Managing
the growth
of your business:
Hiring a first
employee
For an entrepreneur used to working alone, hiring a first employee is not an easy decision. In many cases, it’s a necessary step to continue growing a business, but the jump can also be scary.
In a previous article, we discussed strategies to help you when your business is growing. This time, we are discussing the benefits of hiring a first employee. We also offer a few guidelines to help you make this transition as smoothly as possible.
When to hire?
You should look at the hiring of an employee as an investment. The arrival of a new person in your business does indeed increase your costs, but it can also help you push the limits of what you can accomplish. This is especially true if you recognize yourself in one of the following situations.
The demand is too strong and you have to turn down business opportunities.
If the growth of your business is limited by the amount of work that you can personally complete in a day, you are probably depriving yourself of opportunities to take advantage of new income sources. Have you ever refused a contract because you simply didn’t have the time to do it?
Whether it is to help you in your tasks or lighten your administrative load, adding an employee to your operations can help you get more work done, allow you to serve an even greater number of customers and, in the end, increase your revenues.
You feel the need to expand your business offer.
By hiring someone whose skills complement your own, you add new dimensions to your business. You are able to offer your customers a more complete service and you also become more attractive in the eyes of potential new customers.
By diversifying your offer, the future of your business will not be restricted to the ups and downs of a single market.
A careful investment to make
Hiring an employee may be an excellent way to reinvest your revenues. As with any investment, it is important to make an enlightened decision to maximize the chances of getting a positive return. You don’t want the hiring of an employee to turn into an unpleasant situation. Make sure you understand all the implications.
Are you ready to assume the expenses?
When you think about the expenses involved in hiring an employee, the first two things that come to mind are salary and benefits.
That said, the employee won’t work in a vacuum! You have to consider the cost of the employee’s work tools, an increase in the use of various supplies, etc. You may even have to modify the workspace to make room for an additional person. All these expenses can have a significant impact on a young business that does not necessarily have a huge cash flow.
To help you absorb the costs of hiring an employee, the federal government has implemented several >wage subsidies programs. You may be eligible for them.
Do you know how to manage staff?
Having a successful business and knowing how to manage staff are two completely different things. You certainly don’t need to go through a human resources training program to coordinate the work of a single employee, but free resources are available to help you learn more.
Your management skills may have a direct impact on your employee’s performance. And if your employee doesn’t like your approach, he or she may quit sooner rather than later, saddling you with the burden of restarting the hiring process.
Do you know the applicable laws and regulations?
As an employer, you have a number of duties and responsibilities to respect when it comes to your employee and the government. In addition to labour standards, there are numerous hiring requirements that you should understand before you start. Since a mistake in this area could be costly in terms of money and energy, it’s in your best interests to be well-informed.
The Acomba blog is brimming with articles on business, IT and business management.
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