Provisional Blog

As a Spokane employment agency, we know that balancing the right amount of staff with workflow can be a difficult task. Some companies hire too many employees, wasting thousands of dollars, while other companies are understaffed, which leads to employee burnout and less productivity.

So how do you know when it’s the right time to hire? Ask yourself these questions:

• Over the past few months, how many times have I had to extend deadlines in order to meet demand or complete a project?
If you answered “every day,” or “every week,” then you may be understaffed.

• How many times have employees called in sick over the past month?
If you’ve noticed a recent rise in sick days among your staff, it may be due to stress and burnout. Your employees could be over-worked and over-tired because they are trying to do too much.

• Have your employees taken advantage of their time off and vacation days?
Many times, in a bad economy, employees become fearful of taking any time off. They think their employer will see it as “slacking” and they will therefore be the next person on the chopping block. But this can lead to burnout and less productivity. So encourage your employees to take an appropriate amount of time off.

• Are your overtime costs consistently on the rise?
Another sign that you are understaffed is rising overtime costs. It means simply that you don’t have enough employees to get the work done during the workday.

• Have you had to turn down new business ventures or opportunities because you don’t have the right talent?
If you don’t have employees on staff with the skills you need to take on new opportunities, then you’re going to lose your competitive edge.

• How much are you using temporary or contract employees?
If you are consistently using temporary employees for the same tasks in the same departments, it may be time to consider hiring a full-time staff member to perform those tasks.

• Are you implementing ideas from your business plan or marketing strategy?
If not, then lack of time and energy may be to blame. There’s a reason you create a plan and goals for your business each year, and if you’re not able to execute those plans or meet those goals because you have too much to do, then it may be time to hire additional staff.

By asking yourself the above questions, you should now have a better idea about whether or not you need to hire more people. If you have any questions – or are looking to hire more temporary or full-time employees – please contact Provisional. As a premier Spokane employment agency, we can take on the task of sourcing, screening, and hiring, so you can focus on other priorities, like running your business.

As a Seattle staffing firm, we know it’s easy to let the task of hiring get buried beneath your daily tasks. But letting an open position go unfilled could be costing your company money – everyday. Logically, you know that un-rented apartments and unfilled seats on airplanes cost those companies money. Open positions at your company represent a similar lost revenue opportunity.

While it’s hard to assign an exact amount to an open position, you can calculate an estimate of how much that open seat is costing you. Here’s how:

R = Annual Company Revenue
E = Number of Employees

Calculate Revenue Per Employee
R / E = Revenue Per Employee

Calculate Daily Revenue Per Employee
Revenue per Employee/365 = Daily Revenue Per Employee

With that said, different positions have different costs based on the amount of revenue a certain role brings into your company. In other words, some positions are going to cost you a lot more to leave unfilled than others. So, if you have open positions at your company that are going unfilled, it’s time to ask yourself these questions:

• Based on the cost-per-opening of each position, which positions should you be recruiting for now? (i.e. which positions are costing you the most amount of lost revenue per day?)

• How much will it cost you to actively recruit for these positions?

If the cost to recruit it less than the cost to leave the position open, you need to get that position filled fast. Otherwise, you’re literally letting money go down the drain by not filling that position.

If you need help with your recruiting function, please contact Provisional. As a premier Seattle staffing firm, we can help you bring in quality candidates when you need them – and improve your company’s bottom-line in the process.