When to Hire in Your Small Business

Although it can be difficult to tell when you need to hire another employee, it is essential for your company's success. CEOs have enough on their plate trying to balance staffing levels with business growth goals whilst sticking to a budget--but knowing when bringing in new staff members is key for success.

An effective hiring process is a key to ensuring that your company has the manpower needed to keep up with demand while also maintaining financial stability. By keeping an eye out for certain telltale signs (that we cover below), you'll know when it's time to add more people to your team.

Employee Burnout

If you've begun to notice that employees are taking more time off or falling ill more frequently, it might be a sign that they're overworked. You can usually tell by speaking with your team and getting a sense of their morale. However, oftentimes workers are hesitant to speak up about being overwhelmed for fear of appearing unable to handle the workload.

If your company is founded on transparency, frequently communicate with your staff to see how they're faring. Oftentimes, even if employees don't confess that they're struggling, a manager's intuition should be enough to check in about their employee's workloads.

Hiring new employees may cost more initially, but it will save you money in the long run because they will be able to handle your business needs properly.

Your Customer Service Isn't Where it Should Be

If you're unsure whether it's time to begin hiring more staff, a key sign is if customer service starts declining. If customers start phoning about missed deadlines or unfinished tasks, then your current team is likely overworked. Without new additions to your staff, your company runs the risk of complications such as a damaged reputation or burnout among employees.

When orders go unfulfilled or are fulfilled late, and when phone calls and emails go unanswered, these are all red flags that customer service is suffering. If you don't address the problem quickly, your customers will become disgruntled and may decide to take their business elsewhere.

The cost of retaining customers is much cheaper than bringing in new ones--anywhere from five to thirty times less. If you have a high churn rate, it not only impacts your business negatively but also gives a false impression that your company is unhealthy. Churn measures customer turnover or loss and nullifies all efforts to increase retention.

You Have to Turn Away New Business

When new business opportunities or large contracts come your way, and you have to turn them down, it may be time to hire more help. Of course, you want to make sure you have a solid business model first. But if you do, hiring employees to tackle new projects can help your organization succeed, even if there are some upfront costs for recruiting and onboarding them.

Although it may be more difficult to find competent help, if you run a seasonal business, you might need extra staff for only a limited time. If this is the case, hiring people on a temporary basis might be the best solution. Just remember that when you do this kind of hiring, there are some legal implications to take into consideration.

You Find Yourself Losing Time

Scrutinize your current situation. Do you frequently finish your workday with a to-do list full of tasks you didn't get to? Are you working from home as often as you're working from your place of business?

If you find that administrative duties are preventing you from focusing on activities that generate revenue or acquire customers, it's a sign that you need more staff to handle tasks such as answering phones and paying bills.

Wouldn't it be better to use your time developing strategies for continuous growth?

Your Most Productive Workers Are Wasting Time On Busywork.

If you or your most valued employees are spending a lot of time doing mundane tasks that could easily be delegated, then it might be time to expand your team. A reliable method to establish if you should bring on a new employee is by evaluating how much different employees' time is worth.

If you're struggling with tasks that would be cheaper for someone else to complete, delegate them immediately to a new employee. It's crucial to remember as a business owner or any high-level employee, being preoccupied with easy-to-delegate tasks; means you're not using your time efficiently on other projects that could help your company expand or progress.

In-House Tasks

When your business is first starting out, it might be more cost-effective to hire an outside company to handle some tasks instead of training staff members. However, you may want to bring these services back in-house as your business expands.

If your business is growing, chances are the tasks you outsource will become more complex over time and end up costing you more than if you had hired in-house employees. When an organization's needs become mission-critical, learning curves are shortened, and dedication to specific processes is increased with in-house employees.

Ensure You Can Afford New Hires

Although it might be tempting to load up your staff in order to complete more work, it is important not to overspend. Only hire new employees when you are able financially to support them. If you increase your team too quickly without seeing a significant uptick in sales, then you can end up facing cash flow problems and having to lay off some of your team members. Make sure you have a business plan before hiring any new staff.

Wrapping Up

Running a small business is like being a jack of all trades. You have to be knowledgeable about every aspect of your operation, and there will come a time when you have to delegate responsibilities to employees.

Although every business has different needs and challenges, some common signs indicate it may be time to expand your team. By being aware of these indicators, you can make sure your business is positioned for continued success. Just remember that it's critical to stay updated with what's happening with your employees. Best wishes!