Growing Pains: 3 Things to Consider When Expanding Your Workforce

The start of the school year is when a lot of businesses come back from their summer break and ramp up activity for the end of the year. More activity hopefully leads to more growth and, eventually, the exciting milestone of needing to expand and bring in more help - either part-time, full-time or on a contract basis. Owners of growing small businesses will then face the critical decision of whether to create in-house positions or outsource the work. Although this dilemma does not come with a cookie-cutter answer, there are some guidelines you can follow to help you make the best decision for your business needs.
Performance Management

One of the key factors to consider when choosing to outsource or hire is performance management. Small business owners need to run a tight ship and there’s little room to pay people who aren’t really contributing. Pay attention to who is working smarter and who might just be along for a leisurely ride. Small business owners who hire freelancers that charge by the hour or day need to truly understand how long it takes for work to be completed – does it really take that many hours to complete a task? If you hire full time employees, make sure you have enough work to keep them fully utilized – you’ll be paying them whether they have a lot to do, or are just checking their Instagram feed on their phone all day.

Loyalty and Commitment
In a perfect world, it would be easy to find and hire a new employee who cares about your business as much as you do. Though it might be hard to replicate the investment of a business owner, you should try to find someone who is passionate about your business and its success. Choose someone who will go the extra mile to keep customers happy and pay attention to your business’ finances like they were their own. It’s much easier to create the culture you want for your business in-house than it is with a freelancer – but it might be a bit more expensive, too. 

Cost

Of course after weighing the pros and cons, the bottom line will probably be the over-riding factor. In addition to basic salaries for in-house employees, business owners need to account for  additional expenses including  taxes, social security, office space, equipment, and paid time off, to name a few. These costs can be minimized based on the amount of hours you schedule employees to work each week. If you’re concerned with all of the added costs of hiring a full-time employee, starting with some part-time help might be the best way to get your feet wet. If accounting for overhead costs seems overwhelming, and too time consuming, outsourcing certain tasks might be the best way to start. It’s easier to set and control your budget if you’re only paying a specific rate for certain tasks.

Although the decision to outsource or hire involves many factors– and perhaps a few headaches too - it means your business is growing and you should be excited about that. Needing to hire extra help to support your business operations not only means growth for your small business, but growth for your local economy. Now that you’ve had what was hopefully a restful Labor Day weekend, we trust that these tips will help guide you through a busy fall.