Small business owners are famous for their can-do attitudes and do-it-yourself spirits. But even entrepreneurs need help sometimes. Hiring full-time employees can be expensive, however, when you consider the taxes, benefits and insurance costs on top of salaries.
Consider alternatives — such as temps — to get all the benefits of full-time help, without all the costs. It's time to hire help when:
Determine your needs
Before hiring anyone, you must identify your exact needs. Evaluate your goals and resources to decide whether or not existing staff can accomplish a job. Do you want to hire a temp directly yourself, or work through a temp agency?
I recommend: Get started by reviewing the
"Temporary help checklist" from the
CCH Business Owner's Toolkit.
Identify costs
Temps in many cases will be cheaper than full-time hires — but if you work through a temp agency, there will be additional costs. Research the costs of hiring extra help, and remember the benefits you'll incur.
I recommend: Compare temp rates with the average salary of a comparable full-time hire. Salary.com's
Salary Wizard offers a good means of comparison.
Locate a temp agency in your area online
Locate temps by acting on referrals, placing job ads online or in the newspaper, or by working with a temporary employment agency.
I recommend: Locate a temp agency at the
American Staffing Association's (ASA)
member database, where you can search for staffing agencies by location, skills and services offered.
Interview candidates
Interview temps just as you would permanent employees. Check references and employment history to make sure a candidate is not only qualified, but a good fit in terms of personality and character. One advantage to working through an agency is that they do this for you.
I recommend: Learn to give successful interviews with tips from the
U.S. Small Business Administration (SBA).
Comply with tax and employment laws that apply to temps
Be cautious when contracting temporary employees; pay attention to a temp's legal status and make sure they aren't eligible for the same benefits you give your permanent employees.
I recommend: Are your temps employees or contractors? Find out what the
Internal Revenue Service (IRS) says they are.