Hiring Employees

 
 

As a new business owner, one of the first decisions you'll have to face is whether to hire someone to help you. And, of course, there are other related decisions: if you decide you need someone for 40 hours per week, should you hire one full-time employee or two part-timers? And so on.

Warning

Warning

Employee expenses are often the largest single category of operating expenses for a small business, and the costs can make the difference between profitability and going out of business. It is also difficult to hire and fire employees, both psychologically and legally. The small business owner should consider applying "just-in-time inventory" planning to employee usage as well, utilizing part-time employees or single-project contract labor (e.g., from temporary help agencies) to obtain additional help exactly when and for as long as needed.

The way to start figuring out your employee-related costs is to project your staffing needs. When you think about your need for employees, remember to take into account nonworking time, such as vacations, absences, and employee turnover. For example, what happens if you hire one full-time person and he wants to take a vacation? What will your new business do while he's on vacation?

Business Tools

Included among the Business Tools is a projected staffing schedule. This worksheet is an Excel template.

The worksheet is set up to be used for projecting and completing your new business staffing arrangements for a weekly time period. All you have to do is put in your employee names and the hours to be worked and it will show you and your employees at a glance the weekly staffing arrangements. This tool provides an example and a template for a weekly staffing schedule.

Once you've downloaded the worksheet, feel free to modify it to fit your own needs.

For a detailed explanation of employee hiring, including specific steps to take in the hiring process, see our discussion of recruiting and hiring. For some tips about low-cost alternatives to hiring a full-time employee, see our discussion of choosing a staffing method.

 
 
 
  • Your Small Business

    Toolkits

    Printing and Shipping

    Take advantage of the Printing & Shipping Toolkit sponsored by FedEx to help grow your business.

     
  • Your Small Business

    Toolkits

    Purchasing & Inventory

    Take advantage of the Purchasing & Inventory Toolkit sponsored by Sam's Club to help grow your business.

     
  • Your Small Business

    Toolkits

    Online Solutions

    Take advantage of the Online Solutions Toolkit sponsored by IWS to help grow your business.

     
  • Your Small Business

    Toolkits

    Sales and Marketing

    Take advantage of the Sales and Marketing Toolkit to help grow your business.

     
  • Your Small Business

    Toolkits

    For Employers

    Take advantage of the Employer Toolkit to help grow your business.

     
  • Your Small Business

    Toolkits

    Government Contracting

    Take advantage of the Government Contracting Toolkit to help grow your business.

     
  • Your Small Business

    Toolkits

    Start Up

    Take advantage of the Start Up Toolkit to help grow your business.

     
  • Your Small Business

    Toolkits

    Finance

    Take advantage of the Finance Toolkit to help grow your business.

     
  • Your Small Business

    Toolkits

    Insurance

    Take advantage of the InsuranceToolkit to help grow your business.

     

Join Us Today

Joining the U.S. Chamber of Commerce is an easy choice to make and an investment that begins to pay off right away.