Have you ever tried to find out about failed start-ups and inquired about the possible reason behind their catastrophic failure? If you do, more often than not, you will find that the answer doesn’t lie in predictable things, like competition, innovation and other similar blocks. In most cases, the problem lies with financial and startup hiring issues.
Yes, a company, no matter how small or big needs to have the adequate number of employees at its disposal in order to ensure that it has the labor force in place to make the necessary sales to break-even. At the same time, hiring employees recklessly could result in financial problems. Here are 3 things you must ponder upon when you are thinking of hiring employees:
1. The Cost Of Hiring An Employee
One of the biggest hindrances in hiring an employee is the cost factor, not just salaries but the entire process of hiring can be very expensive. All these costs need to be taken into account before you decide whether hiring an employee is economically viable for you or not.
For starters, you must remember that when you hire an employee you will need to pay a number of benefits and bonuses to the employee which is mandated by the law. You will also need to invest a substantial amount of money behind the process of startup hiring which includes Human Resource expenses to stationery costs.
2. The Option Of A Freelancer
One of the first things that you must consider when you are faced with the problem of hiring an employee is whether or not a freelancer could be a better option for your business. A freelancer could be a better financial option than hiring a permanent employee for a number of reasons.
You will not need to pay a freelancer any of the benefits that the law mandates for an employee. You also will be paying the freelancer on the basis of the amount of work he does instead of a fixed salary. Also hiring or firing a freelancer is much easier than an employee.
3. Sustainable Growth
Most companies hire employees in order to grow. It is important that employees are growing the business rather than draining the financial assets of the company. You will also need to identify whether or not your projected growth is sustainable, or not. If yes, hiring a permanent employee could be a good idea. If you think that your growth might not be sustainable, you could be better off using a freelancer.
You can find more information about this topic and other topics related to small business like ecommerce, and tax extension filing at outright.com/blog