Should I Hire Another Employee For My Small Business?
Spring is finally here and this month we will focus on some seasonal solutions for your small business and your life. For many small business owners, we are entering into a busier time of year. In Michigan, it seems to have much to do with the weather. It effects people’s moods, habits, how much they buy, how early we plan and more. Today we will tackle a small business question. When should you hire another employee?
Productivity – Should I Hire Another Employee?
How productive my business currently is would be the first thing I ponder. Are my other employees and team members busy enough to constitute an additional hire. If you work in a business where you can run a lot of reports, now is the time. These reports may be able to tell you your busiest times and what hours you should hire someone for.
Cost – Should I Hire Another Employee?
The second thing to consider is the cost of hiring this person. This is a little different than budgeting, which we will get to next. This is more about what this decision could cost you. Here are some simple questions to ask:
- Will they be part time or full time?
- Permanent or temporary hires?
- What would you pay per hour?
- Is there a way to utilize this employee to take care of tasks that cost you money?
Projections – Should I Hire Another Employee?
Once you know your cost, you can determine if it fits into your budget. How much can you allot for this hire? Also, consider how you project sales could increase or be impacted if you had more help.
Timing
Last, is it the right time to add another employee? Timing can make or break just about anything. How could you benefit from waiting 30 days? Make sure to consider how long it takes you to procure and train new employees. All of these factors together can help you determine if this is the right time.