MBA2281 Q&A Wednesday: Is it better to hire full time or part time employees?

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It's time for Dell Tech Day's annual sales event celebrating our customers with fantastic deals and benefits. Perks include Dell Rewards, free shipping, premium Support and more. PCs like the Dell 14 with Intel Core Ultra processors will help you do more faster and with a premium suite of monitors and accessories, you can upgrade your whole setup with amazing savings. Visit Dell.com deals. Hey oh welcome to the $100 MBA show. The place to be to build a business you want every single day 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 Webinar Ninja, an independent software company. I started with my co founder back in 2014 and today's episode is Q and A Wednesday. On Q and A Wednesdays we answer a question from one of you, one of our listeners. If you got a question you want to ask, go ahead and email me over at omar100mba.net Today's question is from Paul and Paul asks, hey Omar, I have a budget to make some hires. I can either hire three or four part time hires or one or two full time hires. My business is scaling up and I want to meet demand but I'm not sure if it's better to make part time hires or full time hires. I on one side I can hire several people to do different things with a part time hire but full time hires seem to be more committed. Would love your advice on this topic. Thanks so much for everything you do Paul. Paul, thanks so much for the question. I really like this one because every business owner is going to have to make this choice, especially in the beginning and as they start scaling their business. I've made this choice several times. I still make this choice. And the points you bring up are, are valid. But I'm going to offer a different way to look at this, a different way to evaluate which choice you should make. It has less to do with the pros and cons and more to do with what you're going to get in return. So let's get into it. Let's get down to business. So Paul asks in today's Q and A Wednesday, is it better to make part time hires or full time hires? He's got a budget. He can hire more people to do more things if they're part time, but if they're full time, he may not be able to make as many hires, one or two hires max. And, and yes, there are pros and cons to both of these and Paul alluded to them when he asked the question and it's true. I do feel that full time hires tend to be more committed. Now I don't want to say this is a fast and hard rule because I've had part time hires or part time team members that work hard, that do a great job, that do a better job even than some of the full time hires I've had. And I understand where Paul's coming from, where like you know, a full time hire, it's their livelihood, they need to take it seriously. It's not something they're doing on the side. But that's kind of assuming that people that do part time work don't need the, of course they need the work. That's why they're working. And in my experience I have found that it's really just a individual attitude. Right. Some people are just hard workers, really believe in commitment, have a high level of standard for themselves and they uphold that standard. And that's something you're going to have to look for and interview for in the recruiting process. Now I want to take Paul's situation and talk about a different way to look at it. Okay. He can either make, you know, several hires with part time or a few hires, one or two hires maybe with full time. And in my opinion, the best way to evaluate this situation is to take a look. What will you get in return? What are the benefits you're going to get? And I'm talking about the bottom line. How will your business grow, expand, make more money, get more customers, be better with either option because it's going to be specific to what you're hiring for. So say for example, I make three or Four hires in my marketing department and they're part time hires, but they're critical roles like copywriting and someone to run my ad campaigns and maybe somebody who is creating my videos. I know that if I invest in these areas it will equal more customers and therefore by kind of splitting my budget to cover a greater area of marketing, my return on investment will be significant. Now of course, if you make a full time hire, it's not like it's insignificant, but will it be as significant? Let's say you make one full time hire, somebody who is going to run your ad campaigns. This is great and all and it probably will help you at some level. But without a great copywriter, without a great video person, it's going to be hard for you to get as much traction as much of an roi. So when you're making this decision, what you're trying to do here is maximize your return on investment. If you're going to put X amount of dollars, how many dollars will I get back and how long will it take? If I make three of these hires, it might take me three months to get a return on investment versus maybe a year with one hire. Now why is this important? Because velocity is power in business. If I can get my return on investment in three months, I can then reinvest in my business and make more hires and then do it over and over and over. This creates momentum. That allows me to have compound interest gains versus only getting really a good return on investment after a year. Then I can make a reinvestment into my business. Maybe I don't get another result for another nine months. You get the point. Your business is like a flywheel. You want this flywheel running as fast as possible, especially in the beginning, to get you momentum and traction and get you growing. So look at your scenario and say which one of these scenarios will get me a faster return on investment, a bigger return on investment in a short period of time. There's another thing I want to mention. If you're new to recruitment, if you're new to hiring people, then I actually do recommend going the part time route. Why? Because you need to find out if these people are actually qualified for what you need them to do, if they can actually do the job, and if you're not great at recruitment, meaning you know how to find that out before you hire them, then it's actually safer for you to do part time hires because you're not investing all your money, just part of it, right? And then they can prove their mettle and then they can Graduate to a full time hire if you wish and if they don't cut the mustard, you can easily find another part time person to see if they can and have them and then replace that team member. Compare this to a full time hire putting all your eggs in one basket, hoping that they're the best person for the job. If they come up short, you've come up short financially and you've lost time and it's back to the drawing board. So if you're not confident in your recruitment skills and most of us when we get started, we're not great at it, it's better for you to make part time hires, test the waters, see it as a probation period, see it as a way for them to prove their middle with a few projects. They if they work out fantastic, you can make them full time if you wish or increase their hours or even give them an increment or a raise. But one thing I want to mention again, the quality of your hires has nothing to do if they're part time or full time. I've had brilliant full time workers. I've also had full time workers that were a big waste of money. They didn't do much, didn't help the business and I had the same thing with part timers. I had part time workers that have done an incredible job, have impacted the business and our brand in a big way. And I also had part timers that just didn't do the job, just didn't cut the mustard, just didn't make it happen and actually fulfill the needs of the company. But it's easier to evaluate that when they're part time versus full time. It's like dating versus Marriage, right? Make sure they're right for you and your company before you put a ring on it.

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