Deciding when and who you need to hire is arguably the most challenging part of being a small business owner. Your team must grow with your business, but sometimes, more team members isn’t the better or even the most effective option.

When I first took over operations at my family’s insurance agency, things were so chaotic that I initially thought we needed to hire at least 2-3 new employees. Everyone seemed overwhelmed, there was a backlog of tasks piled up, and our phone was ringing off the hook with impatient customers.

Before I began the recruiting process, I decided to perform an “audit” of everyone’s current roles and responsibilities. I realized that not only did we not need to hire, we were actually overstaffed! I identified inefficiencies and redundancies in almost all of our processes and realized that we weren’t utilizing the tools and systems available to us properly.

It took me almost a year to streamline our operations and maximize our existing team members’ skills, and I didn’t need to hire a single new employee. It all came down to answering the following 5 questions:

1) What do your employees’ current workloads look like?

As the owner of the business, it’s difficult to consistently check in with your employees to see how full their plates are, especially if you’re in growth mode where things are changing constantly. However, this is the most crucial moment to do so, before things get completely out of hand.

Block off time in your schedule and create space for your employees to clearly and candidly share what a typical day looks like for them in their roles. You might find that one person takes on more than they should while another is sitting on their hands waiting for requests to come in. Understanding their daily challenges will give you insight on whether you need to hire or just have to redistribute work amongst team members.

2) Are there any gaps or redundancies within your team’s current roles?

As your employees are walking you through their daily tasks, you will most likely encounter instances where they’re doing double work or facing bottlenecks when trying to complete certain requests. Keep this question in mind: “is there a more efficient way to do this and get the same result”? If the answer is yes, then that gives you data to research and implement more optimized workflows and eliminates your need to hire additional team members.

3) What systems or technology can you implement to streamline your existing processes?

Once you identify the gaps you need to fill (or the redundancies you need to eliminate), it’s time to explore different technologies and systems that could automate or streamline your existing workflows. There’s a plethora of solutions available, but when you’re researching, keep the following questions in mind:

1. Does this solution fill the gaps or remove the current bottlenecks for [x] process?
2. What tangible benefit will utilizing this solution bring to my business?
3. What will the implementation process look like? Is it worth the investment of time and resources to make this change?
4. Is this a solution that my team members could easily adopt and utilize on a daily basis?

4) What training does your staff need to be able to operate more effectively?

If you do decide to update your current processes, then you will need to account for additional training for your staff. However, if you don’t first weigh in on what their current resource needs are, any additional changes will be futile.

Set aside some time with each employee and ask them what they feel like they’re missing in order to perform at their best. Not only will you help enhance their confidence and capabilities, but you’ll also foster a culture of continuous improvement.

5) Are you maximizing each employee’s skill set and strengths to their full potential?

So often employees will stay stuck in a role that they hate because they feel like they just have to “suck it up” and get the job done. They may not have even considered that moving to another position is an option, which is why it’s so important to identify their unique skill set and match it to the role where they can provide the most value.

You might find that the person you hired to be a sales rep would be more successful as an account manager or to work in customer service. Have a transparent conversation with each of your employees and have them tell you what they enjoy doing and where they really shine. This will be your guide to allocating your existing resources to maximize productivity and profitability.

Hiring decisions are pivotal for the growth and success of a small business. However, before rushing into the recruitment process, it is essential to evaluate the efficiency of your existing team. By asking these five critical questions, you can gain a comprehensive understanding of your team’s dynamics and identify areas for improvement. Strategic hiring is not just about adding bodies to your team; it’s about unlocking the full potential of your existing talent.

If you find yourself at a crossroads with hiring for your business, feel free to email me at [email protected] or click the button below to set up a discovery call. You can find more information on my coaching program via the button below as well.