The following outline identifies issues small businesses may deal with on staffing:
1. Should the business hire permanent staff or contract help?
Staffs usually provide more continuity and stability but add to cost due to employment taxes and perhaps benefit programs.
Staffs provide the advantage of employee loyalty and an edge in a more positive morale and productivity.
Contract people can be terminated at any time negating the costs of severance programs.
Contracting can add flexibility by allowing the adding or deleting of staff as demand requires.
Compatibility is sometimes harder to than competence so staff can be more productive within a group or department.
Hire a contract person as a temp. If the person works out you can make the job permanent.
2. Should business promote from within or add new employees.
Promoting from within does enhance employee morale and loyalty to the company. Employees who see the company as interested in career development and loyal to staff tend to make a greater effort in supporting company goals and success.
Introducing new employees from the outside does provide a fresh approach to some positions and can re-energize the company. Also, securing new outside talent may reduce the cost of training and development of current staff.
3. Full time vs part time staffing
Businesses should be careful not to add staff too soon. Temp or part time staff can be used as the business grows and changes to permanent positions can be made as the business matures.
If the business has seasonal peaks and valleys, use of part time staff provides the flexibility to adjust to demand.
In some situations, job sharing can provide the opportunity to maintain a larger pool of employees who are familiar with the work but prefer to work part-time.
Let growth, profitability, and demand dictate when to expand permanent staff.
I hope these ideas provide a little insight into options for staffing as the organization grows.
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