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Should I Hire a New Employee?

When your investment begins getting traction, and you know progress is on the horizon, if it hasn’t started already, it might be the season to look into hiring a new worker. There are several things to ponder, and it helps to have a plan to guide you to a solution. Is it the right time to hire more employee? Here are a few things to consider before you begin placing job ads:

Is It Something, Your Company, Can Afford?

Think about what makes your businesses’ income. If your growth seems good, and you have the money to maintain a new worker, increasing should feel like a normal step, guided by your requirements. If you’re still uncertain about where you are with the budget, diving farther into space planning is a sure-fire method to tell if your company is ready to grow.

Take Time with the Interviewing Process

Always begin this process when the financial ability to hire is on the “horizon.” In other words, when the possibility is apparent, start the interviewing process. You don’t have to hire, and even if you aren’t for some time, you will get a pool of candidates. This is data in itself, enabling you to see who your posting reached, and what caliber of candidates it attracted, including a few other variables.

Never hire on a whim. Lower quality corporations permanently hire who they want on the spot. This may sound like the sign of a skilled recruitment army, but it’s otherwise. You see, they employ the first candidate they reach who meets a set of “qualifications,” or at least who reaches close to it. The turnover frequencies of these companies prove a shortage of consistency.

Type of Employment

There are four primary kinds of employment. Your strategy depends on your industry needs.

  • Permanent employee: will require constant vigilance and effort. It’s an open-ended position, with no fixed end date. Of course, you have to think about the many legal obligations with this sort of employment.
  • Fixed-term employee: covers workers whose contract expires on a pre-decided date, after the completion of a particular task, or after the end of a specific event(s). This is an excellent solution that can entice good employees, without much of the obligations of Permanent employment.
  • Contractors and subcontractors: A great approach is the independent contractors because they are much simpler to deal with. Several legal variables like income tax, Social Security, and Medicare from salaries paid don’t have to be kept and assorted out by your company.
  • Employment agency staff or temp workers: This kind of work is done by an agency and isn’t very cost-effective for SMBs. Agency staff is primarily used for physical labor to reduce massive equipment costs. I just mentioned this because some agencies have attempted to morph into IT and clerical fields.

Total Employment Costs

There are several parameters to consider when hiring workers. What type of employment you pick will circumscribe the liabilities you have to think. Building some metrics will ease. This article goes into great depth. The gist would be taking the base salary of your employee pool and multiplying it by some of the costs they incur. This method implies around 1.2-1.5 times base salary. So someone making approximately $30k would bear a cost of about 39k at 1.3×.

Wrapping Up

Hiring employees is a step that genuinely defines growth. Not only do you get one more person to help attain your goals, but also an obligation to push forward that feels like your business is growing. With the right approach and a respectful manner, you can go far away. Also remember, there are those who value some things more than money. Tap into that with a prospective employee, and you will indeed gain a loyal employee.

Alma Reed is an author and researcher dedicated to enhancing productivity. She is deeply interested in areas such as time management, increasing productivity, and fostering healthy routines. Through her writing, she aims to assist people in boosting their job performance and attaining an ideal balance between work and life.

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