Hiring an employee, or several employees, is a situation that you need to consider carefully before you do it.
In this article we are going to take a quick look at what you may want to consider when trying to decide whether or not you need to hire.
Is A Lack Of Staff Costing You Business?
This is by far the most compelling reason to hire an employee or more for your business.
If you find that you are so busy working that you don’t have time to reply to phone or email messages, then it could be that you are missing out on a lot of extra work.
Likewise, if you know the potential for more work is out there and you aren’t cashing in because you realize your plate is already full, then you might want to consider hiring someone to do some of the work that you generate.
In either case, you need to remember that once you hire an employee, it is your job to take care of him or her. Carefully assess your situation; is this busy month an anomaly? Can you expect business to die down in the next month or even couple of months?
If you hire an employee today you will still have to pay her a couple months down the road, no matter what. Maybe it is just a matter of pulling your socks up a bit and putting some money away for a slow month.
On the other hand, if you have had several busy months and know you have missed out on money even so, hiring is a good decision.
Employee or Contractor?
One way that you can avoid the long term commitment, and the resultant additional taxes, is if an employer is to use the services of an independent contractor.
You will want to be very clear on the differences, because the Internal Revenue Service loves the extra income tax and unemployment tax that they can receive from a small business owner with employees, and are always looking for ways to label someone who does work as an employee.
The basic difference between an employee and a contractor is the amount of control you, as the small business owner, have over the person in question. A contractor usually will work for more than one company and will have control over her own schedule, and not limited to work hours set by you.
It is possible that the work you need to get done can be handled by an independent contractor, making it easier for you to avoid hiring.
Even if you do find that an employee becomes necessary, you may find that your relationship with a contractor pays off; she’ll know the rope of the job and you already have an idea about her work ethic.
Remember that hiring brings with it a whole new slew of concerns and responsibilities within your small business. Carefully decide if hiring is the right move for your business in terms of work, finances, and commitment.
