Kaizen Time: Practical Strategy for Better Business

The Cost of Growing a Team

Written by The Kaizen Team | · February 02, 2026
 

Growing your team changes more than your payroll total. In this conversation, we talk through the real cost of adding employees, from payroll taxes and benefits to compliance thresholds, technology, and hiring friction that can quietly impact cash flow if you’re not planning ahead.

As your business grows, hiring decisions start to affect more than wages. Payroll taxes, compliance thresholds, benefits, and systems all come into play faster than many owners expect.

Key Takeaways

  • Why a $50,000 salary can feel closer to an $80,000 decision

  • How employee count triggers new rules, benefits, and compliance requirements

  • Where payroll systems and self-service tools affect hiring and retention

  • What to think through before adding your next employee