The True Cost of Not Hiring an Employee
For your small business, you might be debating whether to add a new employee to your team. While making your decision, you’re probably factoring in the expense of that employee. Are you also factoring in the cost of not hiring an employee when making your decision?
Yes, having employees is expensive. For many businesses, employees can be the biggest expense. Because of this, you might try to hold out on adding your first or any additional employee to your teams as long as possible.
However, doing so could be a mistake due to the cost of not hiring an employee when needed. When your business has both a need for additional help and can support that employee, the cost of not hiring can outweigh the expense of the new team members.
Here are three ways not hiring at the right time can hurt your company’s bottom line.
You cannot expand
When you reach capacity within your business, you cannot take on more clients, do more for current clients, or get your products in more locations. You become limited in your reach and your potential because more cannot be done.
Each no you are giving to additional work is costing you revenue. The revenue you are losing could end up being more than the cost of hiring the right help to assist with the increased workload.
When you add the right staff at the right time, you have the potential to keep expanding your business.
Is it Time To Hire An Employee for your small business?
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You lose customers
Customers expect excellent customer service. When you are not able to give them the levels they want, chances become high that they will take their business elsewhere.
Adding the right team members can help you keep customers happy by answering phone calls, responding to emails, providing services to clients, or creating products.
The saying It costs less to keep a client than to acquire a new one is very accurate in business. Therefore, being able to keep your customers happy and spending money with you can far outweigh the cost of the employee you need to add to help with customer service.
You spend time instead of money
There are two types of work that you will complete within your business. Revenue-generating work and non-revenue-generating work. While both need to be done, it’s essential to have the right people completing all tasks.
Each hour not being spent on revenue-generating work is an hour that is costing your company potential revenue. Also, the extra time you take to complete tasks that are not your expertise when someone else can complete the work in a fraction of the time could be impacting your bottom line significantly.
While you are not writing checks for money to go out, you are not spending the right amount of time to bring money in. The money you leave on the table because you avoid hiring the team you need can far outweigh the cost.
Stop costing your business because you don’t want to add an expense
Don’t fall in the trap of thinking you can always save money by not adding an employee to your team. The cost of not hiring can be significant.
When added at the right time, employees are an expense that can positively impact the bottom line and the income you pay yourself.