It’s always a good sign if you plan to hire new employees for your business. It’s absolutely certain that the biggest businesses you see today have started with at least one person, or at most, a handful. Before you can even get to 1000 employees, you started with a measly number and progressed from there. You don’t just jump from 10 employees to 1000 employees in a snap. As a business owner or executive, it is appealing to think that to hire new employees fast means more business and more success. But it’s not always the case. Hiring new employees is costly and on top of that, there’s also the risk of hiring wrong employees which could even be costlier. Before you make that costly decision, here’s a list of things you should consider first:
Before you take a step forward, stop for a while and look back at where you came from and where you currently are and ask yourself, is everyone in the team working efficiently with their current workload? Don’t be overly confident that just because you have a great team, they can work the extra mile. There’s also such a thing called as Employee Burnout and the costs are real. If you depend too much on your employees to save you the costs by giving them more workload, you might end up paying for more.
Customers come and go. Before you increase your foothold, ask yourself, are the customers coming or going? It’s obvious that business owners will often look at the brighter side of the business and think that customers will pour in fast. But the market can be tricky. You can only do your best as to forecasting and predicting but until it happens, you have to wait and see. Depending on your business, there are different business models being used. But the common model is that you have to rely on both revenues coming in from new and existing customers. And the best way to retain existing customers is to make sure that you can attend to all of them. Is your current workforce able to do that?
Growing your workforce isn’t all about the market demand or current workload. It’s also about business strategy. Sometimes, hiring is the best way to grow your business. For example, you have a lemonade stand and one of your top level goals is to serve everyone in your country, it really doesn’t make sense to just increase your marketing expenses and ask everyone in the country to go to that one stand that you have. The business strategy that makes more sense is to simply grow your network of stands and increase your workforce. Of course, you have to make sure that you made your due process of studying the feasibility of your strategy. That’s a different topic altogether.
There is no one reason for you to increase your employee numbers. This decision is ultimately up to you. The most important thing is to make sure that when you start to grow your workforce, there are cost implications on top of simply adding people to your payroll. There are costs to hiring, training, and even hiring the wrong person. To address one aspect to this, we created Kandio to help minimize the expenses when it’s time for you to hire and grow your workforce.