Do you need more help in your growing small business? That’s a nice problem to have. If you’re considering hiring someone to handle some of your workload, the first step is considering what kind of hire will fit best with your needs. Your options aren’t limited to full-time, permanent employees. Here are some possibilities and the pros and cons of each.
Permanent, full-time workers
Pros: Permanent employees tend to be more loyal because they typically receive benefits and perceive their jobs as having more opportunities for advancement. Time and money spent in training this type of employee in your processes and systems is typically well spent since they’ll be around for the long haul.
Cons: If you want to compete with bigger companies for permanent, full-time workers, you will need to offer benefits such as health insurance, 401(k) plans and paid time off. The cost of benefits can add as much as 20 to 30 percent to a worker’s salary, making full-time employees expensive.
Pros: Part-time workers can be a great solution if you don’t need or can’t afford a full-time employee. Because many part-time workers only want to work nights or weekend hours, they can enable you to fill time slots that traditional 9-to-5 employees don’t want. You typically won’t need to offer benefits, either, further saving on costs.
Cons: Because they often have busy schedules outside work (that’s why they want to work part-time), some part-time workers can be unreliable. They may lack the dedication and skills you need.
Pros: Temporary workers are a good option to handle busy seasons in your company without having to staff up or down. You can get temporary workers on board quickly, and you don’t have to deal with payroll or legal issues—the temporary agency handles all that.
Cons: It still takes time to get temporary workers up to speed on your company’s systems and procedures, and they typically won’t be as committed as actual employees.
Pros: By using outside contractors to handle projects in your business, you can gain access to very skilled workers without having to pay benefits or invest in training. As with temporary workers, you can use contractors to staff up or down as needed quickly.
Cons: “Independent” contractors means just that—you can’t control how the contractors work, and if they get a bigger project, they may put yours on the back burner. An unreliable or unresponsive contractor can leave you in the lurch.
None of these options is inherently better or worse than the other—it’s simply a matter of weighing the pros and cons for your specific situation and needs.
Image by Flickr user StockMonkeys.com (Creative Commons)