Payroll is a considerable expense to your business. This means you probably want to make sure you need to add staff before you hire. It can be challenging to decide to hire, but it’s the best decision you can make sometimes. How do you know if you’re being strategic about hiring and driving profit to your bottom line?
Revenue Growth
Adding staff will be an essential move when your expecting revenue growth. Increasing your payroll may add an expense, but it will also drive more of that profit. Companies that try to handle revenue growth with their existing staff often experience employee burnout.
Employee Capacity
Burnout may be the most important reason to add new staff to your team. If your current employee base cannot meet demand, it’s time to add to the roster. You should provide an environment where people have a work/life balance. If that is impossible, it’s time to hire.
Increased Overtime
Some industries, especially manufacturing or something specialized like shipbuilding, rely on overtime. But if overtime becomes more challenging with the team you already have, you may need to increase your employee numbers. You can add a second shift or simply add more people to take on those additional hours.
New Opportunities
If your business has a chance at new opportunities but doesn’t have the labor capacity to excel, it’s time to bring new people on board. Companies that pass up on business are left behind by the competition that moves their business to the next level. Take advantage of these chances to grow.
Updated Skills
Of course, another reason to hire new employees is to add updated skills to your business. This is especially true with technology or other advances in the industry. You want to stay competitive, so hiring someone with these skills will add to your experience. You may also consider upskilling your current employees to match the requirements.
Are you ready to add new talent to your team? Call Hutco to see how we can help.
