Planning
for new hires
Don Schmitz/Human Resource Staffing
To
survive in these turbulent times, many companies have dramatically
reduced the number of employees and now attempting to do more
with less. They've scrapped projects, renegotiated contracts,
laid off workers and find themselves with no room to grow.
So, now it's back to the drawing board or do we have a plan?
Adrian
Gostick & Chester Elton in the popular book, The Carrot
Principle stated, “Turnover is a $5 trillion annual drain
on the U.S. economy.” When the economy picks up, they are
going to be paying a higher premium for talent.
Peter
Cappelli, from the Wharton School of Business stated, “Most
companies never do any workforce planning”. They waste millions
each year and never learn from their mistakes.
The
decision to begin hiring is difficult, but not if you have
a workforce plan.
Workforce
planning steps;
1. Looking at the future
Before the hiring process begins, it's important to look at
your companies' staff; strengths and weaknesses. Talk with
your customers and estimate what they are willing to pay for
in new services. Determine how competition will react to your
new product or services. The longer the time period you can
project, the better. If you're counting on reeling in new
customers or you have several promising projects on deck,
estimate how much those activities will return.
2. Choose where and how many employees to add
If you can't grow from within, identify the jobs based on
your company's needs. Prioritize the key requirements required;
qualifications, budget, characteristics and experience.
3. Add your projected new revenue
Estimate the amount of $'s new employees will contribute to
the company. How many new products can be built or services
provided over the next year?
4. Subtract your expenses
Factor in salaries, recruiting and training costs, as well
as the cost of providing benefits. Now add a little extra
to the formula; consider 5-20% depending on volume.
5. Alternative workforce
One source that should not be overlooked is the contract or
temporary labor pool that can be an effective feeder into
the permanent workforce. If your company's projected profit
margins don't appear strong enough to hire more full-time
workers, you might want to consider temporary employment.
Hiring temporary can add speed to the equation. You can often
reduce time and money of recruiting. The company cans quickly
increase or decrease costs and the opportunity to see the
temporary perform before hiring.
6. Evaluate
Based on your firm's projected cash flow, determine whether
your profit margins can support hiring additional employees.
Many businesses are going to want an immediate, one- to two-year
payback on this investment. So, if it costs you roughly $65,000
to add a new person, you should plan to be able to recoup
your investment in a year or two.
Your
strategic planning will not only assist you determine what
to do now, but take the guesswork out of workforce planning.
This planning will become a blueprint to future growth.
Back to the library
Reproduction
of this article cannot be accomplished without the expressed
consent of Human Resource Staffing. Don Schmitz is a popular
speaker and writer on all aspects of HR and CEO of Human Resource
Staffing. Don holds graduate degrees in Education, Administration
and Human Development.
Contact Don@HumanResourceStaffingInc.com
952 854 6040
