The New Year has just begun and already you have more demand than you expected. The question now is whether you can sustain it. If you can, perhaps it’s time to hire more staff. If you’re not sure, maybe paying for overtime is a better option to consider. Whatever situation you’re in, here are some ways to tell which move is the right one to make:
Calculate the fixed costs.
If you’re planning to hire on a full-time basis, make sure you know the costs ahead of time. This includes far more than simply salary. You also need to crunch the numbers for benefits, vacation time, perks and bonuses, taxes, retirement plans and any other cost associated with full-time employees. Once you know the numbers, you’ll have a much more accurate sense of whether you can really afford to hire full-time staff.
Calculate overtime costs.
Likewise, it’s important to understand your overtime costs before you make any decisions. Some companies try to avoid paying overtime at all costs. But if you’re simply in a busy season that’s going to settle down in few months, this can be the option that makes the most business and economic sense for you. So calculate the hourly wage, overtime rate and taxes and any retirement matches, so you know the exact number you could potentially be dealing with.
Consider temporary help.
One way to get the best of both worlds is to hire on a temporary basis. This is often less expensive than paying overtime, especially since you don’t have to pay taxes, benefits or other employment-related costs. At the same time, you’ll get the extra manpower you need for as long as you need it, whether it’s a couple weeks or a couple months.
After the engagement, you’ll have a better sense of whether overtime is the right solution or if you really do need to hire on a full-time basis. On top of that, you’ll have a team of temporary workers to choose from who are already trained and ready to hit the ground running.
Interested in learning more about how temporary hiring agencies can benefit your company?
Contact Future Force. As one of the leading local temporary hiring agencies, we’ve got highly skilled, pre-qualified candidates ready to go to work for you!