Costs to Be the Boss
By Wheeler del Torro
We all have images of "the boss" - getting to the office late and leaving early, afternoons golfing, lavish lunches - the very people you escaped by starting your own business. What is often obscured from the employees' view is that the bosses in any company are the last line of defense when a problem arises and the first to dip into their own pockets if the company account comes up short. If they are out at the country club now, it is often because they spent years building a company and training staff that could thrive even if they took a step back. You can get there, too, if you avoid some common staffing missteps.
Once a business is set up, the biggest expense from then on is often payroll. Wages, benefits, and taxes can take a toll on your would-be profits. Even in lean times, paychecks must be on time and for the exact amount earned. Before you hire that first employee, make sure you are not victim to any of these three common business owner syndromes.
"My Assistant Will Get Back to You"
You own your own company, and you should be proud of yourself for taking the risk and striking out on your own. Don't let that pride convince you to hire employees for the sake of saying you have a staff. Many new businesses take on unnecessary expenses when they hire people simply because they believe that's what business owners do. Payroll expenses needlessly suck up their profits. Ultimately, you will feel much better having money in the bank after the thrill of saying "my staff will handle that" wears off.
Smart hiring decisions are based on a detailed, honest assessment of your needs and your finances. The first question to reflect on is "Do I really need staff?" Notice that the question is not "Would I like to have staff?" Until you have a healthy profit margin, staff additions should be to fill needs that you can't meet yourself. If, for instance, you offer door-to-door drop off and pick up as well as drop off at your center, you can't physically be in two places at once. You will need to hire staff to either chauffer the dogs or greet clients at the center. If, however, you want Tuesday off to go hiking, you will be better toughing it out without adding staff. Remember that it is always easier not to hire than to downsize - emotionally, financially, and in sheer paperwork.
If you determine that you need to add staff, determine how many people you can comfortably afford and at what price. Keep in mind that the hourly cost is augmented by benefits and taxes, so make sure you calculate potential payroll using the full cost of each employee.
"Of Course Their Resume Is True"
Once you determine that you need and can afford staff, it is time to begin the hiring process. When drafting your job posting, think about the values and characteristics that are important to you. Skim other dog daycare job postings for ideas. Once your ad is written, there are many portals to post your job listing.
Posting your ad is the easy part. The next step is sifting through resumes and interviewing. As you read through resumes, look for experiences and language that demonstrates leadership characteristics, critical thinking, and an active lifestyle. Invite people who stand out to you to an interview. Interview more people than you think you need to make sure you have options.
When you are reading resumes and interviewing candidates, keep in mind that what you are reading and seeing is the sugarcoated version of what they've done and who they are. They are not being malicious but just trying to give themselves an edge to get a job. You need to be a detective to see past the sugar and get to what someone's true skills are. If they say they can speak another language or train dogs, ask them to demonstrate their skills. You will be able to see which skills are real and which were snuck in hoping you wouldn't ask questions.
Also filter what experience is relevant to the position and what is not. Owning a dog is not experience. Loving dogs is not experience. Jobs that require listening, following directions, problem solving, and managing groups (of people or animals) will tell you more about how a potential employee will behave. However the interview goes, always do the following:
- Schedule a trial shift - See how they interact with dogs, clients, and other employees.
- Call their references - A seemingly perfect candidate may have some past transgressions that could inform your decision. Find out before they are on your payroll by contacting past employers.
"Trust Is Enough"
In a great situation, you will be surrounded by a lovely staff that operates smoothly and treats each other like family. Even if that is the case, it is still important to protect yourself once you hire employees. Before you hire employees make sure you have the following:
- A working understanding of the laws and regulations around labor in your state - You don't need to start studying law at night, but you should know the basics of what's legal and what's not in terms of scheduling, pay, and benefits. "I didn't know" isn't a good defense if an employee brings legal action.
- Insurance - A million things can go wrong between employees, clients, dogs, facilities, equipment, etc. Make sure you have comprehensive insurance to help you in those situations. Also make sure you are named on the insurance in addition to the company - a disgruntled employee will name everyone they can think of in a lawsuit to see what sticks.
- A good lawyer - Just like insurance, you hope that you won't need them, but it's smart to have them in place. Once you have a legal issue, it is added stress to search for and hire an attorney that doesn't know you or your business.
"Everyone Loves Me"
Hopefully you will grow to have a close relationship with your staff. People who love their jobs normally love it because of their coworkers. There are many ways to be a great boss, but at the end of the day, keep in mind that you are the boss. Employees want the company to be successful, but they don't want you to flaunt your own success. Employees want you to be friendly, but they don't want to hear about your problems or your personal life. Maintain a professional but personable distance to keep everyone on the right track.
A little bit of distance also helps you maintain perspective. Informal evaluations of employees should occur frequently. Is the employee helping you make money or are they simply not causing you to lose money? Are they going out of their way to help the company move forward or to help themselves move forward? Keeping your eyes open and your mind reflective will help you put the best team possible together.
Go back to why you started your own business. This is your chance to design your own perfect job. Make it a place where you and your staff love to work, and you will attract the right sort of staff. Keep your ego in check and your eyes open, and hold on to a healthy dose of skepticism; you are ready to maintain your team over the years to come.