When is it time to hire a new employee?




 

This article is part of a larger collection titled
The MDRT Hiring Guide.

Section 1: Hiring and retaining talent

Section 2: Employee compensation and motivation

Section 3: Employee processes/managing employees

There are a few crucial times when you should be thinking about adding to your staff. Consider the following scenarios:

When you’re expanding your business. As your business expands, your staff must expand with it to ensure the work is completed efficiently. Otherwise, you might have to pitch in where your time is not well-spent. A rule of thumb that has worked for me is to have one employee with every $250,000 my business earns in commissions. Each year, when you are mapping out your annual business plan, take expansion into consideration.

Fill the gaps. When someone leaves or retires, there is an obvious gap to fill with a new hire. Sometimes, gaps are present for less-obvious reasons. If you notice tasks or areas of responsibility that aren’t well-cov­ered, consider hiring another person to handle them.

Quality of service. To keep your clients happy and generate new clients, you must provide excellent service. If the quality of service within your business is deteriorating, consider whether it’s because your current employees have too much on their plate. Hiring additional help can cause everyone’s quality of work to improve.