Choosing the ideal time to bring on a new employee can be one of the most challenging hiring decisions. If you put off hiring, you run the danger of slowing down business expansion. If you hire too soon, your financial situation could suffer. You should assess a variety of factors before adding a new team member. Here are some inquiries to consider as you make your hiring decision.
- Do you have the cash flow?
One of the largest budget line items will probably be labor. However, hiring a new employee is more expensive than paying for their regular wages and benefits. You’ll also need to budget for the costs associated with hiring.
According to a general guideline, depending on a number of factors, the cost is often 1.25 to 1.4 times the pay. Therefore, if you give someone a $35,000 wage, your actual expenditures will probably be in the $43,750 to $49,000 area, according to the Small Business Administration.
After you’ve hired the ideal candidate, you’ll need to set aside money for payroll, taxes, benefits, and possibly even employment insurance. Make sure you have the funding available to cover these costs both before and after the hiring process.
- Are your employees experiencing burnout?
A excellent indication that you should add a new team member is if there are indications that your current team is having trouble keeping up. Keep an eye out for burnout symptoms, such as rising absenteeism or rising employee sick leave. Find out straight from your staff whether they believe they can’t keep up with their tasks by getting their input. A team that is overworked can potentially cost your company more in lost motivation and productivity than it would to hire a helper.
- How much support do you need?
Adding a new full-time employee is not the only option. To help with the holiday rush, your company might hire seasonal staff. To hire an executive to guide your team during a period of expansion, you might explore fractional hiring. Or you may employ a gig worker to finish a specific project, like rebuilding your website. Then, create a hiring strategy that fits your budget with your workload after determining whether your team requires assistance with any particular business needs.
- Is your customer experience suffering?
A surge in customer complaints or unfavorable reviews may indicate that your team is overworked and unable to deliver the level of service that your clients have grown to expect. Retention is essential to profitability and other important outcomes, and it is influenced by customer service. If customer service is suffering, it’s a sign that your staff is having a hard time keeping up and could use some help from a few more team members.
- Are high-value employees spending time on low-value tasks?
Pay close attention to the time management of your staff. It’s time to employ if you notice that your managers are spending more time on administrative duties than on projects that can advance your company.
Start by assigning a monetary value to your time to see if you’re ready to hire a new employee, said Monster.com. You should be aware of your best value even if you are the owner and you don’t pay yourself much of a wage to begin with (perhaps you are even in serious debt).
The more expertise and experience a team member has, the more time they ought to be investing in projects that benefit your business. Hire a new team member who can start at that level and advance with your business to avoid having your CFO reviewing expense reports.
- Are you turning down new business?
You’ll be more confident to accept new opportunities as a result of new hires. A solid indication that you need to hire assistance is if you frequently find yourself turning down lucrative contracts or intriguing partnerships. Keep in mind that you don’t have to hire someone full-time. Consider getting seasonal or part-time work so you can take on the next interesting opportunity.
Bottom Line
SW HR Consulting has been helping companies to build their teams and values for over 10 years. Contact us to find out more about our unique hr outsourcing services and see how our expertise can benefit you.
