Six Advantages of Hiring Now

In an economy that's so unpredictable that even Nostradamus might consider scuttling into retirement, there are still several indications that now is the time for a small business owner to hire new employees.

Rhonda Abrams, small business columnist for USA Today, takes the point of view that to experience meaningful growth, you'll have to hire. Surprisingly, at least at first thought, she writes, "more than half of the Fortune 500 companies actually started in a recession or depression." When that statement is analyzed more closely, some of the logic becomes more apparent.

• Competition is weaker. As other struggling businesses start dropping out and cutting back, their loss can be your advantage if you can seize the opportunities that open up in the wake of less competition.

• Customers are looking for less expensive alternatives. Many folks who were locked in to buying brand names from the big guys a few years ago are looking for cost-effective substitutes. If small businesses can supply that, they have a built-in edge that was spawned as a direct result of the recession.

• Labor costs are lower. In some cases, they are substantially lower. Potential hires that might have turned up their nose at a lowered pay rate a couple of years ago are often happy to accept that wage in today's business climate.

• A recession produces a growing talent pool. With more people are looking for work, you have a wider selection of candidates for the job and this fact leads to two reasons to hire now.
1. With more talent available, you can select an employee that more precisely meets your current need instead of settling for hiring someone that is 'close, but trainable.' You will be able to realize some savings in training costs almost immediately.
2. You can afford to be pickier and choose an employee that best meets your own business philosophy. This will render greater benefits over time because better compatibility results in a less stressful and more efficient workplace.

• You will be better prepared to take advantage of a future growth spurt. Even if you can't justify hiring a full-time employee now, hiring part-time or contracting out some of your work will position you in a good place when the recovery cycle does come.

One final thought from Ms. Abrams: "Creating a good job is one of the most rewarding things you’ll ever do."