The year 2020 has been defined by uncertainty. Unfortunately, it is likely that the same issues exacerbated by the past year’s events will not be solved any time soon. It begs the question: is it safe — or even responsible — to expand your workforce?
As the end of the year approaches, it’s time to start thinking about next year’s payroll. Here are some things to consider before initiating the recruitment process.
Can You Afford to Hire?
Saving on outgoing costs is the primary focus of businesses across almost every injury. While some organizations need to hire to keep up, others need to pare their staff back, relying on furloughs and layoffs to stay afloat.
If you find yourself somewhere in the middle, look at the KPIs behind your company’s revenue or profitability for insights. Recurring revenue rates, gross profitability, and client contribution can help you determine what money is coming in and whether you will be able to afford new staff in three to six months.
Can You Afford NOT to Hire?
In some cases, hiring isn’t a choice but a necessity, even if your payroll costs are already an outsized source of stress.
It’s important to remember that hiring isn’t just about growth: it protects your current employees. If your employees are on the edge of being overworked, then their productivity will suffer. So while you may save on costs, you will see less value created by existing staff over the short- and long-term.
HR should also assess whether the new staff is needed or whether existing staff have the tools they need to take on the additional work. In some cases, you don’t need a new employee, but rather, you need process improvement or training instead.
Determining what you require to succeed — and whether you can afford not to hire — can illuminate the path forward.
Is It Ever Safe to Hire?
While the past year presented enormous challenges, the truth is that there is no 100% safe time to hire. Talent management is a highly contextual practice, and it requires a delicate walk between market conditions and your organization’s structure, growth, and Talent Management Strategy.
Are You Reconsidering Your Next Steps?
M3 Placement & Partnership will help you maximize your organizational strategy to ensure that you hire at the right time. Get in touch for a free first consultation.