Financial Education

Finance Tips for Startups Hiring Employees

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As an entrepreneur, you probably have a limited pool of resources and capital in launching your startup. Even though this will require you to limit how you initially staff your business, there are certain positions you will have to fill. These tips can be used to ensure you can get the help you need without forcing you to overspend on your operating budget.

Hire Part-Time Employees

You can save on your staffing finances when you create multiple part-time positions instead of fewer full-time openings. This is largely because you won’t have to provide as many employee benefits to part-time employees who only work a few hours a week. Depending on the size of your business or the number of employees you hire, you may not be required to provide health insurance. Even if you pay your part-time employees the same rate of pay as your full-time employees, offering fewer benefits can save you a considerable amount. Additionally, you can ask part-time employees to stay late or work extra hours without having to worry about paying them an overtime rate. As long as each employee works under 40 hours, you can pay them their regular rate of pay.

Outsource Your Administrative Needs

Every business must rely on administrative and clerical services in its daily operations. This includes bookkeeping, IT, human resources, janitorial, and logistics services. While you can hire your own employees to fill these roles, the better option may be to outsource these needs to third-party services. This is especially preferable when you only need to rely on certain services for brief periods at a time. For example, once your computer system and IT infrastructure has been set up, you may only need to rely on your IT personnel when another employee experiences a technical problem. In that case, paying a flat fee for IT services is far less costly than hiring your own IT professionals.

Offer Remote Working Options

You can also save a great deal on your operating expenses by letting your employees work from home whenever it’s possible and efficient. It may require adding new software applications and providing additional hardware, depending on your type of business, but you’ll save on your monthly operating expenses almost immediately. Your facility will use less energy with fewer employees in the office, and you’ll no longer have to provide breaks and paid lunches to your remote workers. While some services will still be required, such as using a paystub generator, there are other services you can either cancel or use less frequently. Even if you just let your employees work remotely part of the time, you’ll see a noticeable drop in operating expenses.

Hire Freelancers

Another option to consider is to hire freelancers to perform skilled services for your business. One way a freelancer might come in handy is in managing your business’ social media accounts. You can hire a freelance writer to create posts for your blog. While you will have to pay the freelancer’s rate, you won’t have to worry about benefits or overtime. Freelancers take care of their own needs for insurance, vacation, and other benefits. Additionally, they offer to do a job regardless of how long it takes, which means you won’t have to pay them a standard hourly rate. This ensures the freelancer will complete the task quickly and efficiently.

Recruit Interns

You can also get free help by recruiting interns to work for you. In exchange for providing the experience they will need to launch their future careers, college students will be willing to participate in unpaid internship programs. You can choose to offer alternative formations of compensation as well. One idea is to offer stock options or bonuses to interns who perform well or meet certain productivity goals. You can contact area universities and colleges to express your interest in offering internships. They can tell you more about what’s involved, including any requirements you would have to meet.

You can use these tips to keep your operational costs low as you launch your startup. Later, after your new business starts to show a steady stream of revenue, you’ll have more resources to use in staffing your business. At that time, you may hire more permanent and full-time employees, or you may still choose to save money with these alternative staffing options.

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