From Shari Waters,
Your Guide to Retailing.
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As your business begins to grow and evolve, you'll be challenged by the decision to expand. If you are doing all of the work yourself, your first thought may be to hire employees. Before you begin the hiring process, take a moment to determine whether or not you really need the help.

Time Management

Are you doing everything you can to make your time as productive as possible in your store? Becoming better organized may eliminate the need for outside help. If you're having trouble managing your time, sign up for a seminar at your local library or college.

Many retail owners try to wear all the hats and then feel they need to hire help. You can reduce some of the workload by outsourcing any part of your business that would be better served by a professional. Bookkeeping, marketing and information technology are areas that may be outsourced.

Don't expect to have a lot of free time on your hands right away if you hire a new employee. Your new management role will involve a lot of time in the hiring process, the training of the new worker and the additional payroll paperwork. These new responsibilities will require you to have the organizational aspects under control.

Hiring Is Expensive

Can you afford an employee? Hiring an employee is an investment but for each new hire your retail business makes, valuable resources like time, energy and money are dedicated to the effort. Examine your operating budget. Is there room to pay an extra worker? Keep in mind that you'll need to pay at least the minimum hourly wage and you'll also have payroll taxes and workers compensation to pay.

An extra employee may generate enough new sales to more than compensate the salary of the employee. The additional help could give you a chance to produce more products or serve more customers efficiently. If the added business does not outweigh the minimum salary that you would have to pay, then consider other alternatives to hiring a permanent employee. There are many staffing options available and each has some pros and cons.

Staffing Options

Full-time Employees: A person who works a set number of hours and generally receives benefits like health, dental and life insurance along with a standard salary is considered full-time. Having someone around full-time can provide a peace of mind knowing someone is minding the store even when you can't be there. There are also many labor laws which govern the full-time worker.

Part-time Employees: These workers may offer more flexibility in scheduling and cost less than full-time employees, but you may spend extra time in training more people and if they have jobs elsewhere, worker loyalty may be compromised.

Temporary Employees: Staffing agencies usually charge for the convenience of providing full service, as they handle the payroll administration and fringe benefits. However, temporary help may be usefull for the short-term projects such as the busy holiday selling season.

Independent Contractors: Contractors usually provide work on a project-by-project basis where specialized training or certain skills are required. Fees for work performed are paid based on results and negotiated in advance. Be sure to have a written contract in place before hiring independent contractors. You should also be aware of the IRS guidelines which determine a workers independent contractor status.

Once your business becomes successful, you will obviously need help on a temporary or permanent basis. Good employees can be a business's biggest asset but the legal and accounting concerns that come with hiring can almost make it seem having employees is more trouble than it's worth. Be sure you understand all the responsibilities before recruiting and hiring.