It is time to hire a new employee. What do you need to know? Here are some questions to ask yourself when considering business expansion and whether or not to hire that new employee.
Can You Afford It?
Have your projected financials been on target or above target? Is there an opportunity for expansion that your current employees cannot cover? Will expansion bring new revenue and will the projected results warrant the expansion? Some additional thoughts along these linesare discussed here.
Is the Timing Right?
Do you have a loyal customer base? Have you been in profit for three years? Is the industry growing? Are you turning away business? Are you solid in the organizational, operational part of your business? If you are still struggling with some kind if organizational disorder, there is no point in expanding the problem. Some additional pointers on timing are found here.
Can You Outsource It?
Can you outsource the job to another company as a sub-contractor rather than doing it yourself? Or, can you outsource the vetting of a potential employee to a temporary work agency? The benefit of working through a temporary agency is that there is an initial vetting of the employee at the time of the agency adding the person to their rolls. There may also be some training that occurs. If the employee does not work out, you are not bound to keep him or her. This is a big plus.
What is the Job Description?
It is very easy to get outpaced in today’s electronic world. What is the job description? It is so important to match the skill sets needed in the job to the employee. Yesterday’s employees might have worked with minimal technological skill sets. Today’s equipment and tasks are almost invariably connected to technology in some way. If a potential employee is not comfortable with that, hiring that person is probably not the best choice. Beyond that, even if there is no technology involved, make sure the potential employee enjoys the skill sets required. Even for something as simple as counting inventory, if an employee does not like numbers, then simply having an extra body around is not going to add to your organization. Worse, it will detract from the morale of other loyal employees. If an employee does not enjoy his work, and shirks it, that places a greater burden on the others. They may go along with that dysfunction for a while, but eventually the break down in morale will create a break down in the organization as a whole.
What Value Do They Bring to the Organization?
It is simply not enough to hire another body. There needs to be an excellent match between the skill sets of the new hire with the job at hand. This is an employer’s market. It is better to wait for the employee with the skill sets you want than to grab the first person that can do some of the tasks, but not all of them. Employee satisfaction is a key factor in how well work gets done. If an employee is not happy with their work, they will not do it, or drag their feet. If you are going to hire a new employee, they must bring all the skills needed for the new job description. Anything less than that is going to put a burden on current employees.
Some Additional Considerations
While this was pointed out before, it bears repeating. Going through a temporary agency is a valuable buffer zone against a bad employee. The fact is, an employee can pad the resume and turn out to be less than what was expected. By going through a temporary agency, it keeps undesirable permanent employees from becoming a part of the team. Another problem with direct hires is that in some states, those on welfare systems are required to show “good faith” effort that they are looking for employment. Unfortunately, the burden of that problem falls on the employers. Suppose someone has no car but is able to make it to a job interview via a borrowed ride. That person will not be a good employee. However, he is not seeking employment for the job necessarily. He may be seeking it simply to remain on welfare. And he will consume the same time and resources of the hiring department as a truly valid job seeker. Both of these points are reasons why it may be wise to go through a temporary agency.
If a temporary employee turns out to be a valuable addition, then of course, a permanent position can be offered. And if the whole idea of expansion turns out to be a bad one, the employee can be released with no repercussions. Temporary agencies exist for upper level job descriptions as well. They have moved beyond being solely about the blue-collar labor force.
We love helping entrepreneurs and businesses understand their true costs and reach their profit-making potential. We want to help you save time, resources, and accomplish more with less stress. If you are thinking about expansion, contact us to affordably unlock your company’s potential.