Why is staffing my small business so hard in 2025?
As the market continues to fluctuate, many business owners are feeling the pressure when it comes to hiring and managing staff.
One common challenge I’ve heard recently is how difficult it can be to optimize your support with full-time employees, especially when salaries feel like a heavy burden during unpredictable times.
With over 120 people on my team and having worked with nearly 1,000 businesses on their staffing strategies, I’ve learned a great deal about what works when it comes to building the right team.
In this blog post, I’ve shared some insights and tips that could help you navigate today’s uncertain economy with confidence.
Full-Time Hire vs. Contractors: Which is the Better Choice for Your Business?
The key question when evaluating whether to hire full-time employees or contractors often boils down to 1 simple idea: What value are you getting from your team versus what you’re paying them?
When considering these options, it’s essential to understand the financial implications of each choice. Here’s a breakdown of what the numbers typically look like for a small business:
In-house Operations Support: $70,000/year
For an average in-house operations employee, you’re looking at a base salary of around $70,000 per year before adding benefits, paid time off, and payroll taxes. This can add up quickly.
In comparison, contractors can often deliver the same support for a fraction of the cost. For example, when you hire contractors for admin support through The Boutique COO, the average cost is around 3.5 times cheaper than the annual salary of a full-time operations person.
In-house Marketing Support: $85,000/year
When it comes to marketing, hiring someone full-time can cost you around $85,000 per year. For small businesses that rely on social media and email marketing (who doesn’t these days!), this expense can quickly add up, especially when you consider benefits and overhead.
On the other hand, outsourcing social media management and email marketing to contractors is often more cost-effective.
For fractional marketing support through The Boutique COO, you can get content creation, Instagram management, and weekly email marketing for around $24,000 a year - that’s 2.5 times cheaper than hiring a full-time marketing employee.
Let that sink in.
Consider Your Income Volatility: Full-Time May Not Always Be the Answer
Another factor I discuss with business owners is the volatility of their business’s revenue.
If your business sees ups and downs, or if you’re operating in a slow season, paying for full-time employees can feel like a significant financial commitment.
Full-time staff are ideal when you have consistent, high-volume tasks and a steady workload. However, if you’re looking for a more flexible role that involves various tasks, or if your business experiences fluctuations, full-time hires may not be the most cost-effective solution.
Plus, you’re stuck with a fixed cost, even during a down month.
Hiring and Managing Your Team: The Challenges of Full-Time Staff
At The Boutique COO, we hire less than 0.01% of applicants. That means we sift through 1,000 applications to find just one person who meets our high standards. The hiring process is incredibly selective, and for good reason - we need to ensure our team members can deliver the kind of support our clients need.
Now, if you’re looking for a "unicorn" employee who can handle every single task, the hiring process becomes even more challenging. Finding someone with the proper skill set, personality, and expertise to fill a generalist role is extremely difficult. Not to mention, once you’ve found that person, managing them is an entirely new responsibility that many business owners don’t necessarily enjoy or want to take on.
I understand that these conversations around staffing can be tough. Letting go of team members or downsizing is never easy, especially when you’re trying to support your team and provide job opportunities.
But it’s important to ask yourself: Is your current team structure serving your business’s needs?
Local Knowledge: Do You Really Need It?
I know you might be thinking, "But local knowledge is so important for my business!"
We’ve proven time and time again that you can hire top-tier outsourced support, regardless of your business's location. There is so much information available online that an educated individual can find to make your business stand out locally.
That said, if you’re determined to hire locally… we’re happy to help you design a job post and run a hiring process. Our team has the experience to guide you through every step of the hiring journey.
Need Help Navigating Your Business Staffing Strategy?
If you’re still unsure whether a full-time hire or a contractor is right for your business, we’re here to help. Grab some time with us- we’re more than happy to give you our input at no cost.
Regardless of the path you choose, our goal is to help you navigate the challenges of staffing in this unpredictable market. We’re here to support you as you make the right decisions for your business.
