Think before you hire!

According to the latest Manpower Employment Outlook Survey, hiring during the first quarter continued to grow at an anemic level. Of 18,000 employers surveyed, 14% said that they increased staffing levels during the first quarter, while only 9% made additional cuts.

As the economy gradually improves and your organization starts to consider adding to your headcount, ask yourself the following questions:

• Is adding full time positions to the organization congruent with our strategic plan? It’s critical that staffing requirements are based on your organization’s strategy. If you haven’t updated your strategic plan and established a clear direction for your organization, you shouldn't even begin to consider additional headcount.
• Have we considered the cost of a new hire? Base salary is only a portion of the overall cost of an employee. You must also consider costs related to recruiting, benefits, employment taxes, and other overhead expenses.
• Have we considered using temps? Not only do temporary agencies relieve you of much of the administrative burden connected with the hiring process, but they allow you staffing flexibility and the opportunity to “try before you buy.”
• Have we clearly identified the skill sets and character attributes that we require to meet our internal job requirements and ensure the employee fits in the organization’s culture? The better you clarify the type of person who will be successful in a given position, the greater the chance that the person will succeed in the job.
• Are the managers, supervisors, and employees who will be involved in the recruiting process adequately trained? This means these individuals not only understand the full range of skills and personality traits that the organization requires, but they are intimately familiar with best practices and legal requirements related to recruiting and hiring.

While an improved business outlook may be great for your organization, don’t create future problems by making staffing decisions precipitously. Wise managers understand that adding to regular headcount should always be a course of last resort.

This blog post is provided by Allen Miller and Business Advantage International. For assistance in dealing with human resources issues including organization effectiveness, training, compensation, and compliance, call Allen at 801.444.9919.