“I am drowning. I need to hire someone.” It is one of the most common things we hear, and one of the most expensive decisions a business can get wrong.
A hire is not a workload decision. It is a numbers decision. Get it right and it unlocks growth. Get it wrong and you have added a five-figure cost to a business that could not carry it. Here is how to tell which one you are looking at.
The honest answer: it depends on the numbers, not how busy you feel
Being run off your feet feels like a clear signal that you need help. Sometimes it is. But “busy” and “profitable enough to hire” are not the same thing. Plenty of businesses are busy precisely because their pricing is too low or their processes are inefficient, and hiring into that just means paying someone to help you lose money faster.
Before you write the job ad, the question is not “am I busy enough?” It is “do the numbers support this, and will this person pay for themselves?”
The real cost of an employee (it is not the salary)
This is where most first-time hirers get a nasty shock. A £35,000 salary is not a £35,000 decision. Once you add everything on top, you are realistically looking at closer to £45,000:
- Employer National Insurance on top of the salary.
- Pension contributions you are legally required to make.
- Holiday pay — they are paid for weeks they are not working.
- Equipment, software, desk space and the kit they need to do the job.
- Your time training, managing and covering for them, which has a cost even if it never appears on a payslip.
Run the real number, not the salary headline. If the role cannot generate or save more than its true cost, it is not a hire, it is a liability.
The signs you are ready
- You are consistently turning away profitable work you could take on with more hands.
- You are spending hours on low-value tasks that someone cheaper could do, freeing you for high-value work.
- The demand is steady and proven, not one good month you are hoping continues.
- Your cashflow can comfortably absorb the full cost for several months, before the new person is fully productive.
The signs you are not (yet)
- You are busy but not actually profitable. Fix the margin first.
- The demand is a recent spike you are hoping becomes permanent.
- You would need the new hire to be productive from day one just to afford them. They will not be.
- You have not run the real, fully-loaded cost, only the salary.
Hire, or outsource?
A full-time employee is not the only answer, and often not the best first move. If the need is specific or not yet full-time, outsourcing or a freelancer can give you the capacity without the fixed cost and commitment. Hire when the work is constant, core, and clearly justifies a permanent salary. Outsource when it is variable, specialist, or you are still testing whether the demand is real.
Stress-test it before you commit
Before you make an offer, run the decision against your actual cashflow. Can you carry the full cost for three to six months while the person finds their feet? What happens to the numbers if your busiest client leaves the month after you hire? If the answer to that second question is “we would be in trouble,” the business is not quite ready yet.
None of this means do not hire. The right hire at the right time is one of the best things you can do for a growing business. It just means make it with your eyes open and the numbers in front of you.
Thinking about a hire and not sure the numbers stack up? That is exactly the kind of decision we help with. Send us a message and we will stress-test it with you before you commit.
