According to USA Today, small business hiring and confidence is increasing rapidly, with job creation at small companies nearly doubling in the six months preceding August 2013. With the economy growing stronger, it’s clear that many small businesses are ready to grow.
Of course, hiring employees does cost money, but in most cases, it’s necessary for company growth. Like most entrepreneurs, you probably have more work than you can handle but limited funds for hiring employees. How can your cash-strapped business get the help it needs without wasting more money than is absolutely necessary?
These 4 cost-saving employee hiring tips will help you get the right people for the job while being as efficient and resourceful as possible.
1. Hire part-time employees—While you might not have the budget to hire full-time employees who work 40 hours a week, you may be able to use part-timers to help get important jobs done without breaking the bank. Hiring part-time employees can be an especially cost-effective choice in light of the passing of the Affordable Care Act since the law requires employers to insure full-time workers. It’s no coincidence that about 77 percent of all new jobs created nationwide in 2013 are part-time jobs. There are many staffing agencies like Accounting Principals that offers recruitment services to hire temporary / contract workers who could fulfill seasonal work demands.
2. Make the right hire the first time—One of the costliest hiring mistakes you can make is to hire the wrong person. You’ll end up paying someone who isn’t the right fit for the job, your company’s productivity will decline (costing you more money), and you’ll have to start the hiring process all over again (also costing you more money). The key is to make the right hire the first time, and while there’s no foolproof way to guarantee this will always happen, there are steps you can take to give yourself the best chance of selecting the right person for the job:
3. Keep your best employees loyal—When you find a great employee, you need to do everything you can to keep that employee happy and loyal. The value a great employee offers to your company is typically far more than you are paying that individual, and the cost of trying to replace a good, productive employee is high. Go above and beyond to keep your employees loyal. Offer opportunities for growth in your company. Provide attractive perks that fit their needs. Talk to them regularly to find out what’s important to them.
4. Don’t hire any employees—Who says you even have to hire employees in the first place? Just because there’s work to be done doesn’t mean you need to bring in an employee. Hiring freelancers can save you tons of money while still ensuring important tasks get done right. In a recent CNN Money article, one small business owner of a clothing company said that he saves $270,000 by hiring freelancers instead of employees. Instead of paying full-time salaries for the various talent needed, you can pay freelancers on a per-project basis for a more cost-effective alternative. And you save by not having to pay the federal payroll tax or for the freelancer’s health insurance.