A question often asked by every entrepreneur for which there is no simple answer: Is it the right time to hire new staff? While no business organization wants to unnecessarily pay for extra staff, the correct judgment on when to increase the workforce in proportion to increased workload is a very important decision to make for any entrepreneur.
Here are a few things that must be taken into account while making a decision on whether or not to hire new employees:
1. Overworked staff
Look at the daily timesheets and attendance sheets of your employees. Are they working on holidays and do they regularly work past the office timings? Have they started complaining to you about it? Well, then this is the appropriate time to reorganize your work structure by redistributing roles and responsibilities. It is probably a good idea to get extra people on board.
2. Growth of the company
As the company grows and the demand for its products or services increases, the need for additional hands to take up the extra work is a logical consequence. Entrepreneurs, before hiring additional staff must make sure that the growth of their company is on a sustainable positive trend instead of just a seasonal effect.
Sometimes it so happens that demand fluctuates but this should not be correlated with sustained growth. Hence proper research into the reasons why the company is growing must be made.
If the company has gained a higher register in the pending tasks, then the entrepreneur must examine the situation. Is it because of the employees are not being productive and not managing their time properly or because of a really compelling need to hire extra staff? If it is a new recent phenomenon, then it is probably the latter.
4. Need for expansion
The current employees have their educational and professional experience at a certain set level needed by a start-up. But as the company grows, more qualified and experienced people might be needed on its staff to expand it further.
Without this additional hiring of skilled and experienced staff, expanding a small business would be difficult. Also if the company wants to branch out to related industries, it would need additional skills and qualifications of its staff to do the same.
5. Increased revenue
If your company is exceeding the targets and there is a surplus of revenue- bonuses, paying the investors, and purchasing new materials are all fine but additionally, this revenue could be well utilized to hire additional staff. This would allow you to further your revenues and lead to more growth for the company.
This is simply stated as – if the company is making more money, then it is time to hire more of the similar kind right people for your company. Finally the decision to hire new staff must be thoroughly researched. Instead of letting people go at a later date, hiring must be done intelligently.
The new hires must be well aware company’s goals and must be able to fit in. Most importantly, the transition for the old employees to bigger roles and the new employees to their roles must be cushioned.