HIRING are facing and the temptation to accept any qualified replacement , I want to challenge you to hire up .
It is often the case when someone quits that managers hire too quickly and they end up hiring down . They simply fill the position with a warm body that isn ’ t going to fill the role to its full potential . Unfortunately , this is damaging for the company in the long run because it leads to a lower performance and productivity standard for everyone .
Whenever your team experiences a loss , you should instead always look for someone who is better , regardless of how strong the outgoing employee was in their position . Perhaps this means the new hire ’ s background is a superior fit for the role or perhaps they have a more suitable set of skills than their predecessor . Investing time and resources into hiring up every time you need to replace a team member will help your company mature , improve its competencies , and solidify its position in the marketplace .
ARE YOU HIRING TO FILL NEW POSITIONS ?
As the demand for your products and services increases , the need to hire more people to take on the additional responsibilities rises naturally . However , it can be difficult to pinpoint exactly when you need to increase your head count . In this instance , I challenge you to look at the situation through a return-on-investment lens .
Let ’ s say your business model runs best when your labor costs are about 30 % of sales . If 30 % is ideal , then you want to make sure you don ’ t exceed it . This means you should wait until your labor costs are well below 30 % of sales before you bring on a new hire . For example , if the new hire ’ s salary will amount to 4 % of current sales , then you want to wait until your labor costs are at around 26 % of sales before you bring that new person on .
Remember that you ’ re not investing in a new product or service offering , you ’ re simply trying to keep up with the growth of your existing products and services , so your labor ratios should remain constant as you grow . If you look at it this way , you won ’ t hire new bodies until the business is there to support them . In a sense , you won ’ t hire until your business absolutely needs to or until your team is feeling really stretched as a result of the labor shortage .
I would sooner have people that are too busy and having a hard time keeping up for a short period of time than a team that is not busy enough . That breeds complacency and brings the performance of everybody down as a result .
ARE YOU HIRING TO STAFF A STARTUP OR A NEW DIVISION OF YOUR BUSINESS ?
When you are staffing a startup or investing in labor for a new division of your existing business , you are working to build capacity for future business . This is the riskiest hiring scenario . In this case , you need to have a clear idea of the results you want to achieve and how quickly you want to achieve them with the addition of each new hire . If you don ’ t set clear goals and expectations for each new hire , it could end up costing your business dearly .
You should look at these hiring decisions as you would any new investment . Know what your investment is , be clear on your expectations , and track your progress . Once you have identified your timeline for results along with milestones , you need to reevaluate your investment at each milestone . If your new hires are not achieving the results you expected at any given milestone , you should assess the potential for recovery and consider whether pulling the plug and revising your plan for growth might be a better option .
ACCELERATE YOUR GROWTH WITH TULIP MEDIA GROUP
Whether you are starting to feel the pull to increase your head count or if you ’ ve just staffed a new venture , Tulip Media Group can help you grow and achieve your target return on investment sooner . Our tailored digital and print marketing programs are guaranteed to get results for your company with increased conversions and more interactions with potential customers . Learn more at TulipMediaGroup . com and book an appointment with one of our production specialists today .
Andy Buyting ' s thought leadership journey started when he published his first business book in 2007 and first magazines in 2009 . Since that time , he has leveraged custom magazines and online digital content strategies to establish himself as a leading authority in content marketing and brand positioning . Through his company , Tulip Media , Andy and his team make these content marketing strategies and tools accessible to their Client-Partners .
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