The best ways to hire staff in these uncertain times

Taking on permanent staff for your business comes with risks, but there are alternatives says David Prosser.

Chefs in a kitchen
Temporary staff can help you cope when business gets busier
(Image credit: © Simon Dawson/Bloomberg via Getty Images)

Many small businesses face the same dilemma: improved performance since an easing in the Covid-19 crisis has lifted confidence and encouraged expansion – but committing to investment in growth is difficult at this time. Around 40% of small and medium-sized enterprises want to hire new staff before the end of March, but almost two-thirds are worried about spiralling inflation, according to recent research by Barclaycard.

These are uncertain times for many business owners. If they hire new permanent employees to take advantage of growth opportunities, will they regret that decision in a few months’ time? If taking on new staff doesn’t drive revenue growth quickly enough, firms may struggle to cope with cost pressures. The worst-case scenario is they end up having to lay off new hires, with all the expense and stress that cutting jobs entails.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.