The job market has become a hot topic... Even hotter with the recent announcement on California pushing for the $22/hour minimum wage rate.
As always, we like to answer the question in the back of every business owner's mind -
"What does this mean for my business" and "Why should I care?"
Check out this week's episode as we dive into the critical financial considerations that a law firm and business owners should have.
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Episode Show Notes :
Who is the episode for (be specific): if you are a growing law firm or business that is considering hiring employees or contractors
Segment 1: relevant news stories
Friday September - employment report was released by the bureau of labor statistics; https://www.bls.gov/news.release/pdf/empsit.pdf
the unemployment rate rose to 3.7 percent - only 0.2% up compared to July - July was at 3.5% the lowest that it has been in the last 50 years.
US adds 315,000 jobs in August, exceeding economists' expectations
Minimum wage increases
Compared to fast food jobs - $20/hr, would earn more flipping burgers than working as a paralegal or office administrator.
Mandatory livable wages
Segment 2 -
Often businesses run into two very big issues:
Stunted growth - when it comes to growth you will need to get more accomplished and if you don't get more hands involved you will slow down or stunt your growth - what does this look like?
Growing quicker than your headcount/team can support
Underestimate the amount of time tasks can take - (importance of having processes in place EP #7 )
Owner or team burnout - often when it comes to growth the owner just puts their head down and down as much as they personally can but that gets old and unsustainable What does this look like?
Spending time on things that aren’t value add - OUTSOURCE (EP #8)
Not having clear alignment on what the business goals are (short-term and long-term)
Segment 3: Resource Tip:
When it comes to hiring you to have to balance Cashflow and Workload - which means you can’t just hire people because you want a big question to ask this - can you afford it
When should you be hiring?
Can I afford to hire -
What will this role look like? Revenue generation - understanding the benefit that this role will create vs. the expense required
Do I have the right marketing/sales pipeline to sustain the revenue needed to cover my cost - this considers not only can you afford to hire today but can you sustain the revenue to keep paying your staff
Are you balancing workloads and workflows - do you have your team doing the right type of work
A quick financial analysis test would be to consider this - If your team is working alot and low on capacity and your cashflow is low then you are probably working on low value services or your prices are too low - they are not working on the right things
Hiring people is an investment that should help your business grow and be more profitable