When Should Your Business Start Hiring More People?
Businesses that don't have enough people on the payroll may find themselves struggling. These are the warning signs.
When you own a small business, you have to keep a lot of plates spinning at all times, and it can be hard to know when to make decisions that can have a seismic impact on your operations.
One of the biggest choices you will have to make as an entrepreneur is knowing when to expand your payroll and bring additional workers aboard. It's not always easy to identify the right time to do this — let alone the right people to fill new positions — and it's a costly endeavor. As such, you want to be absolutely sure of your decision before taking the plunge.
The question you may ask yourself, then, is what to look for to inform your decision on expanding your business. While each business is unique, here are just a few telltale signs that you need to hire more people:
Keep your business on the right footing by knowing when to hire new employees.
How are employees handling their workload?
In a small business, employees are probably more like family to you, and you'll want to check in with those important people to see how they're handling their workloads. Monster.com notes that if you start to see signs of workers being burned out, putting in longer hours than they used to, or just not being able to hit goals, it may mean you've overloaded their plates.
Bringing on someone else to handle some tasks will help paper over these pain points and ensure that everyone continues to work in a way that guarantees success.
Can you afford a hire, or can you not afford to go without?
The problem many companies may see in hiring — and it's an understandable one — is that if workers are already being pushed to the limit, getting them involved in the recruitment process may seem counterproductive.
The average hiring process can take as much as 8-10 weeks , according to Insperity. During that time, workers will have even more to juggle, and it may cost your business tens of thousands of dollars in terms of actual expenses and the labor associated with diverted worker time.
As such, you may be hesitant, but you have to consider the long-term value of making the right hire at the right time. Consider the process an investment in your company's future.
How are external factors looking?
Looking at how things have gone for you when dealing with people outside your organization can tell you a great deal about how things are going on the inside. As Freshbooks points out, the two most important factors here are customer service and new business coming in.
When your customer service clearly isn't what it used to be, or when you have to say, "Thanks but no thanks," to potential new revenue streams, that's a big problem that leaves you spinning your tires. A new hire will open up the organizational bandwidth you need.
Again, hiring can be an expensive proposition for any small business, and you might need a little more financial flexibility to get the job done right. With the right business financing from Vectra Bank, you can put yourself on a more solid footing. Get in touch with one of our local representatives today to learn more.
The information contained herein may not represent the views and opinions of Vectra Bank a division of Zions Bancorporation, N.A. It is presented for general informational purposes only and does not constitute tax, legal or business advice.