How to Effectively Leverage Your Hiring Budget in 2014

From The Wood Companies Blog

January 24, 2014

Hiring takes a huge chunk out of your operating expenses, so you had better make every dollar count. Leveraging your hiring budget effectively requires you to look critically at where you are now, look back at your history and make realistic projections for the coming year and beyond.  But the time you invest during the last days of 2013 will go a long way toward ensuring that you make the best decisions for your company’s future.

Here are a few questions you need to ask yourself.

How does your industry look?  Look at what orders you have lined up for the coming year. Pay attention to the buzz on Wall Street or among other analysts. Can you anticipate growth from new projects or project domestic growth in your sector?

How does the economy look? Even if your industry is booming, a weak economy can leave you skittish about new hires. On the other hand you don’t want to miss opportunities by not having enough available workforce to meet demand. An uncertain economy is a great time to try temporary staffing. You can bring in the staff you need when you need them without the risk of permanent hires.

Can you anticipate attrition? Do you have key players ready to retire or are you aware of any staff members who may be ready to move on to new opportunities? Do they need to be replaced or can you close the gap and eliminate that position from your headcount?

Are there upcoming reductions in force? Will you lose headcount budget with the planned downsizing or can you use those newly freed-up funds to fulfill other roles or needs?

What projects do you have planned? Take the time now to figure out what you’ll need to complete your projects on time and under budget. Think about using contractors or consultants rather than adding more permanent headcount than you need.

What is your recruitment strategy? Great hires can come from a lot of places. Recruit from colleges or trade schools, attract candidates to your company with a great website and compelling job postings or partner with a recruiting or staffing firm who can help to screen candidates or provide flexible staffing options.