The simple fact you have clicked on this post means a congratulation is in order. You’ve grown your enterprise to a place where you need to employ someone to help you manage the workload. That’s amazing. That’s a testament to you working hard and making your dreams become a reality. However, before you jump into the whole hiring process and start writing job descriptions to put on a bunch of job boards, you might want to take a deep breath first and then work out the true cost of employing someone.
This isn’t to put you off. No way. It is to make sure that you don’t get caught by surprise. It is to help you budget effectively. It is also to help you understand just what goes into hiring someone.
So, without further ado, here are all the costs you need to be prepared to fork out for; costs that go well beyond just their salary:
- The Matter Of Recruitment
If time is money, then one of the major costs involved in all of this is the time you spend looking for the best candidate to fill the role you have going. There is writing the job descriptions, posting them to the different sites and reading through all the applicant responses, most of which will be frustrating and time-wasting because they’re from job hunters sending blanket responses. Of course, the other option is to hire a recruitment firm, which comes with its own costs.
- What About The Benefits
Employee’s don’t just look at what the base salary of a job is anymore. They want to know what other benefits and perks they will be getting, which is why you need to work out what they will cost. We’re talking about things like bonuses, healthcare costs, life insurance, retirement plans, disability coverage and all of these typical job benefits. And that’s without going into the new trend of perks like free fruit and food and drinks, and taking your team on team-building exercises and tickets to special industry events. It all adds up.
- Let’s Not Forget Legalities
The moment you go from solo entrepreneur to employer, you’ve gotta understand that you’re about to shoulder a whole new set of obligations and responsibilities in the eyes of the law. One look at Garrity Insurance and you’ll see there are things like general liability insurance and workers compensation insurance, as well as employment laws to adhere, tax obligations to know about, overtime stipulations and, yes, even rules when it comes to firing employees. Our advice: don’t go it alone on the legal front.
- The Rise Of The Overheads
The last thing you need to think about is how much your overheads will go up with the addition of a new employee. There will be new furniture to supply, new technologies, new software and tools. Then there are the office supplies that mustn’t go unnoticed, and the increase in heating bills and telephone usage and all sorts. We’re not saying the smaller things will be life-changing, but they will need budgeting for.
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