The decision to hire new employees is not one that many business owners take lightly. Determining the return on investment can be tricky and sometimes questionable. The biggest question in a small business is “How much can I afford to pay?” In this economic time when more and more people are moving to Alberta looking for work, this might be the right time to hire. Considering that the unemployment rates in both Edmonton and Calgary are above 5% which is considered to be balanced, the wages and benefits are not as hot for negotiation as they were in 2008. Alberta still has the highest weekly average earnings of all other provinces, so don’t get me wrong wages are still very competitive.
Consider these questions when making your decision. What are your reasons for hiring? Do you need more time to market your business or develop more products? Do you feel that you need to provide your clients with quicker or stronger service levels? What is your time worth and is there something better suited for an employee to take over? For the past four years, I have completed most of the accounting and marketing functions for my business. This took a significant amount of my time, which would have been better spent recruiting candidates and working with clients on their hiring needs. I have recently hired the people required to complete those tasks and they can do them so much better and faster than I ever could. This has made me realize how much time I have wasted working in the business, when I could have been building the business.
In a previous blog we talked about the different types of employees you could hire. Full-time, part-time, job share and temporary all offer you different levels of commitment to the payroll budget. Determining what you require will allow you to choose your next step. I am regularly hearing employers say that their employees are not engaged. This is a good sign that they may be overworked, not feeling valued and ready for a change. If you feel that the timing may be right, look at your options. Not all hires need to be for permanent full time positions. From time to time, a short term or even long term temporary employee may be all you need to catch up on things, which can also be easier on the bank account.