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How To Hire Your First Employee
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Article 1: Should You Hire?
Just because you’ve had a busy month, quarter or even year doesn’t automatically mean it’s time to hang the Help Wanted sign.
“When you become an employer, you’ve taken on the responsibility of creating someone’s livelihood — literally, providing food and shelter for this person,” says Lisa Aldisert (www.pharosalliance.com), a management consultant who has advised small-business owners on hiring and hired several of her own employees. “So it’s not something that should be taken lightly.”
Ask yourself these questions first:
Will you need the extra help for the foreseeable future, or are you just going through a temporary spike in business that may slow down soon? Can you identify tasks that are not productive for you to do that could easily be delegated to an employee, thus freeing you to concentrate on tasks that help grow the business? Have you clearly defined what it is the employee will do? “Define not just the tasks, but the key responsibilities of the job,” says Aldisert. “And be prepared to provide adequate training.” Are you sure you can afford the employee? Base wage or salary is just the beginning of your expenses as an employer. Taxes, workers’ compensation insurance and benefits typically add as much as 25 percent to 40 percent to wage or salary for a full-time employee. How much additional revenue will you need to generate to cover the total cost (including taxes, insurance and benefits) of the employee? Can you maintain that revenue to support the employee?
Most small-business owners actually wait too long before hiring their first employee because they’re hesitant to take on the responsibility, says Aldisert. “So don’t wait too long, but don’t make the hiring decision casually, either.”
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