A key decision growing small to medium businesses (SMB) faces is “What is the first hire for IT for an SMB?”, or “When should we hire an IT resource?” Small enterprises often start with a person who knows computers better than anybody else, and who by default becomes the “IT Tech” or something similar. They may be young and more technology current, or the CAD engineer that has the best computer, or the hobbyist that tinkers at home. The organization is strapped for funds, buys PCs that are on sale at Best Buy, and cobbles together something that works most of the time. Users are appreciative when the IT specialist finally gets around to looking at their issue and rigs a solution from duct tape and chicken wire. Eventually the organization grows to the extent there is a clear need for more capable and available help. The person responsible for IT now views it as a burden, and the business needs more reliable and capable information technology.
So now the decision: “Should we hire a dedicated IT resource?” and leaders faced with this are usually thinking about one person who does ALL the IT.
There are some critical points to consider when making the decision.
- Information Technology is a broad field, and depth is needed in multiple areas including security, email, databases and reporting, PC help desk, network components, servers, cloud applications, hardware, and more. Being a single jack of all trades and master of none is a recipe for further poor decisions, wasted funds, and lost data or access. Any errors in these functions will create a multitude of issues in the business.
- Certain ratios are helpful to understand. In most businesses, you would have at least 40 users per IT person, and no more than 75-100. This can vary by industry, systems and software deployed, and the number of locations supported. In fact, if you are reading this to help you make the decision now for your growing business, it is likely you have at least 30 users and various issues with IT, like low reliability, long resolution times, security issues, etc. We have determined that you need nine or more employees in IT to get the special focus and depth needed to maintain systems adequately.
- Who is going to oversee the IT person? To oversee an area, you need a basic understanding of what is being accomplished. The IT resource will bring requests to spend money and take certain actions that you will not be equipped to decide competently. Every day may feel a bit like a trip to the auto repair shop, with more costs than you planned for and things you’re not sure you need. We have seen what looks like an “IT Toy Store” in some businesses, where the IT team purchased expensive gadgets at company expense and had no ability to even use them.
- Too Expensive – In order to meet the needs of the diverse areas of point one, you cannot hire in a way maintains a ratio of point two that makes economic sense. You would need about nine employees in IT, but you see the obvious high costs of having nine IT employees supporting 40-80 users. Not only is it expensive, but you also only need them part time and at unpredictable points; an IT security specialist for four hours a month, an email specialist for six hours per month, a help desk person for eighteen hours, etc. Most of the time they would be sitting and finding new ways to spend your money.
I need solid IT, so what other options do I have instead of hiring an IT Resource?
For basic IT needs of a small to medium sized business, you should engage a Managed Service Provider (MSP). These firms (when qualified), have all the skills needed, and specialized tools, available to you when needed. By doing this, you will get:
- A whole team for about the same cost as a dedicated IT person. You will get the broad and deep knowledge needed for a solid IT platform for your organization.
- Multiple people and views of a problem – reduces risk of a key employee leaving with the “keys to the kingdom” and being stuck with a single perspective of any problem.
- Contracted for results that business leaders can understand, so the impact of a lack of knowledge about IT is minimized. Instead of making decisions about expensive tools, you are focused on making business decisions that will make a clear difference.
- A win-win relationship – The MSP is being contracted for reliability and safety of IT systems, and user productivity as a result. They are incented to build systems that are reliable, because when you have an issue, your profit and capability is affected, but so is the MSPs. In fact if you get an invoice and a report with zero incident or problem tickets – congratulations!
- Pay for just what you need – You are paying for results, not hours, so just focus on that and don’t worry about idle employees.
Then what is the First Hire for IT for an SMB?
So, if we are not hiring the help desk tech, what is the first hire for IT for an SMB?
A business or data analyst. If you have some funds to invest that will make a difference, find a person who can understand your business process, your data and have the skills to query it. MSPs will provide the baseline needs of the platforms and users and do it better than an employee. But because they work with many organizations, they will not usually be as engaged about the specific data you collect and how you use it as a skilled employee would. This person will be part of your team and be listening for where data will improve the business process. They will learn your data and understand your ERP system, your spreadsheets and Access databases, and help you improve and leverage all of these. This improves your understanding of the organization and decision making.
Think of it like a car. The MSP makes sure your car is completely ready for a long trip with no issues and follows in a van with a bunch of mechanics and tools. The data analyst will be in the car with you looking at maps, great places to go, hotels, and restaurants to guide you on the trip. Result: Best trip ever!
In the end, you will have a team of skilled people, and one who is highly engaged in your business. You will have the best of all worlds and be ready for growth and competition.
How can BizTechSherpa Help?
BizTechSherpa is a guide to business leaders on these types of decisions. We can assess your business AND IT operations and develop a plan to align these. We have partners who are MSPs and recruiters, to help you assemble the team necessary. So when you need IT help, we are a great resource to engage to improve your organization’s IT function.
Contact us today to improve your IT!