Should You Hire Full-Time or Part-Time Employees for Your Small Business?

Here's how to figure out the right approach.

If you're getting a small business off the ground, one of the most important tasks you'll need to tackle is staffing it. Chances are, you can't do everything alone, and you'll need employees at your side to ensure that things run smoothly.

When it comes to staffing your small business, you have choices. You could look to full-time workers, or you could staff with part-timers instead. There are pros and cons to each option, so it's important to think things through.

The pros and cons of full-time employees

The upside of hiring full-timers for your small business? Having perpetual coverage. The consistency of full-time workers can make your business easier to manage and help it grow. Also, you may find that full-time workers are more dedicated to their jobs because their work for you is their sole source of income. Part-time workers may not put in the same effort.

On the other hand, it costs a lot more money to employ full-time workers than part-time employees. Not only will you have to spring for higher wages (since you'll be paying for 40 hours of work per week, not 15 or 20), but you'll also need to be prepared to offer up a benefits package. That package might consist of perks like paid time off for vacation as well as illnesses, subsidized health insurance, and a retirement plan. With part-time workers, you may not have to offer those benefits, and that could be a huge source of savings.

The pros and cons of part-time employees

Hiring part-time workers may be a more cost-effective option for you if money is tight and you're not convinced you need people on staff for 40 hours a week. Plus, if you hire part-timers, you won't necessarily have to bear the cost of things like health insurance and other benefits.

On the other hand, you might run into busy periods where you need more hands on deck. If you're limited to part-time workers, they may not be able to step up and assist because they're committed to other jobs.

Also, part-time workers may not be as dedicated to the job since it's not full-time and doesn't come with benefits. And so you may not get the best value for what you're paying.

What's the right call?

The decision to hire part-time workers versus full-time employees should boil down to what your needs look like and what your small business can afford. Take a look at your checking account and books to see what wages and benefits you can swing. If you don't have a lot of funds for payroll, you may want to start by hiring part-time staff and promoting some people to full-time as your finances allow for it.

Of course, you may also decide to staff your small business with a few full-time employees, but a bunch of part-timers as well. That's not necessarily a bad call, but in that case, don't be shocked if your part-timers petition for full-time work to boost their pay and get benefits. That's a potentially tricky situation you may end up having to navigate if you decide to employ both types of staff members at the same time.