Q: What is the best way to determine how many employees your business needs? How do you know when you have too few or too many workers?
The first step is to create an organizational chart that clearly defines every job function required to effectively operate your company. Initially, multiple job functions may be covered by a small number of employees. For example, sales, operations and payroll is initially the CEO's responsibility.
As your company grows, you will need to watch for indicators that the efficiency, productivity or quality of your work may be being impacted by inadequate staffing. Examples of those indicators are more frequent service failures, a higher number of customer complaints, employee burnout, excessive overtime, an inability to fulfill new orders in a timely matter, etc.
You should be able to develop statistical data tied to your industry that allows you to mathematically calculate when an employee hire is required.
An easy way to determine this calculation is to take your annual revenue divided by your average annual employee count and divide by 12 for the number of months. This will give you a number that reflects the amount of income required to sustain the productive employee. Obviously, there are other factors that impact this number, but it serves as a gauge for your organization.
Technology and automation may be used to decelerate the need of hiring new employees. Investing in tools to make your existing employees more productive can alleviate the long-term cost of excessive employees. Capital investment in the short term can lead to long-term efficiencies and cost savings.
Before making the decision to hire an employee, consider your resource options. If the increase in workload for your company is project-specific or more short-term, consider outsourcing those duties to a staffing company or consulting firm that specializes in those activities.
Xeam Ventures is one of Best Staffing company which can help you in achieving this goal . As, they are global leaders in providing HR Services, Staffing Services and handling Payroll Management.
As your company grows, you will need to watch for indicators that the efficiency, productivity or quality of your work may be being impacted by inadequate staffing. Examples of those indicators are more frequent service failures, a higher number of customer complaints, employee burnout, excessive overtime, an inability to fulfill new orders in a timely matter, etc.
You should be able to develop statistical data tied to your industry that allows you to mathematically calculate when an employee hire is required.
An easy way to determine this calculation is to take your annual revenue divided by your average annual employee count and divide by 12 for the number of months. This will give you a number that reflects the amount of income required to sustain the productive employee. Obviously, there are other factors that impact this number, but it serves as a gauge for your organization.
Technology and automation may be used to decelerate the need of hiring new employees. Investing in tools to make your existing employees more productive can alleviate the long-term cost of excessive employees. Capital investment in the short term can lead to long-term efficiencies and cost savings.
Before making the decision to hire an employee, consider your resource options. If the increase in workload for your company is project-specific or more short-term, consider outsourcing those duties to a staffing company or consulting firm that specializes in those activities.
Xeam Ventures is one of Best Staffing company which can help you in achieving this goal . As, they are global leaders in providing HR Services, Staffing Services and handling Payroll Management.
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