“When you are a startup, sometimes it can be like you are a 16-year-old that just got their driver’s license,” said Andrew Ward, Managing Director at Diversified Staffing. “You are passionate about your business, you want to be in full control of what is happening, and you want to go fast. Sometimes you might bump into things along the road, or you might get a speeding ticket. Hiring additional staff comes with risks, and if you haven’t hired someone before and managed all the aspects of employment that goes along with it, you might incur costs to your business that you never considered possible.”
According to a study Intuit Canada conducted earlier this year, 33% of small business owners didn’t know the costs associated with on-boarding new employees. For those who did have a good sense of what the associated costs would be, 27% said they expected the tally would add up to $4,000 or more, said the study.
Hiring someone costs businesses more than just the employee’s salary, phone and desk, said Ward. Employers have to consider costs of the whole recruiting and hiring process, benefits, Worker’s Compensation, Performance Reviews, right through to severance costs.
“It may sound cheaper to do that yourself, but if you make a mistake it can be very costly,” Ward said. “By working with a company like PEO Canada or Diversified, you can focus on your core business, reduce your risk, and we can help you by managing the hiring process and the day-to-day administration of your personnel.”