You’re running your own business, and you’re busier than ever. You don’t want to turn work away, but you’re already spread too thin. So you’ve started to wonder: Is it time to hire your first employee?
Becoming an employer is a big decision. You don’t want to hire staff unless it’s absolutely necessary. But if you’re too swamped to keep up, your work will suffer, and you’ll lose the solid customer base you’ve worked so hard to build.
How to know when it’s time to hire.
Becoming a boss is a great idea if your business has grown enough to justify it. Make sure you’re hiring someone for the right reasons. Continue reading
According to Julie Tappero of West Sound Workforce, 4.1 million more workers in the U.S. will become eligible for overtime pay as of December 1, according to the Department of Labor. Of those, 76,000 workers will be in the state of Washington.
It’s estimated that this change will result in an extra $1.2 billion a year in earnings for workers. The reason for this is that the salary threshold for overtime exemption under the Fair Labor Standards Act (FLSA) is more than doubling, from $455 a week to $913 per week. This change will affect almost every business in the country.
Read more at the Kitsap Peninsula Business Journal website.
If you’re thinking about hiring your first employee, you may be feeling so thinly stretched that you want to fill out paperwork and have someone start right away. That’s understandable, since adding staff to your small business can increase your ability to serve your customers. But if you’re not experienced at hiring and managing employees, it’s easy to make mistakes that can make it harder to serve as a consistent, fair boss.
Before you place your first classified ad for an employee, here’s what you’ll want to consider about the employer-employee relationship you’re about to embark on.
by Joseph G. Hadzima Jr.
Employment costs fall into several broad categories:
Finding technically qualified people who can function effectively in a rapidly growing start up venture is not easy task. In an earlier column we discussed the economic alternatives for head hunting. For this column it suffices for me to remind you to be sure to devote the time to make sure that your hires are as close to perfect “10s” as possible. Anything less will be a drag on your business.
Basic salaries vary all over the place depending on the industry and a variety of other factors. There are data that can help you calibrate an appropriate base salary. For example, the Massachusetts Software Council puts out an annual Compensation Survey and there are similar publications in other industries. Be sure to establish rational salary ranges given your growth plans. This means that in most cases there should not be great salary differentials between early hires and later employees- any “risk component” of being an early hire should be made up in the equity compensation component. Continue reading