If your business has got to the stage where recruitment is on the cards, then a huge congratulations is in order. After all, we’re so used to hearing about the difficulties that new businesses face that getting to the point where you’re contemplating hiring new people is a bold and successful step in the right direction.
Of course, this is by no means an easy decision. From the outset, it can seemingly solve umpteen productivity issues. However, in reality, there are far more considerations to take into account, which will be the basis of today’s topic.
Why are you recruiting now?
We’ll step into some of the more granular considerations shortly, but let’s first begin by asking, why now? For some companies, it might be because of months of struggles with fulfilling customer orders. In these cases, one could argue that this is most certainly the correct time to take the plunge – if all of the financial factors have obviously been considered.
Some businesses may make the decision on the back of more short-lived success, though. For example, companies will start to consider an extra pair of hands following an exceptionally busy festive period (or sometimes, in preparation for this time of the year). It’s here where you need to sit back and really ask yourself if this level of demand will be sustained. Or, is it something that is going to level off until the following year? Is there a long-term requirement to have extra employees if it’s the latter?
Have you thought about the additional costs?
No, we’re not talking about salaries – this is just the tip of the iceberg. If some sources are believed, your annual figures can be around 1.4 times the base salary. Unsurprisingly, this can turn a potential recruitment drive entirely on its head.
It’s at this point that you need to think about the administration costs, pensions, benefits, and even the additional insurance requirements that you may now have. All of these costs tend to be forgotten about but need to be worked into your calculations if you are going to decide if now is truly the right time to make your first hire.
Do you have time to recruit?
Finally, let’s talk about another factor that’s often forgotten about. Even if you have done the maths and concluded that your business is in the right financial shape to make a hire, you need to think about the practicalities.
Particularly if you are currently operating alone, how will you train your new recruit? Of course, you’ll find a way, but this will come at an immediate cost to your company’s productivity. In other words, the benefits of having an extra pair of hands will not arrive on day one.
You also need to consider the process of finding someone. Sifting through CVs and arranging interviews might sound exciting from the onset, but it can drain your time. Ask yourself if you are really in a position to commit to this – or would another point in the future be a better point to make this first hire?