It is important for small businesses to seize the opportunity when hiring new employees. If an employer hires someone too early, profits may fall and cash flow may dry up. However, if the employer waits too long to bring in new employees, your commitment may exceed your ability, and unfinished work begins to accumulate. You have to hire new employees when there is enough work that requires additional help and your cashflow situation is stable enough to manage more additional costs of new employees. You should also consider the hidden costs of hiring new employees, including health insurance, training program costs, etc. Hiring new employees before encountering a labor crisis is important, because hiring someone usually takes eight to ten weeks, and properly training them takes longer.
If you are considering recruiting new employees, the first thing to do is to check the financial reports of your business. In particular, check your company’s revenue to see how it changes over time. If your business has been growing steadily for several months, this is a good sign that your current employees are working effectively to drive strong growth. This may indicate that in order to continue to grow, you need to expand your business by hiring new employees.
Next, look at the capabilities of your current employees to assess whether you need to hire more support staff. The best way to understand your employees’ current capabilities is to talk to them directly, or talk to the manager who oversees the employee’s workflow. If employees are unable to accept the new job, or worse, difficult to manage their current workload, it may indicate that your business need to create a new job position to continue growing your business.
In addition to talking to employees to better understand their new job capabilities, you can also analyze data to find clues that employees need to expand. Look at how much overtime your employees work and how this number has changed over the course of a few months. If employees need to work overtime more frequently to handle their workload, this is a good indicator. In the long run, hiring more employees may be more cost-effective. You can also consider employee morale: If overtime causes more burnout and fatigue, hiring new employees can help your business continue to grow in a way that is sustainable for you and your employees.