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Hiring Employees: How to Balance Payroll for your Small Business

If you run a small business, then you know it can take a lot of manpower to get the day-to-day activities finished; while still managing finances, marketing efforts, bookkeeping and hiring. In fact, many small business owners cite hiring and employee management as one of the toughest aspects of their job. There is a science to managing labor for your business. Here are a few tips for expanding your staff effectively:

1.            Think about the number of people you already employ

The burden of taking on another employee greatly depends on how many people you already have. If you have three employees, adding another one would be increasing your labor by 33%. Decide if the addition of a new employee is worth the time it takes to train and teach them effectively.

2.            Plan ahead

Plan how much a more increased payroll will cost you overall. How much will it cost you each month? Each year? You should also look at how this will affect your business in terms of meeting the needs of the customer. Will another person or people allow you to perform more efficiently? What kind of work do you have coming in? Does it require more manpower? Thinking about these questions ahead of time is important, and it can prevent future lay-offs that no one enjoys.

3.            Hire ahead

The worst thing that you can do for your company is to try to stretch your labor too thin and then provide customer service that is not up to par. Conversely, the very best thing you can do for your company is deliver exceptional customer service every time. If you are sure that an extra employee or two would significantly increase the level of customer service of your business, that’s probably a good sign to proceed with the hiring.

 4.           Outsource your business process

You may or may not be the best at the numbers that go along with your business. It can be helpful for you to outsource your accounting. An accounting firm will be able to interpret your numbers and compare it to the industry average. Bookkeeping services are readily available; all it takes is quick phone call to identify your options. Many people forget that accountants are there to help you, and really, they care about your business just as much as you do.

5.            Think about your hiring criteria

You want to hire someone who will not only mesh with you, but also the company’s personality and culture. Think about how this new employee will affect your company in the long run. No one enjoys working with someone they don’t get along with, so besides being a qualified individual, make sure they are a good match for your business.

These points should help you hire effectively and efficiently. We know that this part of business can be tough, but right now, there are more qualified individuals out there than ever before. So instead of seeing hiring as an unfavorable task, see it as an exciting venture into a new and improved business.

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