When it comes to running a business, hiring employees is an important step towards growth and success. However, many business owners underestimate the true cost of hiring employees, particularly the less obvious costs that can have a major impact on the bottom line. In this article, we’ll explore why it’s important to factor in these costs and how doing so can help you sustainably grow your business.
The Obvious Costs of Hiring Employees
Let’s start with the obvious costs of hiring employees. When you hire someone, you have to pay them a salary and make sure it meets the minimum wage requirements. Additionally, you have to pay employer’s national insurance on that salary and might even have to provide a pension. These are all necessary expenses that any business owner should factor in when hiring employees.
The Less Obvious Costs of Hiring Employees
But what about the less obvious costs of hiring employees? When you bring someone into your business, there’s no guarantee that they will work out. Businesses are complex entities with their own unique cultures, and finding the right fit can be challenging. Even if someone interviews well and passes a probationary period, they might not be a good cultural fit or have personal circumstances that prevent them from continuing in the role.
This is where the less obvious costs of hiring employees come into play. If you hire someone, you have a 50/50 chance of that person working out in your business. Depending on the role, that chance might be higher or lower. But regardless, there’s always a risk that the employment won’t work out. And if it doesn’t, you’re back to square one with your objectives and plans.
The Solution: Hire Two People
So what’s the solution? If you need one person in a role, you should consider hiring two people. Why? Because if you have a 50/50 chance of someone working out, hiring two people gives you a much higher chance of success. If one person doesn’t work out, you have another person who can step in and take their place.
This might seem like a significant investment, but it’s worth it in the long run. When you factor in the cost of failure and the impact it can have on your business, hiring two people becomes a smart move. Additionally, having two good employees in your business is never a bad thing. You’ll always find something for the other person to do, and it might be that the next stage of your growth requires that person.
Hiring employees is a necessary step towards growing your business, but it’s important to factor in all the costs, including the less obvious ones. By hiring two people instead of one, you increase your chances of success and reduce the risk of failure. It might seem like a significant investment, but it’s worth it in the long run. So the next time you’re looking to hire someone, make sure you factor in all the costs and consider hiring two people instead of one.