Small businesses with limited time and resources need to be smart about recruiting new talent and make each new hire count. One of the first steps is to evaluate the business's hiring needs.
Small business owners getting ready to hire an employee for a new position should ask these three questions.
1. What Role Will They Fill?
First, clearly define the job description. What work needs to be done? What skills are needed to accomplish the work?
As you post the job and interview candidates, having a clear job description will help you hire the best candidate for the position.
2. How Much Help Do We Need?
Consider how much time you need from an employee. Do you need full-time or part-time? Would a contractor or consultant be a good option? What about an intern?
3. How Much Can We Afford?
Many small business owners worry about the cost of hiring and the return on investment. As with every investment, consider:
Monthly cash flow (can you make payroll regularly?)
Monthly profit (have you been generating enough income to support a new hire?)
Expected additional revenue (how much additional revenue will a new hire generate?)
Estimated payroll costs (how much will you pay the new hire?)
Estimated monthly taxes and benefits (will you offer benefits?)
Additional overhead costs (ex: extra rent, technology, energy expenses)
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