If you are a manager who is running a team of professionals or you are an entrepreneur who wants to hire more people to work under your authority, then you might come across situations where you need to expand your business to get more clients or to handle a growing list of assignments. This growth might range from introducing a couple of new workers to expanding your business in a whole new city. David Guest, a business coach in Melbourne, warns us about some unexpected expenses while growing a team.
- Human Resource Expenses – While growing a team, one must be diligent enough to follow all rules and laws related to human resource compliance. Starting from advertising about the job opening to interviewing and finally hiring a candidate, the entire process costs a decent amount of dough.
- Medical Tests – This rule only applies to people who grow their teams in an office and not in the virtual world. While hiring any new person, it is absolutely necessary to make sure that prior to joining the company, he undergoes a rigorous medical test. Any employee who does not go through this check up and then contracts some disease within the first six months can potentially sue the company for millions by claiming that he fell sick as a result of joining the new workplace. Such a gigantic expense is not worth shelling out, no matter how efficient or diligent that employee is.
- Local Authorities in new venues – Say you want to start a new office and increase your staff by expanding into a new city. After hiring all the possible recruits in your older office, you ask them to move to the new one. If you do not have all the necessary permits of opening the new office, the law or the local governing body might revoke your right to start a new business and the losses you suffer might ruin your career.
- Relegating New Duties to existing team members – This is one problem that many new managers seem to face today. When you’re managing a team of five to ten people, it is not too difficult for you to have a one on one relation with each team mate. But when the size of that dream team increases from ten to twenty, you might want to consider promoting one of the experienced team mates to the position of an assistant manager who can make it easy for the newly hired people to get into the groove. A promotion like this comes with a pay hike.
- New Provisions – This is a common occurrence in small offices. Whenever the boss or owner hires new people, and the number of new entrants is almost equal to the number of existing employees, the office needs to grow in space and also provide new furniture, computers, stationery, etc for the fresh hires.
As a business coach and someone who knows the importance of forming a dream team to expand one’s business, David Guest simply asks us to be wary of such unexpected expenses.