hiring an employee for your home-based business

If your business has run into a production ceiling, than you’re likely thinking about hiring an employee.  But if, like me, you work from home, the idea of bringing a stranger in can make you feel more than a little uncomfortable.

When you work from home, the balance between business and personal life can already seem tenuous at best.  Throw in an employee and it could lead to chaos.

But there are strategies you can use to make the transition to home-based business with an employee an easier one:

Create a separate space. If you’re going to bring an employee into your home, it’s important to have a designated work only space.  But if you’re uncomfortable with a stranger coming through your home, you can take this idea further and really separate your workspace.  If possible, consider creating a separate entrance for your business, as well as designating or installing a separate, work only bathroom. (While these costs might seem prohibitive, they might still be cheaper than renting a space outside of the home for your business.)

Set boundaries. When you bring an employee into your home, it’s critical that you establish boundaries from the beginning.  What rooms can they go into, and which are off limits?  Can they use the kitchen to store or prepare their lunch, or would you prefer that they leave during their break?  Should they answer the phone or let it ring?  It’s likely that your employee is just as concerned about overstepping a boundary as you might be, so setting guidelines up front can not only help ease the transition for you, it will make them more comfortable as well.

Only bring them in on certain days. Having an employee is going to change your personal workflow, and not always in a good way.  You may find that there are certain tasks that you just can’t concentrate on with someone else in the room.  If you’re only hiring a part-time employee, be strategic about when you bring them in so that you still have time to yourself.  Keep in mind that you may not want to leave your employee at your home when you aren’t there, so it’s also critical to schedule days when they don’t work so that you have time to run errands or other tasks outside the house.

Hire someone you’re comfortable with. While hiring friends isn’t always advisable, it is important to hire someone you’re comfortable with.  I was fortunate in that I hired a former student who did happen to be a friend (but we work well together).  Because she had been in my home before, I was comfortable bringing her in to work.  If you don’t have the luxury of hiring someone you know, consider conducting initial interviews in a neutral space like a coffee shop until you know if this is someone you’d like to bring into your home.

Hire a housekeeper. One of the most stressful things about bringing an employee into your home (especially if you are a little messy) is the feeling of always needing to have your house “company” clean.  If the idea of having another person see your messy dishes stresses you out, then hiring someone to clean your home for a few hours a week is a good investment.  You’ll feel much more confident in bringing someone in to work for you if you know that the bathroom is always clean, the floors are always vacuumed, and the dishes are always done.

If none of these options seem feasible for you, but hiring an employee is the next logical step for your business, you’ve got two options: hire independent contractors instead or look for business space outside of your home.

If you’re planning on hiring independent contactors, it’s important to understand the distinction between them and an employee for tax and legal reasons.  Independent contractors do not work in your space or under your direct supervision.  You also cannot dictate the hours or days that an independent contractor performs work for you.  If you can break your work down into manageable steps, you can probably hand off piecework to an independent contractor.  Working with someone as an independent contractor can also be a good way to build a relationship and see if you’d potentially like to hire them as a traditional employee in the future.

And if all else fails, it might be time to consider moving your business beyond your home.  Obviously, this is an additional expense for your business, but if it boosts your productivity and allows you to add an employee that can boost your income potential, the expense can be well worth it.

Have you considered hiring an employee for your home-based business?  What’s holding you back?

3 Comments

  1. Do you have any advice on setting up all the related tax and employment forms? Bookkeeping is one of my weak points.

    Love the rest of the advice, especially the housekeeper part. I live in my studio, so there’s no room for separation, and everything is a total disaster of a mess.

    • I use Intuit Payroll service online. It’s $25 a month but well worth it, since it tells you what paperwork needs to be filled out, generates pay stubs, and reminds you to pay taxes!

  2. I have one employee and she comes for 8 hours, one day every other week. This is just right for me. Last year I had an employee coming for 4 hours every week and it was just too hard to be ready for her and have enough tasks for her to do. I also found myself rushing to get things done, so she could do her work. I really like the new method of having someone for the same amount of hours, but less often. =)