With various businesses hiring less individuals or putting a hiring freeze in place, the question for small business owners is should they hire less or more. Are small business owners the question of can I do it myself for less may be the deciding factor. However, there are several other factors that should be considered overall. Small businesses have a much different makeup than a standardized larger business. Therefore, certain aspects that affect a large business may not impact a small business at all. The following are a few considerations to take into account if you are a small business owner considering hiring less people or more people or not hiring at all.
The Healthcare Reform Act requires that most businesses offer health care insurance to their employees. This is been a huge deciding factor for small business owners in the hiring process. For example, a small business owner may find that hiring more employees means that they will have to cover the health care cost which dips into the operation of the business and could very well lead to bankruptcy or downfall of the business of a whole.
This leads to several considerations regarding the legalities of hiring a freelancer and the contractor, outsourcing small amount of work or just simply putting a hiring freeze on. If a small business is considering hiring less or more based on healthcare reform that is being put into place, they should first find out the legalities that they are under as a small business in offering health care to their employees or to freelance contractors. It has been a blurred line as to whether or not a small business is even under the same healthcare reform guidelines of the act or if as a small business owner with less than 10 employees if they will have to pay all.
Cutting costs for small businesses is a huge factor that needs to be taken into consideration. Small businesses already have a problem of possibly not making it past the first year. With the economy on a downward spiral, depending on what the small business is will greatly depend on the success rate of that business. By being able to keep cost down a business may be able to last through the tougher times and it would come out profitable at the end.
If cutting costs means only having a few employees and putting a hiring freeze on, then the question of should a small business hire less or more becomes clear. The actual question in this case would come down to what the most cost-effective option for that small business is. If more production can happen and more clients can be taken on then by all means hiring more would be the best answer for small business. However, if the business is in a particular category or niche where hiring more individuals would not lead to more clients and would lead to more out-of-pocket expense, then the option to hire more is also clear.
Overall, the determination of whether a small business should hire more or less individuals depends greatly on their own production and niche the businesses end. If for example, the business is in a niche where more individuals will mean more clients, more production and more income than hiring is a no-brainer. It is all up to the business owner, the niche and what hiring more or less would do overall for the company.