You have started your business, everything is going very well, and you now need help to continue to grow and are thinking of hiring your first employees. Great, but stop to ask yourself these questions before rushing in.
Could an independent self-employed freelancer or contractor be more cost effective?
Rather than making a full time hire, with monthly salary and employment costs, most businesses are better off retaining someone on a freelance or contract basis. If a part time virtual assistant or bookkeeper or person can handle the tasks you need help with, this is always a good choice.
How will the new employee add to your bottom line?
Your initial employees are a financial investment, so how will these employees help make your business more profitable. For example, an employee can focus on the day to day running of the business while you focus on sales and bringing in more clients.
Do you have a well-defined role?
Don’t advertise a vague job title; take time to come up with a job description that spells out the specific responsibilities of the new employee. That will help ensure that you hire a qualified candidate – and it will be easier for you to measure this employee’s performance.
Are you hiring someone with complementary skills?
Any new hire should have strengths that compensate for your weaknesses. For example, if your finance skills are lacking, look for an employee with experience in those areas, and can do a better job at these tasks than you.
Do you need to delegate some of your tasks?
All owner managers end up doing tasks that divert them from running their business. Ask yourself if you’ve reached that point with your business and need to start delegating some of the work. The right hire can assume responsibility for everything from invoicing, dealing with social media, copy writing, etc.
Can your network of contacts help you find your candidate?
Hiring an employee recommended by someone you trust will dramatically reduce the risks and increase the chances for a successful fit. So, see if your friends or business contacts would recommend a candidate, it always ends up as a positive conversation.
Can you commit long term to the employee?
With a new employee, the employer must be prepared to provide more than just monthly income – you have become responsible for someone else’s motivation, pay, safety, training – it is definitely a long-term relationship.
Will the candidate be a good model for future employees?
The first employees set the culture of the company, so look for people who understand how to be part of a small team but also can work independently.
Will your first employees be loyal?
Initial employees will join a small business that is growing so they will get to see the business at a unique stage. Make sure you understand the person’s reasons for joining and the experience he or she is seeking with your company. Less employee turnover means you will save money on recruiting and training costs.
Making the decision to hire your first employees, is not just a financial commitment, it will help grow your business, so hire with your eyes open. If anything in this blog strikes a nerve or resonates with your own experience, fill in the form or comment below