In the competitive business environment, companies are always looking to keep their expenses to a minimum. This presents a big challenge for managers who are looking to add more resources to their workforce.
We often hear “too much work but very few resources” in many organizations and mostly that is actually the case. However, managers often find difficult to justify hiring additional staff, which puts them in a very tough spot.
If you happen to be one of those managers who experience difficulty in rationalize and presenting the need for additional resources to your boss, today’s your lucky day! This guide will teach you how you can justify an increase in your team. Let’s get started!
Increasing resources means increasing liability!
Before we discuss how to justify additional resources, we need to learn why it can actually be a big deal for business. Whether full-time or part-time, hiring new employees means a company is increasing the size of their organization, which results in additional liability.
For many businesses, employee wages already make up a substantial part of their business expenses. Salary, bonuses, health insurance, and other compensations can further increase these costs. And that doesn’t even factor in the recruitment and training costs.
In addition to that, it can take weeks or even months for new hires to become productive members of the team. Due to these reasons, requests for additional resources can be perceived as an unpopular request.
What are my options?
If your company is suffering from financial crises, it’s unlikely that they will authorize hiring new full-time employees. As we mentioned before, hiring new employees means adding more liability, and it simply isn’t a good business decision.
Now, you may think about hire-part time employees to keep costs to a minimum, but that also creates an employer-employee relationship, which means business will need to pay wage, pay for worker’s expense, and go through the tedious hiring process.
Therefore, the best choice when your company doesn’t have the budget to hire additional full-time employees is contract staffing. It’s an arrangement where a business hires skilled employee on the basis of a specific written contract.
Contract staffing is an ideal recruitment method for short-term purposes as additional resources are only hired for a certain number of hours or until the completion of a project. This means that justifying the request for additional resources becomes easier.
There are three important questions that you should present to your manager, and if the answer to any of these questions is yes, then most of your work is done. What are those questions? Let’s find out:
Question #1: Is the company losing money by not approving new resources?
This question may seem very simple and straightforward—and it actually is—but it matters the most. There’s no company that likes losing money because of staffing deficits. In fact, it’s the other way around as companies constantly look to increase the volume of their business.
If you can demonstrate that the company will have to forego additional revenue due to a lack of resources, your request is likely to be approved without any hassle. Create a compelling case to show that hiring additional resources is necessary to undertake a new assignment.
For instance, if you’re a web development company and a potential client comes with a project with a strict deadline, you can validate hiring additional resources to ensure completion of work on time.
It works particularly well in cases where business risks losing potential clients to their competitor as financial planners are obsessed with remaining ahead of their rivals. However, even if that’s not the case, the mere argument of losing money can be very convincing.
Furthermore, it’s optional but you may also attest records of every job your business had to turn down due to lack of staffing. It will not only strengthen your case but also help you earn brownie points and show initiative.
Question #2: Will adding new resources help making the better use of existing ones?
This question isn’t really straightforward to understand but can help to validate your case of hiring additional resources. There are many instances where companies existing resources being underutilized due to several bottlenecks and holdups.
For instance, your company might have certified SAP specialists who can develop top-of-the-line financial modules but they design basic accounting software simply because there’s no one in the team to run tests and implement solutions.
In such scenarios, your company can benefit from hiring existing resources as they will be able to realize the full potential of their existing resources and possibly add a new revenue stream for their business.
To substantiate your claim, go to the meeting with your boss with a few ideas pertinent to job responsibilities of the new resources that you are looking to bring onboard and how hiring them will result in better utilization of existing resources.
Question #3: Is staff morale suffering due to a lack of resources?
Finally, when persuading your managers to hire additional resources, you can argue how it will help improving the morale of existing staff. While this argument can be difficult to quantify, it can be very effective.
A big reason why most employees leave is due to a lack of morale, which is often the result of the burden of work. If hiring existing resources can take some responsibility off the shoulder of the existing workforce, it can help to increase their morale and levels of job satisfaction.
Furthermore, many businesses often find staff turnover a big problem. Modern-day employees believe job switching is an important part of career growth. This belief is especially prevalent in the IT industry as the majority of the workforce in tech companies is comprised of millennials.
Working on improving staff morale can help companies to make employees stay longer in their organization and save money that they invested in their recruitment and training, and also save the cost of hiring a replacement.
We hope that the aforementioned tips helped you understand how to justify additional resources for your business. Contract staffing allows expanding the team while keeping costs to a minimum and offers great value to organizations. That being said, it’s imperative that you find a reputable contract staffing agency that offers quality resources to realize its true benefits.
If you’re looking for contract IT staffing and professional services, contact IT Avalon today. Based in California, we’re an award-winning contract staffing and recruitment company that provide professional candidates with relevant experience and skillset to achieve your business goals. To learn more about our services, or see a list of available contractors, click here.