Friday, March 9, 2012
WHEN TO HIRE NEW STAFF
So the economy is starting to improve and new business coming in...as a business owner one of the most important tasks you are going to be faced with is managing your workforce. It's your job to make sure you have the right people--and the right number of people--to keep your company running smoothly. Now let's say your business is growing and you're sensing you need to hire new employees. How can you really be sure the time is right to bring in additional staff?
Here are the clues that tell you the time is right:
1. Your employees are working very hard--perhaps too hard--and they're letting you know--or complaining--that they have too much to do. Complaints of this nature aren't uncommon, but your task is to determine if they're legitimate.
How do you determine if the “working too hard” complaints are legitimate? Try talking to your employees and ask them to validate their issue of being "overworked." Then look at attendance and productivity indicators to substantiate their claims. If what you find confirms their feedback, then you might decide to reorganize and restructure roles and responsibilities to better deal with the workflow. Or you could use your new knowledge as a guide to hiring additional employees.
2. Employees claim they want to take on more tasks or spend additional time on current ones--if only they had the time.
3. The growth curve for your products or services is increasing, and you identify that as a positive trend, not just a blip on the consumer radar.
4. You see an opportunity for growth and expansion in your industry or related industries, and decide that now's the time to take a calculated risk to expand. But current employees aren't available to assume additional responsibilities or don’t have the skills to implement the expansion.
5. You determine that your employee's existing job skills and knowledge are fine for your company’s current level of productivity, but to expand, you'll need either increased skills and knowledge or a new and different set of skills and knowledge.
6. Revenue is at or above target and you project it to continue; other than financially rewarding yourself and/or your employees, you wonder what to do with the increased revenue.
Always remember there are many factors in addition to financial issues when considering hiring a new employee. Financial factors don’t only include being able to pay the new employee’s salary. The cost of benefits need to be factored in in addition to workspace costs. Once you determine you have the finances to make the new hire you have to consider other factors such as training the new staff and the effect on the workplace environment.
Remember when you hire someone new you have a responsibility to that person. They might be leaving another stable position to come work for you. Make sure you considered all the factors and make a decision that is right for your business and everyone involved.
STAY TUNED: Next week “HOW TO HIRE NEW STAFF”