Business

What should you pay attention to when hiring staff?

Staffing companies now have a go to source for business funding needs. Porter Capital specializes in funding and providing capital to staffing agencies with lines from $10K to $15M. The funding lines depend on the current business model and client base. Porter Capital has been in business over 30 years and was recently voted one of the best factoring companies in the nation.
This means staffing agencies can trust and rely on quick funding lines from Porter.
More and more entrepreneurs are opting to employ staff. This can be a difficult tradeoff. You have often chosen to start as a sole proprietorship and you never really wanted to work with staff again. The company is now growing so fast that you can use extra strength. In addition, it can also influence the growth of the company. After all, developments in the market are not standing still. You yourself do not have all the knowledge you need to bring in enough customers. Thanks to professional staff, your company can grow further, new opportunities arise to grow the customer base. Still, there are a number of things to consider when hiring staff. We will list it for you.

Is it profitable to hire staff?

First, you will have to list all the advantages and disadvantages of extra staff members. Starting entrepreneurs often do not have sufficient financial scope to call in extra employees. After all, staff costs quite a bit of money. You are also responsible for a number of extra additional costs. For example, every staff member has a number of rights, which are determined by law. Think not only of the minimum wage, but also of the financing for occupational risks and the payment of payroll taxes.

If a staff member falls ill, you as an employer are obliged to continue to pay this for at least two years. This means there can be no more room to hire someone else. In addition, you run the risk that the company is doing less well than expected. In that case, you will eventually also run into problems privately. You remain responsible for the continued payment of the salary, even if your company goes bankrupt.

Check carefully whether hiring staff can positively influence the growth of the company. If this is the case, it is almost always profitable to hire a new employee. A company cannot grow without the necessary investments that are the science that you as an entrepreneur always have to deal with.

Severance pay

Of course you never want to think about it, but it can also happen that some employees have to be fired. In that case you often have to deal with a transition payment, this is determined by law. Today, dismissal law is very different from what it used to be. It is often easier for an employer to fire someone and it also costs less.

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In some cases, however, you still have to pay a hefty sum if you fire someone. When calculating the transition allowance, you should think of 1/3 monthly salary per year of service. This is even higher if a person has been employed for more than 10 years. A transition allowance is used as compensation in the event of dismissal. This makes it easier for the staff member to look for a new job. If you are not aware of the severance payment, you may be underpaying. This allows staff members to take a strong stand if they dispute this. Do not be surprised by unexpected costs and read carefully when it comes to the transition payment.

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