They say every successful business stems from a brilliant idea. You can be sitting with your group of friends, using your wit to whip up concepts, simply for fun banter. You could be having a deep meaningful conversation with a friend about what needs to be. Either way, a moment of eureka can happen anytime. However, as an entrepreneur, is that enough?
You could have a great idea for a business, but the execution of it and the sustenance of your entrepreneurial venture needs much more. It needs strategic planning, financial and human resources, and vision among other things to succeed.
However, as an entrepreneur, when you’re growing, having full-time staff can be wiser than outsourcing work. It can be both scary and exciting to hire your first batch of employees. Here are things you should keep in mind when hiring your first batch of employees as a small business owner.
1) Do you need full-time employees?
Many small business owners end up realising that their employees don’t have much to do or that they cannot afford to have full-time hires. Before employing your first set of employees, ask yourself if you have the need and capability to retain them. Else, you will be wasting your resources and also, giving them a negative experience. You can opt to have people on a contractual basis or as freelancers if the scope of work is limited at the moment.
2) Know which roles are a priority
“Decide roles and responsibilities for which you need to hire your first batch of employees and work out the cost-benefit analysis. Prioritise recruiting employees for roles that are essential to kick start the business,” Sai Bhosale, a chartered accountant and financial advisor advised. If you are a small business owner, you should hire in phases and prioritise the positions you absolutely need to be filled.
3) Consider all costs
Hiring employees come with a variety of costs, and goes beyond just monthly salaries. “Consider costs of recruiting, training, on-boarding, salaries or wages, and other benefits. The cost of workplace integration should not be overlooked. A new desk or chair for the new employee, a laptop/computer, software, mobile phone etc. should be considered,” Bhosale suggested.
4) Don’t settle for bad hires
Your employees are the wheels of your business. If you want your business to grow, it has to move forward on the path of your vision, and not haphazardly in a direction away from productivity. If your hires are bad, it’s time and money wasted, because that investment got you no returns. So consider the cost of employment as an investment. Invest wisely in talent that will help your business grow or don’t hire at all.
5) Focus on employee retention
“Failure to adequately compensate the employees can lead to lack of motivation and reduced productivity. Business owners should try to meet employee expectations to establish a smooth operational business,” Bhosale explained. “Ensure appropriate employee retention strategies are in place to avoid re-incurring recruitment, training, and onboarding costs,” Bhosale concluded.
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