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As your small business grows, so does the work needed to keep it operational. If you find yourself struggling to complete everything on your own, it may be time to seek help using a job marketplace like ZipRecruiter. This marketplace offers employers daily access to over three million job seekers. With just one click, the platform sends your work to a network of over 100 sites.
We’ve created a guide to help you know when to hire in your small business. Read on to learn the signals you’re ready to give your staff, questions to ask before hiring, and how to get started on hiring new employees.
5 signs that you’re ready to hire new employees
1. Business is booming
Growth is great, but how can you sustain it? If you run your small business alone or with just a few employees, a spike in sales could mean it’s time to expand your workforce.
For example, if you receive double the number of orders in a quarter, demand has increased and your small business’s ability to meet it should increase as well. So it may be time to grow your workforce alongside your growing business.
2. You’re overwhelmed
Small business owners often work more than 40 hours a week. While overwork may seem necessary, especially in the early stages of a business, it is not sustainable and your health can suffer in the long term.
If you can’t remember when your last day off was, it might be time to hire some help. Avoid burnout by hiring employees when you are financially able.
3. Poor customer satisfaction
Has feedback for your small business taken a dip? An increase in customer complaints can be an indicator that you are overworked, which can cause a decline in the quality of work. With the right employees, you can delegate responsibilities to ensure your company produces high-quality work and provides the best service possible.
4. You have big goals
Are you launching a new product or service in the near future? Part of your preparation for a big push in your small business should include evaluating the workload it will require. You may need to hire new employees to facilitate the launch. If the new product or service results in more sales (i.e., more work), you may also need to keep employees on staff to help scale that growth.
Without enough help, you may not be able to achieve your small business’ big goals. Additionally, if you’ve ever stopped potential advancement out of fear of not being able to handle the responsibilities it would entail, then you may want to consider how more employees could help you progress in your desired direction.
5. You lack key skills or competencies
Being a small business owner often means holding many titles, from CEO to social media manager to accountant. You may find, however, that you are not proficient in all areas. There’s nothing wrong with recognizing that you lack certain skills, especially in an area that may take years to master, and taking steps to fill that skills gap.
For example, you may want to hire an accountant on a contract basis to help you prepare for tax season. You may then want to keep that accountant on board to continue keeping the books for your small business finances. An accountant may be able to evaluate your financial performance and possibly identify areas for improvement or reduction in business expenses.
Questions to ask before hiring employees
Before hiring staff for your small business, consider the following:
- Business needs – Assess your needs and specify how an employee can meet them.
- Balance – Do you have room in your budget to pay employees? Analyze your finances to find out how much you can afford in terms of salary.
- Types of employment – Full time is one option, but there are others. Also consider part-time positions, temporary employees, contract workers and paid interns.
- Compensation models – If your budget is limited, consider alternative compensation models, such as performance-related bonuses or deferred compensation (e.g., equity in the company).
- Quality of the working environment – How will you ensure that your employees are satisfied with their working lives? Make sure you think about communication, safety, company values and non-monetary benefits.
Why should I hire employees?
Hiring employees can be essential to the growth of your small business. You may need employees to help you manage recent growth, or employees may help you expand to meet your goals. You may also want to hire employees to help you in very specific areas, such as social media or business management, that you are not knowledgeable about.
You can try using different channels to find suitable employees for your company. Online job search sites, such as ZipRecruiter, can be a great help. ZipRecruiter uses intelligent matching technology to scan thousands of resumes to find candidates with the right skills, education and experience for your job and then invite them to apply.
Keep in mind that you don’t need to hire full-time workers right from the start. If you’re unsure how employees might fit into your small business operations, consider starting with someone contracted to work for a specific period of time, also known as a temporary employee.
A temporary employee could be especially helpful during a period of high volumes of work that you’re not sure will last long-term. During and after your employee’s time with the company, you can assess the situation to better understand your company’s needs and how an employee can help you meet them.
Regardless of your industry, if you find yourself running out of time and energy while handling all the work yourself, hiring people might be the best move.
How to hire employees
Once you decide it’s time to hire employees, you should prepare before you actually hire anyone.
Assess your needs
What areas of your business do you need help with? Is it possible to meet those needs in a part-time work week, or will you need someone for up to 40 hours a week? Review your needs carefully before moving forward.
Job description
You should provide complete information to job seekers, such as information about your small business, experience or education requirements for the position, and the tasks they will handle on the job. Your job description may also include a correct job title, estimated weekly hours, wages, benefits, and salary details (i.e. how and when they will be paid).
Share your job opening
You can use job posting sites like ZipRecruiter to attract candidates – 80% of employers who post on ZipRecruiter find a quality candidate within a day. Share your work on your small business’s social channels too. You can also reach out to your network of friends, family or local community to spread the word. Provide clear instructions on how to apply.
Review candidates
Once you receive applications, set aside the most promising ones. Review these candidates carefully, keeping your company’s needs in mind.
Conduct interviews
Interview candidates in person, especially if you want them to see the workspace, or conduct interviews via video chat or phone. Prepare for interviews by writing down the questions you would like to ask your potential employees.
Hire employees
Before extending a job offer to anyone, make sure you have your new hire documents in order, including tax forms. (If you’re hiring employees for the first time, consider working with an accountant or business management consultant.) Some potential employees may want to negotiate aspects of the job, such as pay or work days. Consider in advance whether or not you are flexible on these aspects.
Enter your new employee
Thoroughly train your employees for their new role. Communicate what is expected of them and invite them to ask questions along the way. Establishing open communication from the beginning is key to a healthy working relationship with your employees.
When to Hire in Your Small Business FAQ
When can I start hiring employees?
You can start hiring employees for your small business when you have both the need for staff and the financial resources to pay them.
Where can I find employees?
You can use a job search site like ZipRecruiter to post your job openings and receive applications. Consider posting on your social media channels as well, and ask friends and family to help you spread the word.
What does the inclusion of new employees mean?
New employee onboarding refers to the process of bringing a new employee into your company. This includes completing necessary documentation, such as tax forms, as well as becoming familiar with company values and training for their new role.