CHOOSING to bring someone new onto the team is always an exciting time, and it can signify a new chapter of the business. You could be adding a new expertise to your services, or you could just be expanding an existing team to help deliver even more for your most valued customers. Here are some of the cost considerations you will need to bear in mind when expanding your team.
Wages
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One of the first considerations, when you’re thinking about expanding your workforce is sure to be the costs involved. You need to be able to pay the wages of the employee in question, and will also need to pay all the added bonuses that come with employing someone, such as their pension pot.
The level of expertise the new hire will have will often dictate how much you need to pay them. For example, if you need to bring in some middle management for the first time in your business’s history, they will obviously need a pay that reflects this. They will have a proven background in business, and will have experience that helps to reward them for the job they are about to do. This is very different from the pay you could expect to give to an apprentice or a graduate, and it is something to bear in mind when preparing to expand your team.
Uniform and Tools
If your team uses a uniform and has their own tools, this could be in part funded by you. Either you could provide them outright, or you could provide your own small grant that will allow them to get their hands on what they need. Obviously, this will change a lot depending on what type of business you have. If you own a small cafe, you may just have to order in an apron for the new team member, allowing them to wear whatever they like underneath so long as it meets health and safety regulations.
However, something a little more complex, such as a business that offers a service might require more. For example, if you are in charge of a group of electricians, there may be a uniform that you want your team to wear. On top of this, you might want to provide them with their own tools so you can be certain they are using ones of the highest quality. These are just some of the small markers you may want to use to ensure that your employees are decked out with the best equipment possible.
Insurance and Cover
When you take on a new employee, you need to make sure that the structure of your business is all ready to accept the new person. This includes making sure that your business is correctly covered. If this is your first employee, you are going to need to make sure that you have employer’s liability insurance in place, as this will protect both you and your employees. If you are taking on additional employees, you may have to update the terms of your policy to include them.
You may also have to take out individual policies depending on the nature of your business. For example, if your employee is going to be working for you as a delivery driver in any capacity, you need to take out some goods in transit insurance too. Check out Quotezone’s tool for insurance to find the best possible policy to cover everyone in the business. Insurance is a fundamental part of any business, and you need to make sure that you are always adequately covered, no matter what industry you happen to be.
Recruitment
It can cost more money than you might think to hire someone. If you are using a professional recruiter, you will obviously need to pay the fees for their time and services. However, you may also have to pay to place job adverts on sites or with certain bodies. You also need to factor in some minimal losses that might occur from you taking time away from your actual role for recruitment.
Though it can have a positive outcome in the end, recruitment is an expensive process. Never underestimate what it might take for you to find your perfect candidate.
Choosing to expand your business by bringing on a new employee will require careful planning, sharp thinking and sensible budgeting. With some careful planning and assessment of available funds, you should be able to expand your team quickly and successfully without encountering any significant losses. Always remember that there are some cost considerations that are needed when undergoing any sort of change in your business. However, you should hopefully be able to pull everything off without even the slightest hitch.
