When it’s time to hire a new employee, you need to consider a few things before you take the plunge. When you add staff to a newer company, there are some items to consider that more established companies do not worry about.
You need to be able to ask yourself what type of business you want, if you really need the help and if you’re set up to handle more employees structurally and financially. You don’t have to limit yourself to full time employees, but you do need to consider the costs of not hiring at all and what the long-term picture looks like. Here is a look at these items and more when deciding if it’s time to hire a new employee.
What Type of Business Do You Want?
When you’re trying to decide if it’s time to hire new employees, you need to consider the pros and cons. It’s going to take from your income that could be going back into the business. Not hiring could hinder growth and potential relationships with customers due to a lack of staffing. Ask yourself what kind of business you want, because not everyone is interested in having a large business.
Some people want to focus on a small company where they can be very involved in all aspects of daily management and reap every type of reward. Growing a business means you’ll have to delegate more and become disengaged with parts you may enjoy, but it could also mean more cash flow, allowing you to grow your business into a huge, well-known name.
Growth can Hurt
Sometimes growing quickly may negatively impact your company. When you desire a larger business but don’t really need to grow, you may find yourself with more customer complaints about poor service or decreased employee satisfaction as they can’t keep up with the demand.
Make sure your decision makes your business more efficient. If you can’t handle problems now, it makes sense to bring on more help. Keep in mind that you can look for outside help by outsourcing to other companies rather than hiring more staff. There are dozens of tasks you can outsource, including receptionist tasks, call handling, or accounting.
Can you Handle more Staff?
In addition to having the cash flow to support new staff members, you must consider if there is room for new staff in your office. Do you have the resources for training and management? Make sure you have enough space, time, resources and equipment to handle more employees.
What Would it Cost to not Hire?
If you’re leaning towards not bringing on more staff members, consider what it’s going to cost you. Having a short staff is sort of like driving a car with the minimum amount of gas. It’s dangerous in that you could run out of gas at any moment, and it makes you feel more stressed than you would knowing you have at least a half of a tank or more.
You can’t always manage in normal traffic without enough gas. This means that your staff could experience burnout, lower productivity due to stress or being overwhelmed, and customer satisfaction could decrease. When you’ve decided to save your money, consider how this is going to affect your company compared to the competition. It might be better to take the risk.
Consider the long-term effects of hiring now compared to saving the money. It may cost you more money to hire now but your company’s growth and reputation may suffer if you save the cash.