Hiring shouldn't be done on a whim

6/21/2011

Depending on a small business' financial situation, hiring new employees could be the best course of action. If business is good and new clients are lining up, entrepreneurs may feel pressured to bring on additional workers fast. However, American Express OPEN suggests entrepreneurs should take their time when hiring new employees - it could have a big payoff.

Rushing to bring on a new employee will almost never result in making a good decision. Moreover, hiring an unqualified employee who quits shortly after could have potentially big ramifications in terms of bottom line - having a high turnover rate can cost a company 15 percent of the employee's first-year salary.

"Make sure to plan precisely what you need out of the position you’re looking to hire, set realistic expectations and take time choosing a candidate that fits the bill," advises the source.

While some reports indicate hiring seems to be soft, at least one subset of entrepreneurs plans to hire more employees over the next year. According to Key4Women, more than 40 percent of female business owners intend to bring on new help this year.