4 min read
When it comes to working capital, the relationship between your business goals and your staffing needs can be complex. In many cases, the path to increased revenue is one that must be paved by the hard work of a skilled worker — one you’ll have to add to payroll. Paying that skilled worker? Well, that requires working capital.
Of course, the problem isn’t simply having enough working capital to manage payroll increases. It’s putting the time and money into attracting, hiring, training, and then keeping a skilled employee. Cutting corners at any one of these junctures can jeopardize your investment, leaving you and your business struggling to find more capital to start the process all over. Follow these four steps to hire the best and protect your capital investment.
There are always going to be times when staffing needs are completely unexpected. Employees can quit, become ill, or fail to meet your expectations. But that’s not always the case. Seasonal upswings, store expansions, or operational goals, like an increase in marketing efforts all represent circumstances that may require increased staffing in the wake of serious planning.
Though the hiring process can vary based on your location and business sector, on average, it can take just under a month to find the right candidate – longer if your business requires an extensive vetting process or the position is in high demand. Onboarding and training can take another few weeks.
That means it can take two months or more just to get someone in the seat and ready to meet the challenges ahead.
If you anticipate there will be a role to fill, don’t wait until the last minute to start reviewing resumes and scheduling interviews. Doing so can lead to hasty decisions that can impact your bottom line in more ways than one.
You likely have the final say on who will join your team, but you may want to consider engaging some of your existing employees in the hiring process. Why? In order for a team to be successful, the members must work well together. When that doesn’t happen, you run the risk of losing long-term and new employees.
Once you’ve identified a few prominent candidates, bring in relevant key players for a group interview to help see how a future employee will fit in with existing ones.
A strong onboarding process leads to happier, more productive employees who stay longer. Why? Onboarding is your chance to give a strong and lasting impression about everything from company culture to individual performance expectations.
As such, your onboarding efforts should be thoughtful, consistent, and begin as soon as an offer is accepted. Have new employee paperwork ready before your new team member joins. Provide new hires with a clear and logical overview of orientation and training. Most importantly, set clear expectations about your business needs over the next few days, weeks, and even months.
Rushing or skipping a structured onboarding process can leave new employees feeling stressed, undervalued, and out of place in their new environment – all sentiments that can have them looking for a new job sooner than you’d like.
The relationship between your working capital and your hiring needs depends on your time in business, the nature of employment, and the skill level of the prospective employee.
For example, a startup looking to hire their first management-level employee will face drastically different challenges than a seasoned business owner looking to bring in temporary staffing for the busy season.
If you find that you don’t have enough working capital to carry out the hiring process, whether it be working with a recruiter, establishing an onboarding process, or simply financing payroll, then you may want to consider one of the many funding options available to today’s business owners.
Keep in mind that some options may be better suited for your needs. For instance, a short-term working capital business loan will likely be more beneficial than a credit card, even though both represent a path towards working capital.
Similarly, rates and fees will also play an important role in determining which lending options will yield the best ROI when it comes to attracting and keeping top talent.
Another consideration to keep in mind is time to funding. Though some options, like QuickBooks Capital can be available in as little as 1-2 business days, after approval, other options, like SBA loans, can take several months to secure.
Your employees are the key to your success, and hiring and keeping top talent will help you build your brand, grow your product or service offerings, and ultimately increase your bottom line. However, before you can realize the benefits of strong staffing decisions, you must take the financial and cultural steps necessary to attract, hire, and onboard your next company VIP.