| The Advantages of Variable Staffing During Growth
By Megan Martin
Modern employers face serious dilemmas as they try to grow their businesses while doing “more with less” in a tight economy. Too many companies get caught in the “hiring/firing” cycle—recruiting employees in times of growth, then facing the challenges of downsizing and layoffs.
The result? Increased costs and plummeting morale.
One way to break free of this cycle: Employ a variable staffing strategy by maintaining your irreplaceable “core” staff and hiring outside talent on an as-needed basis.
The staffing industry is booming as more and more companies utilize variable staffing solutions—employing everyone from new college grads to former CEOs. A 2006 report, “Annual Economic Analysis” by Stephen P. Bercham and the American Staffing Association, showed growth of over 200,000 jobs per day in 2005—increasing staffing industry employment by nearly nine percent.
The reason for the staffing industry's growth? “Flexibility,” says Bercham. “Workers want it, businesses need it, and it's good for the economy…America's work force is changing.”
Variable staffing: Good for growth
“Growing companies have trouble finding the right talent for their needs quickly. They often don't have enough time to train new staff, and it's especially difficult to accomplish business initiatives and meet deadlines while trying to build infrastructure,” says Gwen Martin, co-founder and managing partner of NumberWorks LLC.
“Going through the interview process alone takes six to eight weeks minimum. That could mean people aren't in place to do regular tasks, like month-end close, reconciliations for example. The repercussions of unmet deadlines compound.”
Martin sees many companies make hiring mistakes during growth:“There can be a lot of mis-hiring--bringing in people who aren't a good fit for the culture or don't quite have the skill set, but who are available at the time, which usually results in turnover in nine months and takes a toll on morale,” she says.
When should variable staffing be employed?
Variable staffing is often best utilized during times when workload is especially heavy, or for specific projects that need to be handled while your core staff focuses on other priorities.
What are the biggest advantages of using variable staffing?
Lower costs
When you bring in outside talent as needed, you eliminate the cost of permanent hiring and avoid costs incurred by re-hiring. It can be an especially good strategy for interim positions—for example, during tax season or other busy times.
This often reduces or eliminates the cost of training because consultants arrive for the position with the right skills already intact.
Morale remains high
Utilizing temporary employees can prevent the hiring/firing cycle. This demonstrates your commitment to your core employees, and will put them at ease. Another bonus: Because temporary workers constantly approach new projects, they often have an abundance of focus and energy that can be motivating to long-standing employees.
And, as Martin says, “Associates can bring in fresh eyes; they've often already handled similar challenges at another organization and can hit the ground running.”
Gives permanent staff a break
In peak times or times of growth, supplemental staff can prevent burnout in permanent staff during the time you need them to be operating at full capacity. Variable staffing also frees up your top talent's time, so they can focus all their energy on high-level tasks.
Gives you time to determine your next move
”Variable staffing buys companies the luxury of time to have strategic meetings, determine their long- term goals, decide how they will bring people in, and begin succession planning,” Martin says.
What Considerations Do I Need to Make?
Determine your needs
Decide what work can be handled by permanent staff, and what can be delegated to temporary talent. It may be a good idea to think about how you can enhance your productivity by implementing new staff.
Find the best company
Make sure you choose a firm that is proven, reliable and has the talent pool you need. Do your research to ensure that the company employs a thorough screening process, including background checks and evaluation for cultural compatibility. The firms that attract and retain the brightest talent are not necessarily the largest. Benefits are a key factor to contractors. Firms with robust packages, training, and recognition programs will retain the best talent.
How Do I Integrate New Talent?
Make expectations clear
When bringing in contractors, it's important to make sure they understand exactly what is expected of them. Start with specific tasks and deadlines for deliverables. Introduce them to the department and other parties they may be working with. Check in with them during the first day or two to make sure they're on track and give them feedback. Evaluating talent and offering praise or suggestions during their early days with you will help reinforce their objectives and keep them motivated.
Done right, variable staffing can offer your company needed support in times of growth, and pave the way for a solid future. It can keep your core talent from burning out, break the hiring/firing cycle and help your organization actually accomplish more with less.
|
