Should You Hire More Employees?  Costs And Benefits of a Larger Workforce

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As a small business owner, there will come a time when hiring employees will become a necessity. As your business grows, so should your workforce. But is there such a thing as too many employees?

Taking on new employees is one of the greatest expenses to small businesses. Making sure you are choosing a wise time to employ more workers is key to reducing risk to your business.

But how do you know whether you will be benefitted by taking on new employees? Arguably more importantly, how do you know when the costs will be too great?

Costs And Benefits of a Larger Workforce

Costs And Benefits of a Larger Workforce



Employees are the lifeblood of a business; one cannot exist without the other. As workload increases, so should employees.


By introducing a new employee, you are likely to reduce the burden on you and your existing employees. This should free up time for other aspects of the business to be given attention, and gives the scope for growth in the company. Now you have the capacity for it, bring it on!


This mostly goes hand in hand with time. As employees have more time to focus on their work as their burden is lifted, the quality of their work should improve. Plus, if you invest in quality workers, you should see a rise in the productivity of your business.

Should You Hire More Employees?  Costs And Benefits of a Larger Workforce | Hire More Employees pinCosts

Wages Costs

Each employee will bring with them a greater cost merely in terms of wage. If you are receiving enough work to pay off this extra cost: great!

If it is closer or unsure, you will do well to consider whether bringing in a new employee is a good idea or not.

Consider whether a  new employee is the best solution or whether the extra workload could be spread amongst existing employees.

Training Costs

As new employees are brought into the business, they will require training. The level to which this training will affect your business will depend on the type of company you run. Those concerning a more specialised skill will require more time-consuming and detailed training, and so are likely to cost more.

Training costs can be unexpectedly high, so make sure to budget these in to make sure you can afford to take on a new employee.

Tax Costs

Adding employees will add extra costs regarding tax. Any use of PAYE or National Insurance will need to (in part) be dealt with by you. This is both time-consuming and can cost you.

Companies like Employer Advantage can be a real asset to a small business. By handing over the work of sorting payroll, you know you will receive an efficient job whilst having time to yourself for focusing on other aspects of the business.

Should You Hire More Employees?

In the end, it comes down to whether or not the cost of taking on a new employee will be worth it for the gained profit. As the business owner, you will know whether or not to make that call.

Image credit: Piqsels

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About Lauren Kinghorn

Visionary Digital Entrepreneur ► Heart-Centred Influencer | Plant-Based Enthusiast | Speaker | Writer | Course Creator | YouTuber | Podcaster * Come join me at Wealthy Affiliate *

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