The Ups and Downs of Taking on Your First Employee
When starting a business, most people will begin working alone as they try to develop the business and grow it into a profitable endeavor. Many business owners will be happy to continue as solo workers, but the dream for many is to grow their entity into a large company with many employees. How will this impact the time and financial cost of the business owner, though?
Bringing on employees for a company may conjure up images for the owner of sitting back and relaxing while the worker bees pick up the more laborious tasks. Of course, having employees does mean that tasks can be delegated differently, but this does not mean that the business owner is without responsibility. This is what you need to know about your responsibilities and what happens when you take on your first employee.
Costs
A business owner will bring on an employee to create a more efficient service or production and make a faster profit in the long term. There are many cost factors that will hinder on profits, though. Not only the employee's wages, but an owner must also consider if they will put in place paid holiday and sick leave, employee discounts, contribution to a 401(k) plan, and taxes.
There are also costs that may be necessary for the efficiency or reputation of the company, such as the cost of uniforms and extra tools or equipment. A business owner may need to consider a new premises if they were previously working from home or in a space that does not allow for additional people.
Regulatory Compliance
An employer must also consider what they are required to do by law. This includes things such as health and safety for their employees but also regulatory compliance regarding declaring the business circumstances to the government and following federal, state, and local rules for administration and taxes. This can be a lot of paperwork, and it is worth considering the advice of professionals during the initial stages.
Employers that do not prioritize their regulatory compliance can find themselves in big trouble early on. It is a huge risk to the business and the owner directly to not follow the strict legislation in place.
Job Satisfaction
A business must also be appealing to employees. If you want to attract the best workers, you must consider what your company offers them in return. More companies are providing financial benefits as well as lifestyle benefits, such as childcare services, giveaways, and flexible hours.
This can promote a happy workplace that creates job satisfaction, more productivity, a lower turnover, and a better company reputation. Regular communication with employees, including asking for feedback, is essential to ensure job satisfaction, keep staff, and make the business appeal as a place to work.
Overall, taking on staff is a big step for a business and should be thoroughly researched and budgeted for in advance before rushing to write job descriptions and place adverts. Thankfully, there is a lot of guidance available online and in the community to support business owners with their decisions, enable them to grow their business, and make it worthwhile to bring on extra help.
Bringing on employees for a company may conjure up images for the owner of sitting back and relaxing while the worker bees pick up the more laborious tasks. Of course, having employees does mean that tasks can be delegated differently, but this does not mean that the business owner is without responsibility. This is what you need to know about your responsibilities and what happens when you take on your first employee.
Costs
A business owner will bring on an employee to create a more efficient service or production and make a faster profit in the long term. There are many cost factors that will hinder on profits, though. Not only the employee's wages, but an owner must also consider if they will put in place paid holiday and sick leave, employee discounts, contribution to a 401(k) plan, and taxes.
There are also costs that may be necessary for the efficiency or reputation of the company, such as the cost of uniforms and extra tools or equipment. A business owner may need to consider a new premises if they were previously working from home or in a space that does not allow for additional people.
Regulatory Compliance
An employer must also consider what they are required to do by law. This includes things such as health and safety for their employees but also regulatory compliance regarding declaring the business circumstances to the government and following federal, state, and local rules for administration and taxes. This can be a lot of paperwork, and it is worth considering the advice of professionals during the initial stages.
Employers that do not prioritize their regulatory compliance can find themselves in big trouble early on. It is a huge risk to the business and the owner directly to not follow the strict legislation in place.
Job Satisfaction
A business must also be appealing to employees. If you want to attract the best workers, you must consider what your company offers them in return. More companies are providing financial benefits as well as lifestyle benefits, such as childcare services, giveaways, and flexible hours.
This can promote a happy workplace that creates job satisfaction, more productivity, a lower turnover, and a better company reputation. Regular communication with employees, including asking for feedback, is essential to ensure job satisfaction, keep staff, and make the business appeal as a place to work.
Overall, taking on staff is a big step for a business and should be thoroughly researched and budgeted for in advance before rushing to write job descriptions and place adverts. Thankfully, there is a lot of guidance available online and in the community to support business owners with their decisions, enable them to grow their business, and make it worthwhile to bring on extra help.
