It is true that a single person cannot run a growing business for long by themselves. By bringing on additional human resources to your business, you will experience key benefits, as well as key downsides. The largest benefit is having one or more additional set of hands to share in the work. Measuring these benefits against the downsides is the task of the objective business owner.
Key Benefits of Hiring Employees
Skills that your employees bring to the table can help with make your business more successful. Hiring an additional employee who can act as second-in-command can be pivotal, allowing the business to continue to operate when the owner is called away. A great second-in-command employee can also help the owner to enjoy time away from the business to pursue personal interests or more family time. The owner will be assured that their business is in good hands while they are away. The second-in-command can also provide additional skills that the owner may lack. For example, if the second-in-command is an extremely persuasive person, they may be able to improve upon the sales and marketing efforts of the company. It’s important as the owner to understand your own strengths and weaknesses, so that when hiring you can pursue candidates who can fill in for your areas of lack. It’s also important to take into account different backgrounds and personalities, as often new ideas can emerge when different people work together.
As a business owner it may be more fulfilling for you to work on the more challenging and rewarding parts of your business, and hire a resource who can handle the day-to-day responsibilities. The operations and logistical demands can sometimes overshadow the more creative aspects of entrepreneurship. Some business owners look to solve the problem by hiring an individual specifically to handle the operational and logistical demands, which opens their time to handle other parts of the company. This additional time can be spent designing new products, researching different markets or promoting the business through various media outlets.
Key Downsides of Hiring Employees
In most scenarios of life there will be benefits and drawbacks, and hiring employees is not exempt from this rule. Hiring employees can bring about added expenses to your business in the form of employee wages, insurance premiums and increased taxes. Accompanying the increased expenses is an increased amount of paperwork, which begins with the hiring process. For example, the proper forms must be filed for the business to obtain an Employer Identification Number. In some businesses it is necessary to also file a form that declares the employee has presented documents (i.e. Photo ID, Social Security card, etc.) that verifies their legal status of a valid worker. As the owner you must also keep record of the employees’ wages paid, taxes withheld and hours worked.
Bringing on employees will also require you to be more organized and have more details around your workplace rules and policies. You may also need to develop a document to serve as an employee handbook, with guidelines in it that are easy to comprehend, enforceable and realistic.
You will also want to keep in mind relationships between coworkers. An issue between your employees will ultimately become an issue for you as the owner. Professional and personal issues between coworkers can make for an unpleasant working environment and can even negatively impact the pace and quality of the work. If these types of problems between employees involve illegal treatment, then you as the owner can be held responsible.