Do you know how to determine the true cost of an employee?
So, you think you need to hire a Facebook ad manager. Or an Executive Assistant. Maybe even a Team Manager. Or a thousand other employee roles that small businesses hire.
You know you are sick of doing XYZ yourself, which is why you’re looking to hire the help. But are you really ready to hire? Can you afford to hire a new employee?
There’s a lot more to consider when hiring than the salary or hourly rate you’re going to pay someone. Most of the clients who have come through my doors over the years haven’t taken into account the REAL cost of hiring an employee. I’ve seen savvy business owners get themselves into terrible financial messes because they hired before they were financially prepared.
I’ve seen thriving businesses be turned into cash-eating machines when the owner, trying to grow the business, hired too many people too soon. Staffing is one of the most significant expenses in your business, so when your revenue is growing, it’s easy to go overboard and hire too soon, causing yourself stress and, sometimes, financial ruin.
Before you hire an employee, you have to know if you can afford that team member.
But what does it mean to be able to afford a team member? Well, you have to know what they will cost and how they will impact your business.
It sounds complicated, but it doesn’t have to be!
That’s why I decided to cover the topic “How to Understand the True Cost of an Employee” when I was invited to be interviewed on Jamie Van Cuyk’s Growing Your Team Podcast. I’m on a mission to help small business owners grow and scale their businesses without losing their shirts. Here are just a couple of things you’ll learn when you listen:
- What you need to see in your business financials before you hire a team member.
- The difference between being able to pay a team member and being able to afford a team member.
- The top mistake people make when they add admin positions to their teams.
- In addition to a paycheck and taxes, what else you should add to the cost of hiring an employee.
- How it can cost you less to spend more on your employees.