Over-hiring is risky business

In business, it’s easy to think that more is more. Every organization wants more followers, more likes, more clients and more profit. Just like the number of awards hanging in your hallways or the number of international offices you have, image is everything. The more you have, the better you’re doing, and the more street cred your company will have.

Business and competition go hand-in-hand, which is why executives may feel they need to keep up with the Joneses in order to appear successful. This thinking can also be linked to how many employees are in an organization. Increasing your staff from zero to 300 in less than a year may seem impressive, but it is only a bragging right if each employee is being utilized to their full potential.

The consequences of overhiring can be detrimental to your business. So before you start drafting the next job posting, ask yourself these five questions. or if bringing in a new skill set will benefit the team and the company.

Boredom is dangerous. Employees that feel underutilized and unchallenged can increasingly become negative and disengaged. This can spread like wildfire among the rest of the team, leading to a poor corporate culture and employee turnover. Every person has different thresholds of how much work they can handle, so before you automatically assume they’re too busy, sit down with them one-on-one and simply ask if they want more work. You may find that the tasks can be divided among three or four people, giving them more responsibility and saving you money.

We live in a culture in which titles are everything, and just like those Joneses, it’s all about perception. Saying that you have a Refreshments Supervisor or a Culture Coordinator may sound pretty impressive, but in reality, what will they do to fill 40 hours a week besides filling water bottles and planning summer barbecues? also rings true for the hiring process. Depending on the type of work you need done, you may find that hiring a more experienced, multidisciplinary skilled professional is what’s actually best for the company. While their salary demands may be higher, their performance will far outweigh the cost compared with hiring multiple people with entry-level skills. Plus they’ll have the leadership, connections and expertise to keep the company efficient.

Staying small has its benefits. In general, small companies are agile. They work at a faster pace and are more in touch with their customers. Without archaic bureaucracy, employees are empowered to make decisions, giving them a competitive edge over larger counterparts. Initiatives can be implemented quicker. This is a valuable asset that could easily become compromised if you have too many people without enough say or responsibility.

Image is important, but like the old saying goes, choose quality over quantity. Check your ego at the door and hire for the company’s needs, not its bragging rights.