Hold Your Horses on Hiring That First Employee

Did you know that over 89% of all US businesses employ fewer than 20 people? And with the rise of freelancing, this number is bound to go down even further. As a small business owner today, you have a chance to save money and boost your company’s productivity by outsourcing to freelancers instead of actually hiring employees. The fact that this will help you cut down on the taxes makes this option even more appealing.

That said, I believe that a business does need to have full-time employees in order to succeed. They are the sign that your company is here to stay and they help you prevent the quality of your services or products from dropping.

Also, hiring your first employee is a rite of passage. But you need to remember that making a mistake with that hire can impact your chances of success. Therefore, be sure to consider the following before you et that new person on board.

• Is there enough work to warrant hiring them? If yes, decide right away if you need one full-time employee or some part-timers.

• Are they interested in the job or the salary? There’s nothing wrong with wanting to be paid well for your work, but don’t forget that small businesses often run on enthusiasm. Therefore, any employee of yours must be passionate about moving your company forward.

• What are the legal requirements you need to meet for hiring an employee? They differ depending on location and the exact status of your business will affect them as well. I implore you to do this research before you start looking for candidates because after considering taxes and other issues involved into actually having full-time employees, you might want to stick with freelancers. It’s not only because of the stress but also because this whole thing will eat away a part of your profit.

Finally, ask yourself what you can offer to this employee? Will you help them to build a career or do you just need an obedient drone to do the legwork? In the latter case, you should be able to use specialized software and desperate college students as part-timers.