Stop Hiring So Many Employees: The Entrepreneur Expedition Ep. 103. Welcome back to The Entrepreneur Expedition! This week we will be discussing why your small business needs to stop hiring so many employees and looking outside your walls for help.
Hello and welcome back to another week of The Entrepreneur Expedition. This is your host, Alex Iglesias, and I want your small business to stop hiring employees.
Oh no no no! I said it! Oh, no, I said it. Oh No… Um, let me — let me just — but let me explain myself. But yeah, off the bat, seriously stop trying to hire employees. So many employees — you need employees — everyone needs employees — everyone needs that loyal core group that actually works for them, is on their payroll, all that stuff you can’t…
Well, I mean I’m sure some companies operate without it. There are plenty of one-man companies out there. One-woman companies, one-person companies, whatever, but for the companies that are trying to scale — that are trying to grow — that trying to expand — that are trying to have full teams: Stop hiring so many employees. You’ll save so much money.
First off, I mean just off the bat, you’ll save so much money paying an outside source to do that type of work. So, like, for example your accounting work, your marketing work, your consulting business development services — you name it IT — stop paying employees to do these things that other companies will do for your company for cheaper and potentially for better. It drives me crazy. I sit here. I read things from small businesses. I talked to small business owners I’ve worked for and with small businesses. Plenty of them. And the number one thing — the number one problem I see when I communicate or witness these small businesses operate so — that they have way too many people on their payrolls.
The problem is — think about it — maybe you’re a company that needs, you know it, just — you get what you pay for. It’s true. You get you pay for. If you buy a $300 computer, it’s not going to run the same way, or it’s not going to last you as long, or you’re not going to have as good of a time as you will with a $1,500 computer.
It’s the same with employees. If you need an accounting staff, but all you can afford is to pay two bookkeepers, you know, 40,000 each — you’re not going to get the same quality as you would if you were to pay one bookkeeper and have an outside accounting department who has CPAs on the team, or unlimited knowledge and resources, who will charge you a grand total of twenty thousand in a year or less. I mean depending on their pricing — I’m sure you can exceed 40 thousand a year with an accounting service — but you can also have definitely come way under with an accounting service. Stop hiring so many employees. You can get more specialty — more specialized services — elsewhere. You can get services that are more cyclical, or in on an as-needed basis, making it. First off there are plenty of people who like cyclical work, and they say, these months I’m going to do this, and these months I’m going to do that, but, in general, it hurts the employee if you say, hey, I only need you for six months. It’s temporary. When that six months is over that employee is going to have a hard time. I mean that’s really all, just that’s all, opinion right there.
I’ve worked for tough jobs before, and they kind of screwed me over at the end of the process, but you’ve got so much more flexibility. The cost-benefit analysis, if you were to run a cost-benefit analysis on outsourcing versus hiring employees, the benefits of outsourcing far outweigh the costs. And the costs of outsourcing outweigh, like, are less than the cost of an employee. I mean it’s a win-win across-the-board.
Stop hiring so many employees. Guys, not really sure where this is all coming from, no, just a little peeved from talking to a small business owner recently who, you know, they were complaining about how their employees aren’t performing the way they want to and don’t have the capabilities or the knowledge to do certain things that they wanted. But they insist on keeping those employees and not looking at outside sources. So instead of, you know, putting the company first, and saying I’m going to bite the bullet, pay a little bit more money and get this stuff done, they’re just going to accept poor performance and poor work. It’s not cool. Look outside your company. Their answer is — there are plenty of answers outside your company to, you know, really contribute to the greater cause for your company and really take you to the next level.
And that’s kind of the end of my podcast. I just wanted to run through those thoughts with you guys. Let me know what you think. Get in contact with me you can find my company AltoSG.com. You can find our contact information, whatever. Let’s talk. I’m serious if you have any comments or questions. And once again, this is Alex Iglesias, and thank you for tuning in to The Entrepreneur Expedition. Have a good week!