When Will You Need an Employee?

Many times, franchisees in Canada start their venture off on their own and run it that way or with an invested partner. As part of the business building process, it's the owners who put in all the work to get the operation up and running. It's hard work, but it is also very rewarding.

Running your new Canadian franchise on your own, if you can, is a financially sound move in the early days. An employee costs money, and cash flow shortages due to subpar expense management is a common reason for a business to fail. However, there will come a time when you simply can no longer run your business yourself. While it can be a bit difficult to decide when is the time to take on an employee, there are clear signals you can keep an eye out for.


You're receiving complaints

When customer service is poor or you just can't keep up with the services you promise, your business will suffer. The input from your customers is valuable. Listen to what they are saying and decide whether an employee could help with that issue. If you can't keep your website inventory updated or provide good service consistently anymore, an employee might be needed.


Your growth has stalled

Your business forecast should display serious growth those first few years. It can be wise to keep your business slim at times, but if you find that you are saying "no" to potential customers more often than not because you cannot handle more work, it's time to hire someone who can help you scale your location.


You're not working on the franchise

Working in your franchise is how you develop relationships, so it is important. But working on the franchise means you are looking beyond the daily need to offer your service or product. When you just don't have the time for future planning, networking, bookkeeping, marketing and the other activities that will support your franchise, hiring an employee can lighten your load so you have time to tackle those areas.


You no longer remember what a vacation is

A strong work ethic is vital for a successful franchisee, but everyone needs that break sometimes. If you simply never have the time to take a step back, your business won't be as healthy.

Hiring your first employee is a very important decision that you will one day make for your franchise. Use the signs above to decide when the time is right to take on that added expense.


Attracting Employees To Your Franchise

Statistics Canada recently reported that Canada is currently facing an employment crisis, with 1,037,900 jobs vacant in June 2022. The sectors worst affected are health care and social assistance, accommodation and food services, and retail. With so many franchises operating in these industries, many employers will be wondering what they can do to address the shortfall.

It is clearly a jobseekers' market right now and opportunities are plentiful, allowing savvy job hunters to select the job that best suits their individual circumstances and lifestyle rather than just the one that is closest to home or offers the best salary. This means that a modern recruitment strategy is needed, and employers need to consider the overall value proposition that they can offer.


There are a few ways in which you can look to address the employment crisis:


1. Internal Progression and Restructuring

The first step when a business is holding multiple vacancies is to consider ways of redistributing existing staff. Long-term, loyal staff are the backbone of the business and may be willing to consider career progression opportunities within your business. It is always wise to discuss ways in which their existing roles could be altered to offer them new opportunities, a greater range of responsibilities and an increase in salary as utilizing existing staff more effectively could reduce or eliminate the need to hire new employees. This option has a threefold benefit: it motivates and rewards existing good performers, reduces costs as you may not need to hire new staff, and reduces the time spent on advertising, interviewing and training new people.


2. Clear Roles and Responsibilities

If internal moves and re-organizations are not feasible and new staff must be found, it pays to be absolutely clear about what you will need them to do. Having defined roles and responsibilities for each position not only simplifies the recruitment process, but also ensures that there are no gaps where work will not get done.


3. Employee Value Proposition

It is vital that you consider the type of person you are looking to attract to your business and understand their motivations for seeking work so you can tailor your job posting to appeal to the right demographic. You need to understand what drives jobseekers in your industry to ensure that you can deliver what they need. It may be a higher salary than your competitors, but more likely, it will be opportunities for career progression, job security, and depending on the industry that you are operating within, flexible working or capped hours.

Understanding what jobseekers need from their position helps you to target the right people by emphasizing the benefits of your offering from the outset.


4. Advertising In The Right Place

Finally, you need to advertise in the right place to attract the type of person that you need. Understanding the local job market and the type of person that you need will help you to tailor your strategy to increase the likelihood of success.