Should You Hire Full or Part-Time Employees as a Small Business Owner?
As a small business owner, you need to wear many hats to operate your business effectively, which is why hiring employees can help balance the workload. However, the decision to hire full-time or part-time employees is one many small business owners face. There are several aspects to consider when deciding, and there isn’t a right or wrong answer. However, there are some questions you should ask yourself first before considering hiring full- or part-time employees, which we have outlined below.
Does your business model warrant someone full-time?
If you run a small business that doesn’t require constant attention throughout the day or your business model doesn’t warrant an additional person devoting several hours to it, there may be better uses of your resources than hiring someone to work 30 or more hours a week. This is because you may pay for downtime during the day when there is limited work for a full-time employee to do. In this case, hiring part-time employees may be a better option. Additionally, you can use a shift system with part-time employees, so they only come in during certain hours, which can help you save on labour costs.
How big of a team do you need?
As a small business owner, finding ways to save and remain on budget is a requirement for many. As you’re building a team, ask yourself whether you need as large of a team as you think you do. Keep in mind the larger the team, the greater the expenditure of resources, as there are more resources to manage, more training to provide, more schedules to coordinate, and more payroll costs to maintain. Therefore, if you can get by with a smaller, more dedicated group of employees committed to your business, it can help prevent hiring more than you need.
However, there may be situations where hiring more employees is the right choice. For example, if your small business is very busy, you could run into the chance of your small group of employees working more than 40 hours a week, which would require paying them overtime, adding to your payroll expenses. Hiring a slightly larger team of part-time employees, for example, can help ensure you evenly split up working hours and not put all the workload on a small group of employees to manage, as this could increase employee turnover because of burnout or poor work-life balance.
Are you looking to take a step back?
If you have invested a significant amount of time into your business, you may have reached a point where you wish to reduce the number of hours you work or want a team to take the reins and run your business when you’re away. If this is the case for you, hiring full-time employees may be a better option over part-time.
Full-time employees may invest more in your business goals since they spend more time with your business. Meanwhile, part-time employees have chosen part-time hours for a reason, whether due to life commitments or having other jobs, so they may have limited hours to dedicate to your small business. Of course, they can still be committed to your business; they just won’t be able to devote as much time as you may need for your business to grow because of their limited availability.
Can you allocate the funds for someone full-time?
Full-time employees require full-time salaries, as working for your small business would be their primary or sole job. Working full-time often requires the business owner to provide healthcare benefits, retirement contributions, and other benefits not always granted to part-time employees. Additionally, full-time employees typically take home a larger paycheck than part-time employees, given their work hours. If you cannot afford to meet the expectations of a full-time employee, hiring part-time can be the better option. Part-time employees do not often require the same level of benefits and may work hourly rather than on a salary, which can be more cost-effective for your small business.
What skillset are you seeking in your employees?
Paying for one or two full-time employees is all your small business may be able to afford right now. While you may get dedicated workers who are committed to your business, you are restricted to their skillset. For example, if you are looking for someone to run your marketing operations and perform customer service duties, finding someone seeking full-time employment who can perform both duties effectively may not be possible. However, hiring someone part-time to handle marketing and another to handle customer relations may be a better choice. Although you will not have them devote full-time hours to your business, they can have a specialized skillset strictly for the operations you want them to perform.
What is the better option?
You know your small business best. If you’re looking for someone to be your “right hand” and devote as much time and attention as you have invested, hiring full-time employees is recommended. However, if you are still unsure about it, hiring part-time to start off may be a better choice (especially financially) to help you determine if their limited hours are enough. Plus, there is always an option to transition part-time employees to full-time, if they are bringing value to your business.
While you build your team of employees, The UPS Store can help with the other important parts of your business with our Small Business Solutions. Whether you need banners and posters to hang in-store, flyers to add around town, or business cards for you and your new team to carry, our printing services can help with all of this and more.