Written by Guest Author | February 9, 2015
The late 2000s economic slowdown and fragile recovery earlier in the 2010s clearly aren’t distant memories for many recruitment agency clients, given how hesitant many remain about hiring.
That’s understandable in some ways, but if a company is to grow, recruiting the right staff at the right time is essential. Getting it wrong, though, can be hideously expensive.
How do you strike the right balance and decide whether now is the time to hire? Here are five great questions to ask yourself.
1. Where will your business be in one year?
A firm sign of a well-run business is one where the owner knows where it is headed, even if that’s only in fairly general terms. What does your business plan say and what goals have you set? Will new staff at this time help you to achieve them? If so, what type of employees do you need?
2. Do you have the money for new staff?
It isn’t just a new worker’s salary that will determine whether you can afford them, as there will also be any relevant training time and costs and other possible perks – like health benefits – to think about. Taking on someone now may reduce your short-term profits but be more lucrative in the long-term, so you should think carefully about that added expense.
3. Are random tasks taking up too much time?
Do you find yourself bogged down each day by tasks that could be done more efficiently by someone else – things like managing the bookkeeping and responding to customer queries? Perhaps you’d rather free up time for fine-tuning your marketing plans or improving your company’s products and services?
4. Is there sufficient capacity for a bigger workforce?
Hiring someone new is an easy enough decision if you have a large empty office and other factors point to a need for reinforcements. But if your business is based in your garage, you might need to ask any new employee to work remotely – which may not be appropriate given their role – or move to bigger premises, which would need to be factored into the budget.
5. What is the nature of your growth?
Slow, but steady growth suggests that hiring some permanent employees could be a good idea. But if your company sees spikes in demand at certain times of the year, such as Christmas, it may be best to stick to temporary workers around those periods while waiting for growth to become more consistent.
Ask yourself these five questions every time it enters your mind to take on a new employee or two, and you’ll boost your chances of making the right decision.