3 Common Staffing Issues (And How to Avoid Them)

In Staffing Solutions by adminburnetts

staffing services

staffing services

In order to be successful, businesses require skilled and hard-working team members. But hiring new employees and retaining your workforce isn’t always easy. And when you make mistakes with your staffing, the costs can be astronomical. In order to staff your company properly, you’ll need to know how to avoid some key issues — like the ones outlined below.

PROBLEM: High Turnover

It’s normal for some employees to eventually decide that it’s time to move on. But when turnover turns into an epidemic, you know you have a major problem. Not only can a high turnover rate impact your public perception and impede your ability to attract new talent, but it will also have a substantial effect on your bottom line. In fact, the costs of employee turnover can represent 30% to 150% of a given employee’s salary. When your business struggles with high turnover, you’ll find it difficult to stay on track.
How to Avoid It: High turnover rates can be attributed to a number of factors, but there are usually some internal considerations that might play into this decision. A negative workplace culture, low wages, poor employee engagement, and subpar hiring practices can all culminate in higher turnover. Focusing on employee communication and ways to improve engagement can make a huge difference, as can the assistance that staffing services can provide. If you’re able to find candidates who are a good fit for your culture from the start, you’ll have a better chance of keeping employees around.

PROBLEM: Poor Hiring Choices

Bad hiring decisions often go hand-in-hand with high turnover. After all, hiring the wrong person for an essential role can have major financial impacts. But these poor hiring decisions can also have a negative effect on overall culture, which can further jeopardize employee engagement and overall satisfaction.

How to Avoid It: Often, these decisions happen when a hiring process leaves something to be desired. Whether a business owner lacks the time to devote to properly screening and interviewing candidates or doesn’t know what to ultimately look for during this process, the results can bring costs up and culture down.

The best way to prevent this scenario is to be proactive — and to outsource some of the workload. When you need to staff your team with people who are a great fit and will bring a lot to the table, you can rely on staffing services. That way, all the preparation will be done for you and you can focus on the tasks that will allow you to decide on the right person for the job.

PROBLEM: Overstaffing Your Business

Although understaffing is a chief concern for many business owners, the truth is that overstaffing can be equally problematic. When you overstaff your business, you may have to choose between financial loss and layoffs — both of which can spell trouble for your company and for your culture. You may be able to determine whether you’re overstaffed by comparing labor costs to sales, but taking quick action on perceived overstaffing issues can create the opposite problem if you’re merely experiencing a short-term slow period.
How to Avoid It: You can avoid overstaffing your business by being careful not to go on a hiring spree the moment you see business picking up. It’s essential to compare your payroll percentage and your gross revenue to the industry standards. You can also determine whether employees in one department could be retrained and moved to other departments to avoid layoffs. Keep in mind that overstaffing may only be a temporary problem, particularly if your business is attempting to expand. By working with staffing services to find the right candidates for positions, you may be able to avoid hiring too many employees (particularly unqualified ones). What’s more, if you find you’ve reacted too quickly to an overstaffing issue, staffing services can help you to fill vacancies and ensure employee stress levels are kept in check.

When you need staffing help, it’s a good idea to call in the experts. Our agency can help you avoid these scenarios and ensure your business is able to thrive. For more information, please contact us today.