If you’re wondering when to hire in your small business and how to achieve it, you are at the right place. When you make the decision to hire an employee, it is extremely vital to be in sync with your business’s requirements and needs and to act accordingly.
And obviously, being a CEO, who has a very hectic and busy schedule, it can become quite strenuous to keep up with your company’s growth while simultaneously doing all the work needed to keep the business running.
As a small business owner, there will be many stepping stones you will have to cross to reach success. One of these stepping stones is to Hire Your First Employee and the employees that follow the very first.
As much as you want to be a One Man Army, a business is not a one-person association. You will need helping hands or additional staff to share and manage your workload as well as success with.
When to Hire in Your Small Business
Before we dive into when to hire a new employee, just know and understand that you must never hire an employee just because you think that every business needs to hire additional staff. And, while there may be a need for additional help, small businesses must also consider their current cash flow and retain existing employees.
So, let’s get into the step-by-step guide which will answer the question of when to hire in your small business.
1. When you Stop getting Time for Yourself
Are you sacrificing your free time, weekends, holidays, and even sleep to complete a task that, given a small team of employees with different skill sets, would save time and be more effective and creative?
Then you know it is time to hire additional staff to become your helping hands.
Since you can not get any more time other than the 24 hours everyone has, you need a way to finish your work on time without it interfering with your free time, you need more staff.
2. When You Shake Your Head at New Opportunities
Say, you have several clients, who are your repeat customers, which is great, and your sales are increasing as their demand increases. Organizing them can take up a lot of your time and prevents you from seeking potential employees.
You are working extremely hard, you are spending your money as CAC, and putting in a lot of effort, just so you can gain more and more customers. But, you have to say no to them.
They will not wait around for you and will immediately go to your competitors. Turning away a potential customer is one of the major red flags and simply indicates that you are understaffed.
That’s unacceptable! You need to make the decision to hire a new employee(s) to help you carry the workload, and welcome new tasks as well as potential customers.
3. When your Customer Service is Not Good Enough
One of the most palpable and undeniable indicators that it is time to hire is when you start lacking in your customer service level.
When your clients begin to inform you about missed work, an incomplete task, or a deadline that totally slipped your mind, it simply means you have stretched yourself so thin, you are nearly burnt out.
This will not only damage the reputation of your company but will also result in poor quality of work from your side.
The sales going down because you left an order discontented or if you fulfilled it past its due date, is a clear sign that you are severely understaffed and need new hires on your payroll as soon as possible.
Clients getting no revert back on their emails and no callbacks on their phone calls that went unanswered will put them directly at the doorsteps of your competitors because a lack of response will force them to move on, simply indicating that you need the right person to handle this increased workload to increase the revenue of your company.
4. When Your Employees Are Stretched to The Max
As the CEO, who is not only a salary provider but also a good employer, you need to understand that employee retention is critical.
But, it will be impossible to do so if your employees are so overworked and under stress that they start to take sick leaves and their morale takes a nose dive at an alarming rate. This is the time to start your hiring process to bring in more employees.
Your employees might not say anything to you about being overstressed as they might not want to be labeled as “unwilling.”
If the core value of your company is open to communication, talk with your staff at regular intervals to get a feel of what they want, and what will boost their morale.
If they are getting overwhelmed because of the workload, or if their overall health is good. Then, decide accordingly.
5. When You Need a Particular Skillset
It is no secret that in today’s market, the competition is so fierce, that you need every aspect of your business to be handled by an expert with a particular skill set. And when it comes to small businesses, the competition becomes a race of life and death for the companies.
Being the CEO, you might know a lot about the different things required to take your company to the heights of success, but you are no expert and it is no shame in admitting that you need an expert to handle some aspects of your company.
You can be great with the sales & marketing part of your business but you are not a good writer and don’t know much about SEO, so you hire a content writer who has expertise in SEO.
They will bring in the traffic you need on your site. So, by hiring this expert, you have not only saved your time which you can now devote to your area of expertise but have also strengthened the one area you would not be able to do justice to.
Things to Keep in Mind when Hiring for Your Small Business
Small business owners should be mindful of when to hire and be sure to do it only when the need is truly warranted. If a business owner decides that a full-time employee is necessary for their new business, they should carefully weigh out all their options before making any decisions.
Before making any hires, small business owners should define the specific job they need filled and create an accurate job description with clear expectations and skills required. It’s also important to research how much pay is expected in that particular industry.
To ensure that you are getting the most qualified candidates, utilize free online job postings, recruiting services, as well as word-of-mouth and referrals.
One of the best places to look when considering hiring new staff is your own current team or freelancers you’ve worked with before. These people already know your company values and have a good idea of how your business works; it will save time onboarding them into your organization versus hiring someone completely new.
If needed, consider co-founders who can take on additional tasks without creating additional costs. However, keep in mind that any kind of increase in staffing means added payroll costs or equity contributions and other benefits that could potentially hurt cash flow if not planned for accordingly.
Keep the following points in mind while hiring for your small business, once you have got the answer of when to hire your business:
1. The Job Descriptions
Creating an accurate job description will ensure you find qualified candidates with a skill set that meets your business model. If a full-time employee is not possible, consider hiring independent contractors or freelancers for specific tasks instead of taking on a full-time hire.
2. Cash Flow Problems
Adding new hires can also cause cash flow problems due to their salary and additional costs like payroll and benefits. Take this into consideration before making any final decisions on bringing in new employees as money may be better spent elsewhere, like new customers or marketing to increase revenue.
3. First Impressions Go Both Ways
Do not forget that you need to impress a potential employee as much as they need to impress you. Though you are the one that decides whether or not a particular candidate is suitable for the job, the final decision lies in hands of the candidate whether or not to join your team or your company. Being a good employer (or a potential employer) is a must in business.
4. The Decision
Pay close attention to red flags that come up during interviews – trust is key when making a final decision regarding any potential hires! When to hire in your small business is a big decision.
So if need be, consult another party familiar with this type of position or simply ask questions related directly back to their skillset so that you know they are ready and willing to take on these duties moving forward.
Once you’ve identified a few highly qualified candidates have them interview with other members of the team or even existing customers if appropriate so that everyone has a voice in who will become part of the company moving forward!
Considering the fact that you need to hire some employees to manage your business, you should always check the timing. You might not just want to waste the talent of your employees. So consulting with your co-founders or advisors will also benefit you.