Hire employees to grow your business

By Pierre Belhache

July 02, 2021 - 4 mins reading

Want to grow your business by hiring an employee? Find out what you need to consider before taking the plunge! 🚀

First of all, hiring an employee may be essential, depending on your business sector. For example, a restaurant owner will need employees right from the start.

In other sectors, it's only when you can no longer meet demand on your own that you'll need to recruit. 🕵️

Employee office

The criterion to consider before hiring is obviously your business plan. 💸 Your company must have sufficient financial visibility to be able to integrate the real cost of the employee. So you need to budget for the hiring of this staff by anticipating the number of months of wages and social security contributions this represents, and then consider the additional sales you'll need to make (in the short or medium term) to cover the cost of the employee (including social security contributions).

You need to keep in mind that the purpose of hiring an additional employee is to generate additional sales. 📈

However, if you're facing an increase in customer demand that's one-off or uncertain, and you don't have long enough financial visibility to hire on a permanent contract (CDI), you can hire on a fixed-term contract (CDD). 👔

The advantages of a permanent contract :

An employee's work costs a company less than that performed under a fixed-term or temporary contract.
This createsa stable team that is involved in the life of the company, and also avoids turnover.

The minuses of a CDI :

The cost of dismissing a worker with an open-ended contract is high

The advantages of a fixed-term contract :

It gives the company flexibility: it hires according to fluctuations in activity
It does not generate fixed costs over the long term, as the employee on fixed-term contract will not remain with the company indefinitely.
There are no redundancy costs if you are not satisfied with the employee's performance: you can either wait until the end of the contract, or terminate it in certain well-defined cases.

The downside of a fixed-term contract :

A higher cost due to bonuses paid to the employee (precariousness bonus, etc.).
The employee can leave his or her job at any time (as long as he or she respects the notice period).

Good to know! 💡

If you're looking to hire, the French government has a number of grants available, whatever the contract or profile!

For example:
- Job placement assistance: this is financial assistance paid to an employer for the hiring of a disabled person on a permanent or fixed-term contract of 12 months or more.
- Lump-sum aid to employers (AFE ): this is a lump-sum aid capped at €2,000 for hiring a jobseeker aged 26 or over on a professionalization contract.
- TPE jeunes entreprises aid: this is financial aid paid by the government to very small businesses (TPEs) with fewer than 11 employees hiring young apprentices, aged under 18 on the date the contract is signed.