Making the Right Choices: How to Hire New Staff For Your Small Business
The key to your business success is to settle for nothing but the best.
This means you must have top-notch and knowledgeable employees who are as committed to your business as you are. Whether you run a startup or an established SMB, the right team means everything. Hiring new staff can be challenging and daunting, however. Here is a handy guide that'll help make the process easier and much simpler.
How Do I Know If I’m Ready To Hire Staff?
You’ve built your business to the point where it’s time to bring on new staff. But how do you know if you’re ready? If you’re considering expanding your business by hiring some extra help, ask yourself these questions:
Do I need help with something that I don’t have the skills to do? If so, then it may be time to hire someone new.
Is my workload getting heavier than I can handle? If you find yourself working late every night or taking work home with you on weekends, then this could be a sign that you should consider hiring staff.
How will this affect my bottom line? Before making any decisions about hiring new employees, consider how much money will be required for wages and overhead costs such as insurance premiums and office space rental costs.
When hiring new employees, make sure they fit into your company culture and share your values. You want them to be happy working at your company as well as being productive members of the team.
Employee Or Contractor? Which One Is The Best For My Small Business?
As a small business owner, one of the most important decisions you will make is whether to hire employees or contractors. While both options have their advantages and disadvantages, it's essential to choose the option that best suits your business needs.
Key Points
Employees
Employees are individuals who work for your business and are subject to your direction and control.
You are responsible for paying their wages, taxes, and benefits.
You have the right to control the details of their work, including when, where, and how they work.
Employees are often more committed to your business and may have a greater sense of loyalty.
You can train and develop employees to meet your specific business needs.
You may have more legal obligations when it comes to employees, such as providing workers' compensation insurance and complying with labour laws.
Contractors
Contractors are individuals who work for themselves and provide services to your business.
You are not responsible for paying their taxes or benefits, and they are responsible for their own expenses.
You cannot control the details of their work, but you can specify the result you want.
Contractors can be more flexible and may be able to provide specialized skills that are not available in-house.
You can hire contractors for short-term projects or specific tasks without having to commit to long-term employment.
You may have fewer legal obligations when it comes to contractors, but you still need to ensure that they are properly licensed and insured.
Which One Is The Best?
The decision to hire employees or contractors depends on your specific business needs. If you need someone to work for your business full-time and perform specific tasks, an employee may be the best option. If you need someone to provide specialized skills for a short-term project, a contractor may be the right choice.
It's important to consider the costs and legal obligations associated with each option. While contractors may be less expensive in the short term, you may end up paying more in the long term if you need to hire them for multiple projects. Employees may be more expensive upfront, but they can provide long-term benefits to your business.
Ultimately, the decision to hire employees or contractors depends on your business needs and resources. It's important to carefully consider your options and choose the option that best suits your business.
How Do I Find The Right People For My Business?
Have your business goals in mind
You need to know what you're looking for and why. What kind of skills do you need to achieve those goals? What kind of background can the person bring with them, and what kind of personality do they need to fit into your team? Once you have those answers, then it's time to start looking for candidates.
Look beyond the job boards
One of the biggest mistakes that small business owners make when it comes to hiring new employees is relying solely on job boards like Monster and LinkedIn. While these sites can be helpful in finding qualified candidates, they aren't always the best place to find people who are truly a good fit for your company culture. Instead of just posting your job description and hoping for the best, try reaching out directly to people in your network who might know someone qualified. You never know where this could lead!
Be creative during your interview
One of the best ways to ensure that you hire the right person is to be as creative as possible during your interview process. This doesn’t mean that you should ask them to perform juggling acts or do backflips—although that might be fun! Rather, it means asking questions that will help you discover what makes someone great at their job, and how they think about their work.
For example: “If we gave you a million dollars, what would you spend it on?” Or, “What would make this job better?” The answers will help give you insight into their personalities and interests—and that can help inform whether or not they are suitable for your company!
Show them your business environment
If you're looking to hire new staff, an important thing you should do is show them your business environment. This will give them a better idea of what they'll be working with and what they can expect in terms of responsibilities.
If it's an office environment, show them around and explain how things work. If it's a retail store, have them walk around with you and tell them about each part of the store, including where the stock is kept, where customers are served and so on.
Let them ask questions
To make sure you're getting the best possible candidates, make sure you give them an opportunity to ask questions throughout the hiring process. This can help them determine if they're interested in working with your company and if they think it's a good fit for them.
What’s The True Cost Of Hiring Staff?
It’s important to understand that there is a cost to having employees that go beyond the hourly rate you decide to pay. This is referred to as your labour burden costs. The labour burden consists of required taxes, employment standard requirements and insurance. But as a company do you have any extra incentives you plan to offer employees such as extended medical, travel, cell phone or gym memberships? All these will need to be calculated to know the exact formula that would make up what your true cost is
Sample $25/ hour X average labour burden of 1.2% = $30/hour
Get Help From A Profit Coach To Guide You Through The Hiring Process
Before bringing on new hires, the first thing to do is to take a look at your business’s financial reports. Is the company growing? Is your company within your industry's Benchmark?
Is this growth a steady increase or a shorter burst of a seasonal situation? What will the new hire mean to your current profit the company is making?
Feeling overwhelmed with the hiring process but not sure who to turn to? Asking for help isn't always easy—especially when it comes to something as important as bringing on new staff. But asking for help is one of the best ways to make sure that your hiring process goes smoothly and that you get the results you're looking for.
If you want to expand your small business, it's important to hire the right people. But what if you're not sure how to do that? That's where a profit coach can help! A profit coach will guide you through the hiring process so that you are confident in your decision, and they'll provide valuable insight on how to make your business as efficient and successful as possible.
No two hiring situations are ever the same, and there will always be new challenges on the horizon. Still, I hope that the advice above has given you a good framework for your hiring needs, and I wish you the best of luck in what is hopefully just the first of many hires for your small business!