When to Hire New Employees

InterviewNew Year, New Beginnings.  For almost 20% of the workforce, this is really true as January is one of the top months for new job starts.  With over 87% of the workforce changing jobs within 5 years, that is a lot of turnover.  While it seems to be easy to leave jobs, how do you know if the job is worth replacing or if you need to add staff?

The old adage that people find work to keep themselves busy sometimes clouds what is really necessary versus people filling the day.  Social media also hinders your ability as a manager to see how “hard” a person is actually working.  Group texts, posts, tweets, etc. sap countless hours out of your team’s work day.  Throw in meetings, conference calls, and forget about it!

When we look at increasing our staff, we look at three things:

1.       Is our current staff actually taxed?  As I mentioned above, putting in 40-45 hours a week but spending 15 hours goofing off may mean that we need to change the person doing the job, not splitting the job.  However, if an A Level performer is struggling to keep her work flow going, then you may need to look at getting her help.

2.       Will the hire either reduce costs or increase revenue?  At the end of the day, every employee needs to fall into one of those buckets.  If an AR manager brings a wealth of experience in reducing the amount of outstanding invoices, then that may be a great hire.  However, adding a person to AR because there is a backlog may not be.

3.       Can you outsource the needs and receive better service?  Before hiring an HR manager for a small office, look at the alternatives.  Can a third party company handle the issues that you are typically having?  The third party typically is more cost effective since you are only utilizing them when you need them.  Payroll, sales, creative services, accounting, and marketing are all departments that outsourced vendors tend to work well as they bring lots of experience from different industries to your company.

When I was cutting my teeth as a manager, I was once given some advice that stuck with me.  Top performers always get help.  Middlers need to be mentored to see if they can perform better and lower performers need to leave.  I guess that is why 20% of the workforce moves in January.

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