One of the biggest indications that your business is growing is when there’s a genuine need for additional manpower. As your operations get more complex and the demand for your products or services increases, having extra hands to manage the workload isn’t just beneficial; it’s necessary. While expansion is a positive milestone, hiring and training new employees can be a significant business expense. The onboarding process is often resource-intensive, involving a range of financial and logistical requirements—from setting up compensation systems to preparing the tools new hires need for a smooth start. And yet, each component is crucial for setting new employees up for success.
Thankfully, financially preparing your business for new hires can help you manage these costs effectively and avoid cash flow disruptions. Here are some ways to ensure you’re financially ready when it’s time to grow your team.
Calculate the Cost of Employment
Understanding the full financial impact of each hire is essential for maintaining control over your business’s operating expenses. After all, the true cost of employment goes beyond simply calculating monthly wages. It also includes mandatory contributions such as government-mandated benefits, employer taxes, and any voluntary benefits your company may offer (e.g., health plans, allowances, or retirement contributions). You’ll also need to account for indirect expenses, such as training costs, paid time off, and the use of business resources. These hidden costs can add up quickly and affect your margins if not anticipated early.
As such, determining the total cost of employment for each position enables you to assess how many employees your business can afford—and at what compensation levels. This way, you can expand your team responsibly without straining your financial health.
Secure Enough Capital
After calculating the cost of bringing on new hires, the next step is to ensure you have enough capital to sustain these expenses. This is particularly important during the onboarding period, when productivity may not yet justify the cost. Depending on your revenue cycle, you may need to prepare for one to three months of negative return while your new hires ramp up. Doing so creates a financial cushion that protects your business from short-term strain and allows you to invest in employee integration without hesitation.
Having adequate working capital allows you to cover payroll, onboarding expenses, and other operational costs without disrupting cash flow. This might mean drawing from retained earnings, setting aside a portion of your monthly profits, or arranging access to short-term financing such as a business line of credit. With proper capital planning, you’re reducing the risk of delayed payroll, missed tax obligations, or interrupted business operations.
Streamline Your Payroll System
Even if manual payroll methods worked for your previously small team, they become error-prone and inefficient. As headcount increases, it becomes more difficult to process salaries accurately. That said, investing in a reliable payroll system can help you manage compensation, deductions, and reporting obligations more accurately and consistently.
Maya Business Deposit is your reliable partner for modern payroll management. This online business banking solution by Maya Business is an all-in-one payment platform that not only lets you easily disburse your employees’ salaries, but also your suppliers’ payments. Maya Business Deposit also boasts the highest business banking deposit interest rate in the Philippines, which is at 2.5%. That’s 20 to 25 times higher than the average bank.
What’s more, this business deposit account doesn’t require a minimum balance and allows you to pay your employees or suppliers via InstaPay, PESONet, or Maya for free. With Maya Business Deposit, business banking online has never been more seamless, affordable, and rewarding.
Update Your Budget and Forecast
Hiring new employees introduces recurring financial obligations that must be accurately reflected in your budget. Without adjusting your figures, you risk underestimating your expenses and overestimating your available cash. As such, once the cost of employment is clear, it’s a good idea to revisit your operating budget to factor in the added payroll, benefits, and onboarding-related costs. This ensures that your financial plans remain realistic and aligned with your actual cost structure.
Then, update your cash flow forecast to reflect when those expenses will hit your accounts. This way, you won’t face liquidity issues during payroll cycles or periods of slow revenue. Finally, re-evaluate your revenue projections so that your expectations account for the ramp-up period that new hires typically require before contributing to output or sales.
Ensure Compliance with Tax and Regulatory Requirements
Each new hire adds administrative and financial responsibilities tied to tax and regulatory compliance. These include proper employee classification, correct withholding of government-mandated contributions, and timely filing of employer-related tax documents. Overlooking these obligations doesn’t just create legal risks; it can also lead to financial penalties and disruptions in your operations.
From a financial standpoint, compliance should be treated as a non-negotiable cost of doing business. Therefore, budgeting for mandatory contributions, such as income tax, social security, health insurance, and other statutory benefits, for each new hire is essential. You should also be aware of any employer reporting requirements, registration deadlines, or documentation that needs to be filed with the relevant government agencies. Staying compliant protects your business from avoidable expenses and supports long-term financial integrity.
Bringing new people into your organization is a sign of growth, but it also comes with financial responsibilities that require careful attention. The onboarding process can place added pressure on your resources, but by taking a proactive approach to managing the costs involved, you can support expansion without compromising stability. With the right preparation, your business will be well-positioned to grow with confidence and control.
Improve Your Growing Business’s Financial Position with the Help of Maya Business
Sign up for Maya Business and take advantage of financial solutions that will help your growing business. Setting up a Maya Business account lets you open a Maya Business Deposit account, which you can use as your settlement account. It has an in-built disbursement tool that you can use for employee salary and benefit payouts. As mentioned earlier, it also boasts an industry-leading 2.5% per annum interest rate, allowing you to earn up to PHP 25,000 in interest per year on a PHP 1 million deposit.
Signing up also qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months, allowing you to have another funding source to further develop your business. Just use Maya as your primary processor for all wallet and card payments. The more you use our solutions, the better the loan offer will be.
Sign up for Maya Business today to enjoy the benefits of Maya Business solutions.
