MBA1221 Is Hiring Part Time Employees a Good Idea?

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Hey O welcome to the $100 MBA Show. Powerful business lessons coming at you every with our daily 10 minute business lessons for the real world. I'm your host, your coach, your teacher Omar Zenholm. I'm also the co founder of $100 MBA, a complete business training and community online and in today's lesson you will learn Is Hiring Part Time Employees a Good Idea? There's a right way and a wrong way to have a relationship with a part time employee. Just like in any relationship, business is no different. We respond to the level of commitment the other party has. And often businesses have a hard time hanging on to good part time employees because frankly, they don't feel like you're committed to them. So in today's lesson I'm going to share with you what works when it comes to having part time employees. Many of us, we try to count on freelancers and people to fill in extra hours. But if it's not steady work, consistent, predictable work and income for the other party, for the employee, they're going to look elsewhere. They're going to look for somebody who is committed. So what's the solution? What can you do when you need somebody to do some work? You don't need them full time, but you want to hang on to them for the long run as a part time employee. That's what we discuss in today's lesson. So let's get into it. Let's get down to business. In my 17 years of building businesses, I've hired a countless number of part time employees. Most of them left me prematurely or left me before I wanted to stop working with them. And it's mostly because they didn't feel there was a sense of commitment on my end. They didn't have any consistency. They didn't have predictable revenue. When you hire somebody as a freelancer and say hey, I want to hire you for this job, they see it as a project. They see, okay, this is how much money I'm going to make from this project and this is how long it's going to take. It's defined. But often what we do is after the project we say, well, I'll hire you on an hourly rate whenever I need you. The problem is that you just can't be sitting there waiting for your beck and call, right? They have other things to do, they have other money to earn, have other clients to serve, and they're going to serve the clients that are willing to commit to them. And the bigger the commitment, the more they're going to work for those people. So you might try to reach out later on and say, hey, I need a tweak on my website that we worked on together. Can I get you for 10 hours? And they'll be say, hey, I'm fully booked for the next three months. I'm working on a big project full time. So sometimes it just does not work out and you're going to have to find somebody else who's unfamiliar with the project just super, super hard. So what do you do? You don't need a full time employee to work on something that you may just need them to work on once in a while. And of course you don't want to pay somebody a full time salary that they're not going to be doing full time work for. That's just plain and simple a waste of money or a waste of funds on your end. And so the solution I came up with over the years, and I'm sure it's not a new concept, I didn't come up with it, or it's not my idea, but my trials and errors have brought me to this point and that's having a minimum retainer or a minimum number of hours. If you have hired somebody as a freelancer or worked with somebody on a project and you really like their work and you love working with them and they really believe in your product and your service and you want to continue to work with them on a part time basis later on, or on a just in need basis, or just in time basis as you want to call it, you're going to have to have some level of commitment. No one's asking you to hire this person full time and have them twiddling their thumbs waiting for you to give them work. But you got to give them some commitment. And depending on how much work you can give them, that's where the commitment is going to lie. So even if it's Just saying, hey, I will commit to paying you five hours a week and give you a minimum of five hours of work every week. I may even give you more hours, but the minimum is five. And that number can be 10 hours. It could be 20 hours. That's up to you in the amount of work that you can give them. But the point here is that this gives the employee something to work with. It gives them some sort of expectation and some consistency, saying, okay, if I commit to this person, they're gonna at least pay me X amount of dollars every week. And that's a good idea for you because you lock that person in, you can continue to work with them. And over time they become dependent on that income. That's what they get used to. And also they can account for it. They can account for those hours they take on a project. They know that, hey, five hours of their week is being used on your work. Now, five hours is just an example. You can make it 10 hours, seven hours, up to you. So instead of paying them a full time salary, you're paying them a pretty minimum stipend to kind of have them as a retainer. And of course, you can give them five hours of work to do every week. And no matter what the job is, you can think of something that can help your business that's worth five hours a week. If we go back to the example we started with, with a designer, somebody designing your website, that person can definitely help you out with marketing materials. You know, designing Facebook ads, blog post images, maybe cleaning up your logo, cleaning up the regular assets you have on your site. You can give them a list of tasks to do and say, hey, here are the list of tasks. You can do these for the next month in each five hour block, right? Five hours a week. And of course, these could be regular tasks like blog post images, like thumbnails for your videos, like flyers for your events, or you know, swag that you're designing. Whatever it is, it's not like you're spending money worth five hours a week on nothing. They're gonna do something for you and produce some results for your business. Now what this retainer does is that it holds them with you, keeps them with you, and then if you need extra hours, you could say, hey, charge me extra hours that week on top of the basic five. We've even done this in our team at Webinar Ninja with highly, highly, highly skilled engineers, people that are highly sought after. And they're looking for some exciting projects to work on, products that can get behind they can't commit full time to your project because they have a highly paid and highly respected job. But on the weekends they want to work on something cool and fresh. They can commit five hours a week and they can make a tremendous impact on your business because of their expertise, because of their insights. And they can become sort of an advisor to your company at a pretty low rate. So having people on your team that are part time can definitely work. But. But you gotta make sure it's a win win. Sometimes we just wanna make it a win for us, but not really a win or a total commitment or some sort of commitment to the employee. They need to bank on certain hours of work every month so they can pay their own bills and move up in their career. They don't wanna sit idly, they wanna keep on working.

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To wrap up today's lesson, I want to share with you a story from my own career. For my own business. I've hired a lot of people along the way. I've let go or I let them get away. Great employees. Because I didn't have this system in place. I just paid them hourly. And then when there was not enough work, they of course committed to another company or another project. I learned that consistency is really important in a relationship. You want to make sure that the other party has that consistency, even if that consistency is like, hey, this is the minimum consistency. And then it can get more, but not less than this amount. Thank you so much for listening to the Hundred Dollar Ba show. Hit subscribe so you don't miss a beat. By hitting subscribe, you get access to all our episodes in the archive. Over 1200 episodes. Tons of lessons for you to review. But you only have access to them when you hit subscribe and have access to our feedback. So whatever you use to listen to podcasts, hit subscribe right now. You'll also get our episodes automatically downloaded to your device. That way it's ready for you when you're ready to listen. All right, before I go, I want to leave you with this. Even if you have this basic minimum retainer for part time employees, it's a lot harder to hold on to part time employees for the long run than a full time employee. They have one foot out all the time. Okay, so just keep in mind Keep in mind, if you have a part time employee that you really like, think they're great, work towards trying to get those hours upped, those minimum hours, and maybe one day you can make them a full time employee. But show your commitment and increase your commitment as much as possible. All right. Thank you so much for listening. I'll check you in tomorrow's episode. Free Ride Friday. I'll see you then. Take care.

USAA knows dynamic duos can save the day like superheroes and sidekicks or auto and home insurance. With usaa, you can bundle your auto and home and save up to 10%. Tap the banner to learn more and get a'@usaa.com bundle restrictions apply.