Perhaps you started your business as small venture, but due to hard work (and a little bit of luck) things have snowballed and really started to grow. If this is the case, sooner or later you will need to think about hiring some additional help, and taking on employees can be a sensible option. Having help running different areas of your business means more work can be done, you can take on more clients and make much more profit than working alone. But there are a number of costs you’ll need to consider when it comes to the hiring process. Here’s a rundown of what to expect.
First things first, you’ll need to advertise your job so it’s out there in the world, to be discovered by the right candidates. To get your advert out to the best range of people, chances are you’ll need to pay a job listing site. Monster, Indeed and Gumtree are all options, so this is likely to be the first cost you come up against.
Next comes the interviewing (and preparing for the interview by selecting the best candidates from your options). While this won’t necessarily cost you money, it does take time- and of course as a company owner your time is money. If the job role proves to be popular, you could find yourself spending hours sifting through CVs and cover letters, interviewing, even conducting second or third interviews if needed.
Running background checks is so important when you’re hiring employees, but there are companies you can use to make the process much easier- find out more here. You need to make sure that the person has a legal right to work in the country you’re in, you need to make sure they have the experience and qualifications they claim- and generally that they are who they say they are! If you employ someone illegally as you’ve not checked then it’s you that the blame will fall onto. If they commit fraud on your company and then disappear, you’ve no way to tell who they are if they’ve given false details.
Once you’ve employed the right candidates, the next step will be to train them up. If you’re sending them for third party training then these are costs to factor in, otherwise it will just be your time while you show them the ropes. At the very least, they’ll need to be given health and safety training which you’ll need to purchase the materials for such as a presentation.
Finally, once you find the right candidate, you need to of course pay their wages. Minimum wages often equals minimum effort, and employees leaving every few years to seek better paid jobs. Pay fairly, based on experience and you’re much more likely to retain your workers (and therefore avoid paying all of the above costs again!)