When you set up your own business, you often start off with just you and no one else. Perhaps you will begin with a business partner or someone else to help you out, but you’re unlikely to have official employees. Taking on your first employee can be nerve wracking for both you and them. You may be unsure of how to manage someone, and not yet confident of your management style. On the other hand, they might be having the same problem, unable to gauge what sort of boss you will be, and perhaps working in a small company for the first time. Before you take on your first employee, consider these key factors.
Can You Afford It?
Before you hire anyone, it’s essential to know that having even just one employee can be expensive. The hiring process can take up a lot of your time and money, and once they work for you, there are more costs. You may need to buy them new equipment, including a desk and computer, and even find more office space for them. You’ll also have to find at least some of your time to dedicate to managing them, even if it’s only occasionally directing and checking in on them. You may need to train them, and your business may have more expenses now that you’re an employer. And all this is on top of their paycheck.
Are You Protected?
When you take on an employee, you must make sure that the work environment is safe for your staff. Many a business lawyer like Raul Loya also focuses on employment law, and will be ready to protect an employee who feels they have been unfairly treated. Before you welcome someone to their first day of work, you need to assess and address health and safety risks. You should also consider learning about how to be a good employer and considering the way in which you want to treat your employees. It’s also a good idea for you to have a lawyer of your own, in case of any disputes.
Will They Make or Save You Money?
Hiring an employee is costly, so it’s best if they help to improve your finances in the long-run. Ideally, their role should either allow you to make more money or save it. You should consider how the role you want to create will benefit the company monetarily. Perhaps your new employee will expand sales, implement a marketing campaign or take care of something you used to do so that you can focus on more important tasks.
How Much Free Time Will the Hire Get You?
One of the main things to look at is whether taking on an employee will free up your time. If you can spend more time selling or networking to expand your business, this is a huge benefit. But if you’re having to use more of your time managing them on top of doing your usual workload, is hiring someone the best decision? You have to work out whether you can change your work patterns to help your business profit.
Hiring your first employee is a learning curve, and a new step for your business. But if you want to expand, you’re likely to have to do it at some point.