Taking on new employees can be a scary decision for many small businesses. There’s a sense of responsibility that comes with committing to pay someone on a regular basis and the worry that your business might not grow enough to support another team member.

And yes, there is no doubt that taking on a new employee is a balancing act. If you hire someone before they are needed, your profitability can take a hit. But on the flip side, if you don’t add a team member soon enough, how will your business grow?

 

Here’s some of our tips for taking the leap of faith to hire new team members so that your business can reach new heights.

When to hire new team members

It can be hard to know when it is the right time to hire a new team member. But ultimately, it all comes down to planning. If you have a plan for your business and the growth goals you want to achieve, that will help you to determine what resources you need to achieve that growth.

The immediate trigger for hiring a new employee is freeing up your own time as the business owner to retain your focus on high-level strategic decisions. For many businesses, including my own, a first hire is often a bookkeeper. This allows someone else to take on responsibility for day to day administrative tasks like invoicing and chasing bill payments, so that you can focus on reviewing the big picture and dedicating time to revenue-generating action.

By getting the right people on the bus – in the right seats (i.e. in the job roles that best suit their skills and experience) – you can concentrate on driving towards your ultimate destination. If you don’t know what that destination is, you need to take some time to plan and set goals for your business!

Don’t forget training

The other vital element in hiring employees is making sure that they have appropriate training. Just because somebody has experience in similar businesses doesn’t mean that you should leave them to sink or swim.

There are three key elements to any employee training program:

1. Induction Training: This includes practical training on your businesses systems and processes. It should also cover background on the business and any HR policies. For example, how do you answer the phone or greet customers? What is the procedure for taking an order? Induction training should cover all the basic elements that will allow a new employee to have the best possible start.
2. On-the-Job Training: Ideally, this is buddying up with another team member to explain any processes and procedures in more detail. In a café, this might mean watching the buddy serve a customer, then serving the next customer under supervision. Or in an office environment, this could take the shape of shadowing the buddy on a customer call.
3. Ongoing Training: Providing ongoing training in a variety of areas to build the skills of employees helps to keep your team engaged and interested. Many businesses are reluctant to train people due to the fear that they will take their new skills and leave for a better job, but ongoing training has been demonstrated to improve employee retention. Besides, what’s the alternative – you don’t train employees and they stay? Do you really want unskilled staff? Provide training in the areas of personal development, leadership, specific skills like selling and customer service, or any other areas that are relevant to your business.

Are you wanting to expand your team but don’t know if your business is ready? Or have you delayed hiring and felt your business struggle to cope as a result? We’d love to speak about how we could help your business to improve its performance. Call Bx on 1300 068 229 or find out about our Business for Life Program.