Every business faces the same question at some point: How do you know when it is time to hire?
On one hand, hiring additional staff costs money and the more people you bring on, the less money you have available to invest back in the business. Right? Well, first, you need to change your mindset. Recognize that hiring new people is an investment in your business. Like purchasing more efficient machinery or faster computers, hiring quality employees can help your business grow more successfully and steadily.
Here are a few signs that it’s time to expand your team.
You’re paying a lot of overtime costs. You might spend more money on overtime costs than you would to hire a new employee to distribute the workload evenly.
In the short-term, overtime is less costly. Assuming you have staff that is willing to take on extra hours, offering overtime to existing employees might help you cover the workload, but, in the long-term, overtime costs add up. Excessive overtime can also result in decreased productivity, work quality and employee engagement.
When the heavy workload is more than a temporary spike, you are better off hiring additional staff.
All work and no play can cause serious burnout. How can you tell if your employees are entering burnout mode? Look at the number of sick days being used. High stress and lack of sleep lead to illness ̶ right at a time when you can’t afford to have people out of the office.
When work hours are steadily increasing just to complete basic tasks, it’s probably time to hire.
When business owners and executives spend their time focusing on survival rather than growth, the whole business suffers. Your overworked employees surely appreciate your willingness to jump in and lend a hand with collection calls, invoicing, reconciliations or assisting with month-end close. But do that too often, and you’ll have less time to spend on the growth activities that will take your business to the next level.
A good boss knows when to roll up his or her sleeves and pitch in, but if you’re doing the work of three employees, it’s time to hire.
Is trying to be a jack of all trades turning you and your staff into masters of none? In a rush to get all of the work done, you and your team may be making more mistakes and lacking time to re-check work.
Too many competing priorities can lead to work suffering across the board. So, let people focus on what they were hired to do and what they are good at. Hire someone else to take care of the rest.
Hiring is never a decision to be taken lightly. Employees cost money, from wages to benefits and other office resources. However, the growth and success of your business depend upon hiring good people who can handle the day-to-day tasks, allowing you to focus on pursuing new ideas or clients.
Hiring may require some sacrifice in the beginning, but investing in the right employee can produce ten times their cost when they help turn your struggling business into something greater. Keep in mind that you may not need to hire someone 40 hours per week. Even a part-time investment can really pay off. So take the time to hire the right person and free yourself up to focus on the tasks that will truly help you succeed.
For more tips on workforce planning, check out our eBook.