Hiring A New Employee Hiring a New Employee “A company is only as good as the employees who work for It.” Seems to be the slogan driving most employers in today’s marketplace.
Your employees are a direct reflection of your company and in many industries, may actually be considered the product. Finding the right employee can be one of the most crucial and difficult decisions a business can face. Businesses must be prepared for this process and understand the steps involved in hiring a new employee. When an employer makes the decision to hire a new employee, they must first decide what advantages this employee will offer the company.
The employee may be considered a producer, who would benefit the company by producing, creating, selling or supporting the product. This employee would be responsible for direct profits for the company. He or she may also belong to the coordinator category of employees. These employees are responsible for the productivity of producers by coordinating their tasks with those of other producers to gain the most cost effective solution. It must be determined if the efforts of a coordinator would benefit the producers in a specific company. A new employee may also offer your company the assistant qualities needed to free up the time of a higher paid employee.
An assistant can be very valuable to your company by helping your executives become more efficient. Once the potential gains of a new employee are determined, the costs associated with this new staff member must be reviewed. The expenses of anew employee include salary, taxes, hiring costs, supervision, training and equipment. The employee’s salary, wages and incentives must be taken into consideration. In addition, the company must pay taxes, administration and accounting fees for this person.
The decision maker should take into consideration the hiring costs associated with the employee, including recruiting, advertising, interviewing and selecting a new employee. The cost of supervision of the employee can be calculated using a percentage of the supervisor’s salary based on the projected amount of time the new employee will require from a supervisor. Training costs can also be substantial, consisting of the direct and opportunity costs of other employees who would be involved in training. Equipment such as computers, desks, safety equipment and other technology would also be taken into account. After calculating, reviewing and analyzing the costs and benefits of an employee, several things must still be considered before developing a conclusion. A human resources or management decision maker should compare and analyze the effect this employee would have on your cash flow.
Realistic income projections can be compared to the initial and long-term costs of the employee. The fact that the employee may not be fully productive until several months of work must be calculated into the projections. For example, the person may take time to adjust to the position and handle a full workload, or you may not initially have enough work for the person to be working at full capacity. The deciding parties must consider the relative value and determine if the gain would be more from a new employee as opposed to investing the same time, money, and resources in current employees or procedures.
The decision to hire a new employee is very important to the company as a whole, as well as, the individual making the decision. A poor choice can reflect the personal abilities and may indicate a decision-making weakness to the person’s boss, colleagues, staff and customers. By making the decision to hire the person, they will be responsible for whether or not that person can do the job well and fit in with other members of the staff. When making the decision to hire a new employee, a company should keep in mind the importance of the task, while being sure to consider the potential gain, projected costs, and advantages of the new employee compared to your other choices.