Securing Your Financial Health - Make Good Hiring Choices

Securing Your Financial Health - Make Good Hiring Choices

Dr. Linda Hancock

ABOUT THE AUTHOR

Dr. Hancock has written a regular weekly column entitled “All Psyched Up” for newspapers in two Canadian provinces for more than a dozen years. Over the years, her readers and clients have said that they have benefited from her common-sense solutions, wisdom, and sense of humour. Dr. Linda Hancock, the author of “Life is An Adventure…every step of the way” and “Open for Business Success” is a Registered Psychologist who has a private practice in Medicine Hat. She can be reached at 403-529-6877 or through email office@drlindahancock.com

Published

October 4 2009

When you work hard, you expect to enjoy the profits of your business. One of your largest expenses can be in the form of staffing. Profits can quickly disappear into salaries and benefits if you aren't careful.

SALARIED EMPLOYEES: If you hire full-time employees, you will not only be required to pay the wages and benefits that you promise but will also likely face the employer share of government programs for each of your staff members. Also, you will be paying salaries for employees who are on holidays or sick leave, When you are away from the office, even if you are not able to bill your hours, you will be paying these employees. The advantage of having salaried employees is that you are guaranteed that they will be available for you during the hours you specified for the job. Loyalty also can also be established when your staff members believe that they have security in their employment.

HOURLY EMPLOYEES: When you do not require full-time help, you might consider hiring individuals who can work for you either on scheduled hours, flexible hours or on a casual basis. It is always a good idea to know what tasks need to be done, how long it will take to accomplish them and then be clear with the person you hire regarding this. The disadvantage of this system is that some people require full-time wages, and you might be ONE of their employers. If this is the case, your needs may not get priority. The advantage of hiring part-time or casual employees, of course is that your costs can be controlled. You likely will not offer benefits and can choose the number of hours that you can afford.

CONTRACTS: There are times that you might decide to sign a contract with a person or organization to complete a project for you. Setting up a computer system, creating a marketing plan or performing accounting services might be best done through contracted services. Ensure that you are clear about what you need, obtain a quote and set a date for evaluation before you sign the contract to ensure that you get what you need for the best possible price. Make sure you negotiate when and how the contract will be paid. (And remember to negotiate. Just because someone gives you a quote doesn't mean that you have to accept it!).

Before you can hire anyone to work for you, you must be very clear about what you need and what you expect. Otherwise, you will likely be trusting someone to read your mind - and that can be costly!