Running your home-based business is quite different from other business setups. Traditionally, such businesses were associated with solo ventures, where the entrepreneur handled all business matters. However, success in your home-based business may soon necessitate that you hire employees to help your solo venture. The hiring process often produces some elation, which can quickly be followed by panic if you don’t do it right. While hiring employees for your home business has plenty of benefits, it comes with its fair share of cons.
Among the major drawbacks and uncertainties is the employee conundrum. Get to know the following before hiring employees for your home-based business.
Why Do You Need the Employee?
The best place to begin is to determine why you need the employee in the first place. Think about your current tasks and why you should have another person handling them. While it is not surprising, most people end up hiring employees for tasks they can handle by themselves. Most people hire employees to free their time and avoid being constantly overrun by their tasks.
That said, if you don’t feel overrun by your tasks, hiring an employee is an unnecessary expense. They won’t be essential, and you will be spending your money worthlessly. However, if you feel overrun, especially by specialist tasks, don’t hesitate to make the hire.
What are the Costs of Hiring an Employee?
Most home-based businesses are small businesses looking to break into the market. This makes it challenging for such businesses to afford full-time employees. Note that hiring an employee goes beyond posting your job ad and finding the perfect candidate. The hiring process is costly, right from paying for the job ads.
Other costs include training the employee, monthly salaries, and other benefits packages. Ensure that you estimate the costs of making the hire versus the benefits employees bring into the company. If spending money on onboarding the employee brings more money into the company, proceed with your hire.
Where Will the Employee Work?
Being a home-based business, you should also consider where your hire will work from. While most people allow their employees to work from their home office, having someone constantly in your house is agreeably weird. Most employers allow their hires to work remotely from their home office, especially if the tasks can be done remotely. If this isn’t viable, you might be forced to relocate your home business into a physical office premise.
Most home-based businesses prefer hiring freelance workers for several reasons. For starters, you won’t have to pay tax and other benefits apart from wages for the work that they do. This is an excellent option for home businesses with specialist tasks that should be done. For instance, hiring a freelancer is the best option for website owners who need some content updates.
Are There Any Risks?
Home-based business owners should also consider the possible risks of hiring employees. An obvious risk is the possibility of employee inefficiency that can destroy your business. Fatal errors might cost you valuable customers, brand reputation, and other consequences. Beyond this, hiring an employee also exposes the business to the following legal issues.
1. Violation of Zoning Laws
Zoning laws are a big problem for home-based businesses. Most residential areas aren’t zoned for businesses. Therefore, if you run your business from your house, local authorities might come knocking. Even if your home business has been cleared to operate, your hire may violate these laws, primarily if they work from your house and have to visit regularly. Therefore, check with your city authorities and homeowners’ association to avoid such illegalities.
2. Unclear Employee Policies
The undetermined size of your business operation is another challenge affecting your home-based business. Since they are confined to home offices or garages, you might not have clear breaks or meet other conditions required by the law. Note that most states require that employers should provide a break and mealtime areas to employees.
If you don’t have such provisions, you should allow your employee to break or eat off-site. Also, if you expect them to continue working through their breaks and meals, you should compensate them.
3. Overlooking OSHA Standards
All private businesses with employees should adhere to OSHA standards and regulations. Your home-based business might be exempted from record-keeping and injury-reporting provisions because of having less than ten employees; you shouldn’t violate other OSHA rules.
Most home-based businesses excel in various statutes, including sanitation, fire, and safety. However, they seriously fail when it comes to providing access to a clean bathroom. Most home-based businesses are uncomfortable with sharing bathrooms with their employees. Therefore, you should provide a designated business bathroom to avoid legal problems.
Making your first hire is an exciting milestone for your home-based business. It is a sign of growth and enables business owners to delegate other tasks to focus on running the business. Like established businesses and organizations, you should observe employment laws when making the hire. Consulting employment lawyers is a sure way of ensuring that you comply with all the provisions.