To celebrate small business week, we’re tackling the issues that mean the most to our small business clients.
It’s the age-old small business challenge: What do you do when your business is booming but you are worn out and your family isn’t happy about the time you spend working? Or, your earnings have plateaued and you’ve maxed out on what you can earn with only you doing the work yourself – and it will eventually impact customer service.
There are many benefits to hiring, but there are also many risks and concerns to consider:
- Is the timing right? Whether it is your first or third employee it always seems too late for your business or too early. Finding that sweet spot is really difficult. Hiring another person is a big commitment to that new employee and by extension to their family. They are relying on you and your business for their livelihood! And you are counting on your business to continue at the current pace and profit – you’re hoping you’ve made the right decision.
- How will I train him or her? You’re already really busy, right? If you weren’t you wouldn’t be making the big decision to hire someone. So now you have to spend hours training the new hire with hopes it will save you time in the long run. Finding time to train is an investment that will likely come from time you would spend with your family or taking care of yourself.
- How do I find the right fit? What if the new employee can’t do the job or isn’t the right fit? How much time do you give them to learn and acclimate when it is looking like they will never “get it!”
- Bad hire? Must fire. You’ll eventually have to have that conversation – the one where you tell them that they are fired. That is really scary for business owners.
A study done by Robert Half shows that 58% of small business owners said it took less than a month to realize they made a bad hiring decision. However, it took an average of 8.8 weeks to let that person go; and nearly an average of five more weeks before a replacement started working. During this time 68% of businesses put the workload on existing staff. This is probably no surprise to you if you’ve hired an employee for your business that hasn’t worked out.
So what do you do? Well, you have an accountant to do your taxes, don’t you? What about an attorney to manage your legal stuff? Just like other important services you hire out to professionals, there are options for professional services that help you hire and manage your workforce.
Option 1: Use a “temp agency.”
Using an employment agency that offers temporary staff greatly reduces the risk to you as the business owner. It can protect you from not only hiring the wrong person, but also to help manage temporary upturns in your business that may not last.
The agency will spend the time finding a possible match and if it’s not quite right, you can call them with feedback about what didn’t work and have them send you a better match. And if the upturn in your business doesn’t last, you can cancel the arrangement. The drawback to these agencies is a potentially limited candidate pool since employees are chosen from the agency’s database.
Option 2: Hire someone to find the right candidate
If you’re confident in your business growth and need to make a non-temporary hire, just like you use the services of an accountant or attorney, using the services of a professional firm to hire can make all the difference. The wrong hiring decision is costly to your business because of the time you spend training and the increased stress on you and your company.
Wise HR Partnerships works with small employers to help find the right match for your company, your job opening and you, the business owner. Wise HR Partnerships has been helping folks hire employees for 30 years and while your job is unique we can assist you in the process.