Create a budget, start your emergency fund, save enough for retirement, pay down debt, and start investing.
There are many things to consider when growing your team and whether now is the time to do so. Hire too few employees, and your current team might experience burnout, not to mention all the overtime you’ll likely pay to accomplish everything. Alternatively, hire too many employees, and customer service suffers, and you’ll lose valuable time on unnecessary tasks.
Growing your team can be nerve-wracking and exciting bundled together. On the one hand, it means you’re hitting important milestones and expanding your business. Yet, it also means you need to grow your team and perhaps even hire new types of talent to accommodate your increasing need. Finding the sweet spot and knowing when to hire and when to hold off is key. Thankfully, there are a few simple ways to tell when it’s time to increase your team.
There’s Too Much Overtime
Overtime is costly when you consider you might be paying time and a half or even double time to each employee who puts in additional hours. This expense quickly adds up and can eat away at your budget. Some employees like additional time, but that’s not true of everyone, particularly those who might have family or other obligations outside of work. Too much overtime can also lead to burnout, which presents more problems.
Your Employees are Showing Signs of Burnout
Are your employees showing signs of burnout? Employee burnout is on the rise. According to Statista, 54% of Gen X workers reported experiencing burnout, up 14% from the previous year, and 59% of Millennials reported burnout, up 6% from the previous year.
Signs of employee burnout include lack of engagement, increased absenteeism, high turnover, loss of productivity, and more mistakes. Additionally, employee morale suffers when burnout is present. It’s essential to take care of your staff. If burnout results from employees working too many hours or taking on too much work, hiring additional staff can alleviate the problem.
You’re Turning Down Work
Turning down work has its advantages and disadvantages, depending on the situation, such as when the work is the wrong fit for your business. In some ways, turning down certain types of work can give you an edge to focus on what your business does best. Additionally, if you take on more work than your team can manage, the trade-off for more revenue and work could mean quality suffers, leading to angry customers.
Take a look at where you’re at with your business and how often larger jobs or extra work is coming in. Now might be the time to hire the help you need to grow your business and keep customers happy.
Customer Complaints Have Increased
When customer service slips, you end up with dissatisfied or angry customers. You place your business at risk of losing valuable customers, too. It costs more to acquire new customers than to retain existing ones. Additionally, managing a loyal customer base increases the likelihood of word-of-mouth referrals and repeat business.
Customer retention is so essential to your ROI that Grant Thornton, the world’s largest accounting network, estimates that 50% of a company’s sales come from 20% of its best customers. So, if you’re experiencing an increase in service-related complaints, now might be the time to hire more help.
You Need New Skill Sets
Technology is constantly evolving. What was innovative last year is now yesterday’s news. Sometimes growth includes adding new skills to your portfolio. New skill sets have the uncanny effect of opening new business opportunities, and there are a couple of ways you can accomplish this.
- Upskill your current employees
- Hire new employees with the desired skill
Sometimes it’s easier and more cost-effective to train existing employees in a new skill. It can also boost employee morale and increase the effectiveness of your team. However, that also depends on the existing and new workload your employees might need to take on and whether the new skill makes sense. Sometimes it’s better to hire new employees with the necessary skills and experience. Review your company’s needs and budget to determine the best approach.
The Final Word
Whether or not you need to increase your team depends on your company’s needs and signs of growth. Hiring new employees is an investment and one that requires additional capital. If you need help finding additional funds, call Extraco today to discuss how a business loan can help you hire the talent you need to grow your business.
Sources
- https://www.inc.com/jared-hecht/7-signs-its-time-to-expand-your-team.html
- https://www.nextaff.com/2021/05/20/5-signs-its-time-to-grow-your-team/
- https://www.rightstone.com/ready-to-expand-your-team-3-signs-its-time-to-hire/
- https://www.indeed.com/lead/signs-its-time-to-add-to-your-team?gclid=Cj0KCQjwzqSWBhDPARIsAK38LY86olK_cmfHvWuaLC8cUsY5kRhBIRUXNcuz83MNGZJrUaGZy9JHJ5waAvj-EALw_wcB&aceid=
- https://www.inc.com/citi/7-ways-to-build-team-built-for-growth.html
- https://www.extracolinc.com/sites/default/files/2022-04/Top_strategies_for_growing_your_business.pdf
- https://www.extracolinc.com/blog/six-numbers-track-growth
