Some business owners are chomping at the bit to initiate their first hire, while others are completely reserved and will put off the decision for as long as possible.
It doesn’t matter how big your business is; this is a huge commitment and, in some ways, throws you into the big time. You’ll suddenly have responsibility for somebody else and, of course, the additional financial burden you’re taking on for your company.
But when is truly the right time to hire? Let’s look at some of the points you need to consider.
Do You Have Sustained Demand For An Extra Pair Of Hands?
This is the most important question, and it should be given the most consideration. You might be in a position where you’re swamped with work, but will this be sustained?
The classic example is around Christmas. Many seasonal firms see their sales hit all-time highs but crash in the following months. It goes without saying that while a temporary pair of hands would have been worth their weight in gold over the festive period, that’s precisely what it would have been – temporary. The business in question would not have had the demand to finance a full-time employee.
Think long and hard about this, as it’s a very easy trap to fall into for new businesses.
Have You Thought About All Of The Costs?
Hiring somebody isn’t just a case of finding the right person and agreeing on a salary. You also have to take into account other costs, such as:
- Employer’s National Insurance
- Pension contributions
- Office space
- Equipment
- Training
- Any additional insurance requirements
Be sure to factor all this in and ensure you can still afford to keep the lights on!
Do You Have The Time To Train Them?
When you’re running a business, there are always a million and one things you need to do. Does this include training up a new employee?
This is an important question to answer, as you need to make sure you can give somebody the time they need to get up to speed and work autonomously. Quite often, businesses struggle with finding the right person – through no fault of the person they have hired. They are thrown in at the deep end, with business owners lacking time to provide the adequate training which would otherwise see them succeed at the job.
Could You Outsource The Work Instead?
Sometimes, outsourcing the work you need might make more sense rather than hiring somebody in-house. This is often the case with one-off projects or pieces of work that don’t need to be done regularly.
It’s also worth considering if you’re only looking for somebody to fill a role on a short-term basis. In this instance, it might be more cost-effective and less hassle to use a freelancer or somebody on a contract basis.
Again, if we revert to our Christmas example – this would have been the ideal solution for the business in question. Over recent years, we’ve seen a surge in freelance and temporary workers – creating a hybrid method for both employers and employees. This could be a viable solution for you if you’re still unsure.