Increased sales and plans for expansion are a happy and exciting time for business owners . But as we discussed in last week’s post the bear market is in the house and caution is highly recommended. Along with confirming that customers will spend the way you need them to, you’ll also need to ramp up your operation in one way or another to meet the increased demand for what you’re selling.

Each of those scenarios requires a different type of staffing strategy—-maybe part-time, maybe full-time; temporary/ seasonal; possibly W2 and on the payroll or maybe 1099NEC Freelancer? There’s also the option to not hire anyone (unless your opening additional locations, for example). To figure that out, you’ll also need to make a realistic assessment of how much more work you can coax out of your current staff, without provoking a mutiny. Below are potential questions to ask yourself plus solutions for increased staffing needs at your growing organization.

Start your decision process by defining what “increased sales” means for your company. Is the plan to add e-commerce to your website so that you can sell products or provide services online? Or have you signed a new client and you’ll provide services on an ongoing basis—- or maybe the work will be completed in 4 months, but will keep you very busy? Maybe this is turning out to be a reality hot summer and the lines at your ice cream shop are halfway down the block? Below are practical questions to ask yourself as you figure out the best staffing solution for your company.

What function needs to be done?

HR, IT, bookkeeping and social media management are services that are often outsourced to a fellow Freelance expert or perhaps to a large company that operates nationally. Your company’s need for one or more specialized skills or labor may be ongoing, but the frequency of need may not require full- time work.

You can hire part-time help, but what kind of working relationship should you enter? Can you afford to make a commitment to pay someone maybe 10 or 20 hours per week, every week, as a W2 employee? Are you confident that your revenue will support the expense?

If it seems reasonable to assume that you’ll have the cash-flow and you have a good relationship with a particular vendor and you’d like to maintain that, then make a salary and time commitment offer. You might propose W2 status to someone who’s worked in your organization as a 1099NEC (who will be very happy to have taxes taken out during every pay period and eliminate at least one source of quarterly tax filing), or hire a newly recruited person.

Do you anticipate short-term or long-term deployment?

Obviously, if you need labor or a skill set—-grant writing, meeting facilitation, website developer, or seasonal help (Christmas rush or summer help?)—-for just a few weeks or months, you hire 1099 NEC workers. The labor or skill set may be mission- critical because a lot is riding on its fulfillment, but you need it only for a special project or defined time.

But if sales at your bakery are up and the line for coffee and muffins is noticeably longer, then you’d be wise to hire one or more W2 employees to shorten the wait time, avoid over- working and frustrating your current employees (which could lead someone to unexpectedly quit and leave you in a bind) and maintain the positive customer experience.

Which costs more–1099NEC or W2?

There are costs and other downsides associated with both outsourcing and hiring permanent employees. Sometimes, calculating the costs, of dollars and other factors, can help you reach the most favorable. or least onerous, decision. Your HR/ payroll and benefits management service (which may be in-house or outsourced) can research the expenses associated with bringing in a W2 employee. A visit to indeed. com or Upwork can let you see the ballpark range of hourly or project Freelancer rates.

The bottom-line cost of hiring a 1099NEC Freelancer will be lower than the cost of hiring a W2 employee, but there are sometimes persuasive reasons to do the latter.

Calculate the time needed to get each choice up and running (onboarded)

The answer to this question has big impact. While you may have the money to hire a W2 employee and even prefer to install a permanent team member into a mission-oriented position, you may realize that hiring an experienced Freelance consultant to do the job will allow you to get things done much faster.

Your Freelancer will be a hired gun who possesses deep expertise, a pro who needs minimal onboarding and training to successfully produce the deliverables. Because your Freelancer probably concentrates his/ her work on just three or four related competencies, the quality of the work and knowledge brought to the table will be deeper and more specific. Going immediately to a Freelancer means you bypass the potentially time-consuming hiring process and obtain the skills or labor you need ASAP.

Do you want a boss-employee relationship?

Working with a permanent (well, more or less) team is a different dance. it’s a longer-,term relationship and it demands a different kind of leadership—more intense. If you enjoy this kind of stuff, you’ll get to help someone grow professionally nurtured by the training opportunities that you provide, through a combination of assignments that you initiate, skills building workshops that you make available and career development pep talks that you give.

Thanks for reading,

Kim

Image: The Stone Breakers (1849) Gustave Courbet (France, June 1819 – December 1877). The painting was destroyed along with 154 other paintings in February 1945, when a transport vehicle moving the art to the castle at Konigstein, near Dresden, Germany was hit by Allied forces (“friendly fire”).