How to know when you can afford to hire a new employee

There’s always work to be done. Your employees can’t pay attention to all your customers. You have to do the tasks that you weren’t supposed to do. And you don’t have time to work on more important tasks, like strategy, planning, and marketing.

Is it time to hire a new employee? And can you afford to hire one?

Here’s a simple rule.

First, determine how much will the employee cost you per month. Don’t forget to include all costs, including social security.

Then, every month put that money aside. And do it for 3 consecutive months. That’s like having a new employee on the payroll.

If you can survive without that money, it means you probably can afford to hire.

So go ahead and hire.

Now, determine if you should keep the new employee. If operations improves, and you have more free time to work on important tasks, you should keep him, or her.

If not, dismiss the employee.

And use the money that you put aside, to pay the first 3 months of salary.

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How to know when you can afford to hire a new employee
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