When do you know when to start hiring?
Here at GB Plumbing, we knew we should be starting to hire when we were working over 70 hours a week and not seeing any slow down with jobs coming in. We’re now up to 3 trucks, and are looking to hir...
Forum Discussion
One way I think about hiring is:
Can the new hire generate at least 2-3x their fully loaded cost?
For example, if an employee costs $50,000/year after payroll taxes, workers comp, and other expenses, can they help generate $100,000-$150,000+ in revenue or free up enough of your time to grow the business?
I also look for operational signals:
- Overtime becoming the norm
- Turning down work
- Long customer wait times
- Enough work in the pipeline to keep another person busy
I’ve found it’s usually better to hire slightly before you’re desperate rather than after you’re already overwhelmed.