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Health & Fitness

Does a Larger Staff Fit into Your Growth Strategy?

About 70% of small-business owners and CEOs surveyed in 2013 said they were expecting stronger sales in 2014, and more than half were planning to hire new workers.1

Given that small businesses account for about 49% of private-sector employment, a higher level of confidence could be good news for the nation’s slowly recovering job market.2

It’s exciting to discover an opportunity to expand the size or scope of your business, but how do you know whether your company is really ready to add new employees? Here’s a closer look at some factors that tend to influence hiring decisions.

  • Customer demand for your company’s goods or services is steadily increasing. It may take some time to confirm that growth is consistent and not a seasonal or temporary surge.
  • You (and/or your staff) can no longer handle critical work in a timely manner, and customer service is suffering.
  • You regularly pay a significant amount of overtime to current employees.
  • You would like to act on attractive growth opportunities, such as opening a new location.
  • A person (or people) with a particular skill set is needed to help develop a new product or add to your menu of services.

Run the Numbers

You may need to invest a fair amount of time and money to build a good team. Additional salary can be substantial by itself, but employers that provide benefits such as health and dental plans, disability coverage, and life insurance may need to factor in additional costs. In June 2013, the average employer cost for each full-time, private-sector worker was $29.11 an hour, with 70.3% devoted to salary and 29.7% to worker benefits (this includes 7.7% for health plans and 8.2% for legal requirements such as Social Security, Medicare, workers’ compensation, and unemployment insurance).3

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There may be additional expenses associated with recruiting and screening applicants, training new workers, purchasing workers’ compensation insurance, and complying with any federal and state regulations that apply to your industry. In fact, you may want to consult an accountant to help determine whether you can afford to hire some extra help.

Our philosophy is to listen, discuss your options, and present solutions. Click here to watch our short video and learn how Ten Haagen Financial Services may be able to help you with your goals and needs.

We welcome your questions and comments. Remember, when planning your financial future, the sooner, the better!

JON TEN HAAGEN, CFP, RPC
Your Investment Portfolio Repairman
Founder and CEO
Ten Haagen Financial Group
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Huntington, NY 11743
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516-658-2827
jonlth@tenhaagen.com
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1) The Wall Street Journal, November 20, 2013
2) The New York Times, August 28, 2013
3) U.S. Department of Labor, 2013

 

The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2014 Emerald Connect, LLC



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