The Pros and Cons of Different Types of Employee Hires for Business Scaling

Scaling a business requires extensive time commitments when it comes to hiring. Leaders must determine how to maintain the company’s innovative spark and tight camaraderie while hiring dozens of new colleagues every month.

To scale a business successfully, it’s crucial to establish systems before they are needed. One way to start the hiring process is by creating a clear job description that includes the job’s duties, goals, requirements, methods, equipment, experience, skills, and traits, as well as salary or payment details.

Before making any hires, it’s essential to consider the different types of employees and the pros and cons of each.

Full-Time Employees:
  • Pros:
    • They are more committed to the business since it’s their full-time job.
    • They have greater availability, so they can work longer hours and have more opportunities for long-term development.
  • Cons:
    • They cost more in terms of salary and benefits (which can add 20-30% on top of the salary).
    • They can lead to legal issues that need to be addressed.
Part-Time Employees:
  • Pros:
    • They cost less because they are typically hourly rather than salaried.
    • They offer more flexibility in scheduling, as they may not expect or want to work traditional business hours.
  • Cons:
    • They are typically less committed to the business, especially if they have other responsibilities.
    • They may not have enough time, dedication, and knowledge to fulfill the business’s needs.
Temporary Workers:
  • Pros:
    • The temporary agency finds the workers for you, lessening the time and hassle of searching for candidates.
    • You can get workers when you need them and let them go when you don’t.
    • You can save costs since you are not paying benefits or dealing with payroll, tax, and legal issues.
  • Cons:
    • They are typically less reliable than full-time employees.
    • They are less committed to your workplace since their work is temporary.
    • You may need to provide training each time you hire a new temp to get the person up to speed.
  • Pros:
    • They bring a fresh perspective and new ways of doing things to your business.
    • They can work for free (in return for college credit) in some states.
    • They can lead to eventual full-time hire after graduation.
  • Cons:
    • They require lots of supervision and training due to their inexperience.
    • They may have restrictions on their hours and job type.
    • Legal issues regarding payment and minors in the workforce need to be considered.
Final Thoughts

Businesses should carefully consider their hiring needs and options before making any decisions. Full-time employees may offer more commitment and long-term development opportunities but may come with higher costs and legal issues. Part-time employees may offer more flexibility but may lack commitment and knowledge. Temporary workers may provide cost savings but may be less reliable and committed. Interns may bring a fresh perspective but may require extensive supervision and training. By carefully weighing the pros and cons of each option, businesses can make informed decisions that align with their goals and budget.

If you are planning to start a business or are thinking about scaling an existing one, be sure to read the ebook “Customer Centric Business Planning: A Guide to Optimizing Your Business for Maximum Success”. It is an essential book for business owners, managers, and entrepreneurs looking to leverage real-time insight to start and improve their business operations. Learn how proper customer centric business planning can assess risk and opportunity, and create an actionable roadmap for success.

Copyright ©John Trenary 2023. All rights reserved.

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