As your business expands, you may find there comes a time to grow your team to keep pace with this increased demand.
Adding employees to your staff can be an exciting time, but expansion should be carefully thought out to avoid costly mistakes. One of the first things you should look at is the current workload versus the projected workload – is there a need to increase capacity due to things like seasonal uptick in business, or has the need to add someone to your team arisen due to long-term demand? What is the turnover projection likely to be? This will determine whether you can afford to pay out another salary, along with how much this would be. Depending on your findings, you may wish to search for a new employee and begin the hiring process, or seek out a contractor to help with your needs.
Under some circumstances, it may be more advantageous to your business to hire a contractor.
For example, if the current demand is there but future demand is uncertain, a contractor to undertake work on a temporary basis could be the solution. If you need someone to start immediately, contractors are ideal as they do not have to give notice to an employer elsewhere. It may also be the case that the role requires specialist knowledge, which is where you could use the skillset of a contractor.
A contractor may cost more in terms of billable hours, but given that you will not have to pay benefits or salary, you might actually find this a more cost-effective way of growing your staff. You also have flexibility in terms of how long they work for you and if you hire them again. While these may be some perks, there’s also the fact to consider that this individual is not a part of your staff, and can’t be expected to promote your brand or business as if they were. They are essentially a gun-for-hire, working under their own terms and often independently.
If profit margins suggest that it is time to add another full-time employee, you can then start the recruitment process. Hiring a new employee can bring a great sense of achievement and pride, as it is indicative of the fact that the company is growing and thriving. The right employee will also take pride in working for the company, which can help to further the brand. As they are your employee only and not juggling commitments with other clients, you can also potentially expect a higher turnover of work than you would with a contractor. With that said, a great deal of time must be invested into screening candidates and conducting interviews, and then there are the costs of salary and benefits to think about as well.
When it comes to hiring, there are a few ways to find the talent you need for your organisation, whether it’s a contractor or an employee you are after:
Working with a small business consultant can help you determine whether a contractor or employee is the best fit for your needs, and then provide advice regarding the recruitment process thereafter to help you maximise your success.
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