Taking on an employee, whether they’re your first or twenty-first is a big decision. Not only do you need to make sure the time is right for an employee, you need to ensure that you’re not adding any necessary expense to your business. Hiring an employee should be beneficial by decreasing your workload, making you more money, or reducing your expense. You’ll need to consider the following things carefully before you take on a new member of staff:
How Much This Will Really Cost
When hiring a new employee, you don’t just need to think about the money you pay them each week or month. You’ll spend a lot of money training them up too, as well as money on the equipment they need at work. You might even need more office space. You will also need to pay more in taxes, and there may be other government regulations that you need to consider too. Managing the employee after you’ve trained them also costs money. You will have certain responsibilities once you’ve hired an employee too; they have rights, says Mark Reynolds. You might like to get help with drawing up contracts and other important documents if you aren’t sure how to proceed.
The Extra Money You Will Make
A new employee should always help your business to make more money. They may be selling your product or service, or allow you to expand your capacity to deliver your product. There are many ways in which a new employee can help you to make money. In most cases, they’ll help in more than one way. Make sure you actually sit down to consider the extra revenue you could make by taking on this new employee. If you hire only the best talent, you’ll be sure to make lots of extra money!
Any Expenses You Can Save On
Although a new employee will mean increasing some costs, they should also help you to save on some expenses. If your employee performs tasks that you once hired an outsourcing company to do, then you’ve already saved money there. Make a list of any savings you can think of to help you weigh up the pros and cons.
How You Can Reduce Your Workload
Usually, people hire based solely on the outcome of the above points alone. If they help to increase your profit overall, then hiring them is an easy choice. However, it may still be worth hiring an employee if they free up some of your extra time but cost a little more. In order to be successful in the long run, it isn’t just about how much money you’re making. It’s about working at a sustainable pace.
You will have to eventually hire a new employee if you want your business to grow and expand. If you’re unsure of when that should be, use this guide to help you weigh up the pros and cons. I hope you found this useful and you make the right decision. Good luck!
