When to hire your first employee or site manager

Signs you might be ready

• You’re regularly turning down good work
• Jobs are running late because there aren’t enough hands
• You’re doing admin and quotes every night and weekend
• Your margins are healthy and you know your numbers
• There’s enough steady work to keep someone busy, not just a busy month

If the last two aren’t true yet, hiring can make things worse. More people on thin margins means more risk, not more profit.

The true cost of an employee

A wage is only part of it. In Australia you also need to allow for super, workers compensation insurance, leave, public holidays, tools, a vehicle or travel, training and the time they spend not on billable work. The real cost is well above the hourly rate.

Award rates, super and employer obligations change. Check current requirements with Fair Work, the ATO and your accountant before hiring.

Who to hire first

Not every first hire is another set of hands on the tools. For some businesses the best first hire is an admin person or bookkeeper who frees the owner up to quote, sell and manage. For others it’s a leading hand or site manager who can run jobs without them.

The right answer depends on where your time is going and what’s holding the business back.

Price the hire into your jobs

An employee has to be paid for by the work. Before you hire, check that your pricing covers their full cost plus a profit on their time. If it doesn’t, the wage comes out of your pocket.

Systems before people

A new hire is only as good as the way you bring them in. Clear processes for how jobs run, how things are ordered and what “done” looks like make the difference between someone who adds value and someone you’re constantly managing.

Growing a team is a big step. We help trade business owners decide when, who and how, so the first hire pays for itself.

General information only, not financial, tax or legal advice. Speak to your accountant or adviser about your own situation.