Javier Arevalo, a business consultant with the USC Small Business Development Center, talks about hiring at your business.
After opening a new business, you soon could face this question: Should you hire employees?
With any fair amount of growth, extra manpower would increase effectiveness and productivity.
But you need a plan that clearly outlines the responsibilities of the new employee. Also, think about how adding a new employee will change the office dynamics.
Going full or part: You need to decide whether you need to hire a full-time, salaried employee or just a part-time employee during the peak hours of business.
An extra full-time employee has its benefits (greater involvement, more continuity and smaller learning curve) and its downsides (benefits expenses, potential downtime and more time/effort devoted to training).
You need to weigh whether a full-time hire is worth the cost for doing those tasks not being performed now.
Part-time employees are more flexible in adjusting their schedules to meet the demands of the business, and you, as a business owner, will not feel obligated to pay someone a salary during times when there is little need for the extra hands on deck.
Also expenses, such as benefits, would be lower if extra employees are hired part time.
But part-time workers might not be as loyal if they are not getting a consistent check, and you might need to find replacements more frequently.
Catching the train: Another consideration is the time and effort needed to find the right candidate and train them.
If you cannot devote at least five hours a week to train and supervise the new employee then the investment of the extra manpower might not pan out.
Get testy: There are many employment competency tests available.
Although some of these tests can cost $200 to $500, their effectiveness can often result in hiring the right person, thus saving thousands of dollars.