It’s a question every entrepreneur asks him or herself when considering how to achieve their new-business goals.The natural cost-efficient method many new business owners opt for is to try to go it alone during the start-up phase. But it’s important to know when it’s time to hire, and what your hiring options can include.
Getting help so you can focus on the core business strategy is an important step in owning a new business. Whether this is from day one or later down the track, when you have determined it’s time to get help, it’s worthwhile taking careful considerations to your options and their immediate and longer term implications:
A very useful initial approach would be to hiring independent contractors or outsource instead of hiring employees. Using independent contractors allows you to easily staff up or down as needed, depending on your business short term objectives.
typically less expensive than hiring employees
flexibility to engage on a project or per-hour basis
avoid ancillary costs and taxes associated with part time/full time staff
immediate access to specialist experts in their fields
less control over the output of an independent contractor or outsourced provider
you could potentially be leaving your intellectual property or key business strategies in the hands of an outsider
Part-Time (casual or temp) Employees
When looking at your budget and possibly being unsure around the time required for each activity, part-time employees can provide an excellent option where flexibility will be key.
part-timers can adapt to your pace of development
you can have full control over their activities whilst in your work place
generally part-time staff are less expensive than full time or independent contractors
you can quickly adjust their hours if needed
they can develop with your business and there is always the potential to increase hours or even become full time employees
part–time staff are hired specifically for their existing skills and should hit the ground running
as they are part of your business they can form relationships with customers and suppliers
part-time staff may leave your business without much notice
you must ensure that you are complying with local and federal employment obligations as they relate to part time staff
part-time employees incur taxation costs
by their nature part-time staff enjoy the flexibility this type of arrangement offers them. You will have to be prepared for potential changes to their schedules
There is no question that hiring full-time employees has advantages however finding the correct employee to take a punt on your idea, no matter how great can be difficult, especially if your ideal catch is already working in another employer.
building a full-time and dedicated team of employees can help your business form a sense of community and work to your goals
full-timers are likely (not always) to be more reliable, punctual and loyal than independent contractors or part-timers
they can buy into your strategy and really care about your longer-term business goals
salaried full-time employees cost more
to attract high-quality workers, you’ll possibly have to offer incentives
full-time employees are looking for career/professional development which may not be compatible with your stage of evolution
incumbent in hiring any full-time employees are your legal responsibilities as an employer, such as compliance with relevant employment laws and employee rights relating to termination, employee safety, benefits, discrimination, harassment, and more
Don Robertson is the MD of www.jobflex.com.au