too thin will cause your business to suffer. Look for someone who is already experienced in the type of revenue stream you’re expecting.
You can afford it.
This might go without saying, but if your budget has a lot of wiggle room (or just enough), it’s a sign that you’re doing something right–and you’re probably ready to hire another employee. What areas have you been lacking or struggling in? Now is the time to bridge those gaps and patch some holes by bringing in a new team member with experience.
Your support team needs support.
If your business isn’t offering top notch customer support, you’re not making a good impression on your customers. That means you’re close to losing–if you’re not already losing–customers. Don’t let this happen to your business!
Your support team can be bulked up without hiring full time or even part time. As technology advances, virtual support of all types is becoming commonplace: web hosting support, live chat support, virtual receptionists, virtual assistants, and more. It’s an affordable option for employers who may not have the budget for a full time employee, but don’t want to skimp on offering customer support.
Want more tips as you hire an employee? Check out this related article on Getting Over Your Fear of Delegating