Contributed by Heather Legg
Depending on the size of your company and what you do, there may come a time when you need to hire some help.
This doesn’t seem like a money saver at first, because, well, you have to pay your employees. But whether they are taking on work that you just aren’t qualified (or don’t want) to do, or you are hiring them so you are able to take on more work, this is a way to make your business grow.
The key is to hire them in a financially sound way. Think about what you can do to make it worth it to both you and your new employees.
Among the factors to keep in mind:
1. You could hire part time workers or contract workers.
By hiring part time or contract workers, you are only paying them when they work. Depending on your business, this could be a financially smart move. You don’t have to pay benefits, retirement or health insurance, and you can use them during high work times, either seasonally or by the job.
However, you may not get the consistency, dependability or loyalty you are looking for if you decide to this route.
2. Think about what kind of health plan suits everyone best.
More companies seem to be going towards a high deductible health plan combined with a health saving account instead of a traditional plan with regular co pays. You can find some savings by providing health coverage this way, and you can decide how best to fund the savings account, whether it’s solely your employee’s responsibility or a combination of your funding with theirs.
3. Hire qualified people.
You may think you can hire a less qualified person for less money. Think again. You may end up spending more money training than you would if you just hired someone completely qualified in the first place. Sure, it’s nice to give someone a chance or a new start, but you have to think rationally as a business owner and do what’s best for your business. Hire someone who can jump right in and you’ll benefit right from the start without any extra training or your own time lost.
4. Let your employees work from home.
You can save this way on work space, even down to the new desk and furnishings. As long as you have a place to meet when necessary, you can let your employees work from home and you can end up saving quite a bit. You may have to pay something, like phone bills or office supplies, but it will probably work in your favor as long as it stays convenient to everyone.
5. Skip the recruiter if you can.
If you can hire on your own, you’ll save a hefty chunk of change that would otherwise go to a recruiter. Again, depending on your business and your contacts, this may be easier said than done. And if you’re not sure about the whole process, the cost of a recruiter may end up benefitting you.
All of these are tips that may or may not work in your situation, but it can at least open your eyes to some of the ways to save on employee hiring. It can be done, just use what works best for you.
About the Author
Heather Legg is a freelance writer who covers a variety of small business topics, including finding the best accounting software.