If your company is focused on growth, strategic hiring is essential. You cannot afford not to plan for this next "step change" in your organization.
Understand, the evolution of an organization is not unique to your company. For example, in an organization that has $3 million or less in total revenue, the owner is handling the vast majority of hiring and personnel related functions, marketing, sales and finance. As the less-than-$3 million organization approaches $5-10 million and beyond, that same owner simply cannot continue handling all these functions. If unchecked, the growth of the organization will be stunted.
To be clear: the organization has evolved so the owner's responsibilities need to evolve as well. This evolution is typical and all organizations face similar challenges as they transition through the various stages of revenue growth. That is why strategic hiring must take place for the organization to achieve its potential.
Now you may be asking yourself, "How will I know when to make these strategic hires? What does my plan need to look like? Do I hire the employee before we secure the anticipated growth?"
Know your estimated revenue and profitability
The key component to your plan is your estimated revenue and profitability trajectory over the next three to five years. The reason for this is twofold:
- First and foremost, the revenue and profitability figures serve as benchmarks. If certain benchmarks are identified, you need to ensure the company is staffed appropriately to meet the benchmarks. For example, if you are targeted to grow $5 million in revenue over the next five years and currently have an accounts receivable clerk as your primary accountant, you probably should be thinking a controller will be needed as you approach this next level of growth.
- The second reason, and possibly the more important reason, is that your revenue and profitability figures will assist in identifying the appropriate level of candidate for the role. You want to be certain you are hiring a candidate with the capability to serve the size of organization you are targeted to become.
Consider this Example
A company president believed when his organization achieved total revenue of $15 million, it would be the appropriate time to hire an operations manager. This organization did revenue and profitability projections and had the data to support an established sales goal of $15 million. The president also evaluated the duties he was performing and knew that to ensure continued growth and profitability, there needed to be another layer of management. Several months in front of this sales goal, we initiated an executive search for an operations manager for this company and by early in the year of planned growth, we had the position filled.
Ask Yourself These Questions
Have you performed revenue projections for the next three to five years for your company? Have you evaluated duties you and other key members of your staff are performing? Are some of these duties hindering your continued growth? Are you ready to make some strategic hires to position your organization for the future?
Decision Associates can help you work through these strategic questions and discuss more about what Step Change Growth can mean for your company. Contact us today!