When to Hire an Employee: 4 Telltale Signs That It's Time to Expand Your Team

Expanding your business can feel overwhelming, especially when it comes to deciding when to bring in more help. Recognizing your need for assistance is one thing, but figuring out the right time to hire an employee can be tricky. In this post, we'll discuss the four signals that indicate when it's the perfect moment to add a new member to your team.

#1 It's time to hire when your business needs are growing faster than your business is. 

The good news is that your business is growing, and people need your service(s). The not-so-good news is that there aren't enough people to handle the growth. When this happens, you might feel grateful for all the new clients, but also overwhelmed and anxious about how to manage it all. 

Now is a good time to review your services and make sure they are as efficient as possible. You should also consider if you need more help to serve more people at once.

Here are some questions to consider:

Are clients waiting longer for your business due to increased demand? Is it difficult to keep track of your clients? Are you saying no to new clients because you don't have enough resources?

#2 It's time to consider hiring when, as the owner, you find yourself overwhelmed.

When you, as the owner, find yourself stretched too thin, it's a sign that it's time to bring in some help. As a CEO, it's easy to get caught up in handling all aspects of the business like accounting, administration, marketing, and human resources. While the "I can do it all" mentality may have worked when your business was new, it's not sustainable or profitable as your business grows. When the time you spend on these additional roles starts to outweigh your time as the CEO, it's worth considering hiring.

Here are some questions to consider:

Are you stuck in the details of a specific area that could benefit from an expert? Is there someone whose expertise can free you up to focus on more important aspects of your business? Are you feeling burnt out from taking on too much?

#3 It's time for you to hire when there is minimal to no time for innovation and strategic thinking

Being able to grow professionally and prioritize innovation is crucial for your business. As your business evolves, it's important to take the time to think about what sets you apart from your competitors. How you position your services. And what value you bring to attract and retain clients. The answers to these questions are constantly changing and require careful consideration. If you find yourself lacking the time to focus on the vision and future of your business, it might be time to consider hiring.

If this resonates with your business, you may hear comments from your clients or team members like: "We've been dealing with this issue for over a month and haven't been able to address it" or "We're doing things the same way, but we need new ideas to improve."

Here are some questions to consider:

Could additional support enhance the quality of your current processes? Is there anything in your business that has been overlooked due to competing priorities? Are you able to delegate tasks to trusted team members to handle high-priority items on your list?

#4 It's time to hire when your business experiences a decline in customer satisfaction or work quality.

Revenue is a key driver for your presence. As a service-based business, customer satisfaction fuels your revenue. This is why it's crucial to understand how customers perceive your offerings. If you or your team are rushing to complete a service in a limited time at the expense of quality, it may be time to hire. Or, if negative feedback regarding service quality or subpar ratings arises, it may be an indication that it's time to hire.

If you're currently facing such challenges, client feedback might sound like this: “The overall process felt rushed”, “I was never able to speak with someone or get in contact with anyone for a question”, or “The service I received had errors or was halfway done”. 

Here are some questions to consider:

Has the quality of work you’ve been producing for clients met your personal and professional standards? Are your customers experiencing less quality from your business due to lack of time or availability?

Is It Time to Expand Your Team? Key Indicators and Considerations for Business Growth

In conclusion, recognizing when to expand your team is a critical aspect of business growth. Whether it's a consistent work overload. An inability to focus on core business tasks. Unaddressed areas in your business. Or a decline in customer satisfaction, these are all clear indications that it may be time to hire. Take the time to evaluate your current situation, asking the right questions to ensure you're making a decision that aligns with your business goals. Remember, an investment in a skilled team is an investment in the long-term success of your business.

If you’re ready to expand your team and want HR experts to take it off your plate, book our Hiring Prep & Recruiting service. We handle everything from job postings to interviews to extending the offer on your behalf, so you don’t have to worry about a thing. Sign up for our Hiring Prep & Recruiting Service here!