The costs of hiring a manager for a business many owners don’t think about when first starting out. Managing the day to day of a company is done by the owner at first, but as the business grows, it becomes clear that hiring a manager is necessary. Understanding the costs of hiring a manager is critical for planning your growth. Getting this right will help you to find the right candidate, at the right price, for your business. This article will cover a number of key items related to management hiring and related subjects to help you get started in the right direction.
Balancing Quality & Cost when Hiring a Manager
Good managers are in high demand. You will have to offer them a competitive compensation package in order to attract and retain top talent. Finding a way to balance quality and cost in this area can be difficult. In most cases, you will have a budget that you need to work within in order to hire a manager and remain profitable. The following are some key tips for accomplishing that goal:
Post the Job Publicly – Whenever hiring a manager, you want to make sure your job posting gets in front of as many qualified applicants as possible. The more people who apply, the easier it will be to find the right candidate at the right price.
Take Your Time – It can be tempting to rush and hire one of the first people you interview. If you are patient and wait for an exceptional candidate you will find better results. This will help to avoid wasting money going through the process again later.
Negotiate with Non-Monetary Benefits – If a good candidate is interested but asks for more money, consider countering an offer with some type of non-monetary benefit. This could include additional vacation time, options to work remotely, or any number of other things.
Pay for Performance – Consider making part of their compensation based on their performance. If they increase sales significantly, for example, you can afford to compensate them with a generous bonus.
Identifying the Right Manager Credentials
One of the most important things to look at when hiring a manager is what type of credentials they have. As a business owner, you need to keep in mind that all the credentials an applicant holds are valuable. This is true even if they aren’t specifically beneficial to your business. This can have a big impact on the costs of a manager. Someone with an extensive resume may demand a high salary, but if they don’t have experience or education in your specific industry, they won’t be worth it.
Making a list of specific credentials you are looking for may help you to find someone who has a resume that is right in line with your needs. When this happens, it is often possible to hire an ideal candidate at a salary that is very reasonable. It also cuts down on the time wasted interviewing people who won’t be a good fit.
Costs of a Manager Beyond Salary
When it comes to hiring a manager (or any employee for that matter) you need to look at the total costs of the entire compensation package. Add up the salary, potential bonuses, insurance costs, training, and other expenses associated with the employee. This will allow you to have an accurate idea of how much you are actually paying someone. In most cases, the main area where you can make changes to this cost is going to be in the salary. By planning this out ahead of time, you will know exactly what you can offer potential managers so that they are a true asset to the business.
Don’t be Afraid to Ask for Help
Hiring employees, and especially managers, is a major move for any business. Taking the time to get it right is critical for long term success. If you find that this is not an area where you excel, never hesitate to ask for help. There are contracting services, headhunters, and others who can help you evaluate the costs of a manager. They will be able to help get the hiring process started right away.