Provisional Blog

6 Costs of Understaffing Your Business

September 21st, 2010

In today’s economy, “doing more with less” seems to be standard operating procedure for most Spokane businesses. However, when it comes to staffing, “less” can actually cost you money. Here are a few of the risks associated with understaffing your business:

#1. Missed deadlines.

A shortage in personnel can have a negative impact on production capabilities, which weakens a company’s ability to meet project schedules.

#2. Mistakes happen.

Attention to detail suffers when companies try to force more work into a process that is already constrained. As a result, more mistakes happen and customers will become increasingly dissatisfied.

#3. Added stress.

When employees are stretched to the max, their stress levels increase and their productivity diminishes.

#4. Higher personnel costs.

Turnover and absenteeism also increase when stress levels rise in the workplace.

#5. Missed opportunities.

A company that’s having a hard time meeting existing workload won’t be able to successfully take on new opportunities.

#6. Competitive disadvantage.

Without being able to increase capacity and deliver quality products or services, a company is putting itself at a severe disadvantage when compared with competitors that aren’t understaffed.

As you can see, running a lean operation doesn’t always save you money if you’re understaffed and your employees are overworked. In fact, it can cost you business in the form of mistakes and missed deadlines. On the flip side, a well staffed organization allows your employees to do their best work and gives you a better of chance of remaining competitive.

If you’re feeling understaffed and need help finding qualified employees, please contact Provisional. We’re one of Spokane’s leading staffing services firms and can deliver the staffing solutions you need, whether it’s short, term temporary staff, or permanent, full-time personnel.