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Now Hiring (Maybe)

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The sun is starting to break through the dark clouds in our economy, and many organizations are starting to hire again. The question that every small business owner has is when and who should I hire? There are many factors that any size business should consider before hiring. However, in small business the implications of making the wrong decision are far greater than in larger corporations.  The fear of these consequences leaves many small businesses frozen. The Good news is that there are some simple guidelines that can help you decide if you should hire or not.

1. First, ask yourself if the current workload for both you and your staff is acceptable? The key is to not hire because you think that your workload will be increasing soon. Hire only when there is a known need. Things to consider include:

  • Are projects currently completed in a timely manner?
  • Are customers currently being taken care of?
  • Are new sales leads currently being responded to quickly?

2.Then, ask yourself if hiring someone new would make you more profitable? All new hires no matter their position should make your business more revenue by bringing in new sales, or by creating better productivity that leads to higher profits.

 3. Lastly, ask yourself (and your accountant) if you can afford a new hire? When hiring a new employee you should be able to afford them for at least 6 months without increasing your current profitability. It will take time for a new employee to be trained and to start producing results.

These three questions are obviously not a comprehensive list of everything to consider. Each business has their own unique set of needs, capabilities, and requirements. The list, however, is a great guideline to help you start thinking about hiring or not. The important thing to remember is that hiring new employees is not simply an HR matter. You should always bring your accountant into your hiring decisions. Let them help you decide if you can afford a new hire within your current budget. Once that question is answered it becomes a lot easier to assess the actual need for new employees.

July 7, 2011 by Executive Editor, Mark Zarr.  All rights reserved 2011

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