When Should I Hire?

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Interviewing“When should I hire a new employee?” is a question I get asked often, especially when a business owner is looking at hiring their very first employee.  My answer is that there are really only two reasons to hire an employee:

  1. They do work that directly adds to your bottom line.  They sell or manufacture a product or service.
  2. They make the owner’s job easier—especially if their work allows the owner to concentrate on increasing sales and profits while delivering a quality product or service (see our blog on what the business owner should be spending 80% of their time on http://bit.ly/MSa5v4).

If you’re an employer, you should review every employee at least once a year to make sure they are doing work that fits in one of the two categories above.  If not, why are they still working for you?  A small business just can’t carry any dead weight.

If you’re an employee:  Are you doing work that is important to your boss?  If not, don’t be surprised when you no longer have a job when times get tough and the business owner has to cut back.

Until next time, thank you for your continued support and let’s make this year our most profitable year ever!

Like any good CPA, I need to add a disclaimer.  Unfortunately, it is impossible to offer comprehensive tax info over the Internet, no matter how well-researched or written.  And remember, I love my readers, but having me bookmarked on your computer doesn’t make you a client.   Before relying on any information given on this site, contact a tax professional to discuss your particular situation.