5 key signs it’s time to take on more staff
How do you know when it’s the right time to take on a new employee? Hiring an extra member of staff is a big financial and resourcing commitment; but bringing in the right person at the right time can help you grow, secure and futureproof your business. So, it’s a decision every workshop owner wants to get right.
Could you be using your existing workforce more effectively? We asked some of the mechanical industry’s top experts for their best advice on how to judge when it’s time to bring in more labour. Here are nine questions they suggested every business owner needs to ask themselves when weighing their options. Start by looking closely at how well you’re using your existing resources, says Jeff Smit, technical editor at The Automotive Technician (TatBiz). “Say you’re employing two technicians: how much of their day is spent doing mundane things that maybe a non-skilled person or a workshop assistant could do?” he said. “You think you need more ‘hands on deck’, but what sort of hands do you need? Do you need to put someone in the office to free up the manager, who’s a fully qualified tech? Why is he organizing job cards for tomorrow or why is he answering the phone? “You don’t want to be paying a fully-fledged technician on high hourly rates to do those kinds of tasks.”
Are you achieving decent productivity from your existing staff? 6 CAPRICORN IGNITION JUNE 2021
How productive is your current team? TatBiz general manager Geoff Mutton said you’ve got to be achieving decent productivity out of your existing staff before you consider hiring more. “If you’ve got poor productivity from two staff and you bring in a third one, nothing’s going to change,” he said. “It’s just going to get harder for you to manage. You’re not going to make more money — you’re just going to go backwards.” Rachael Evans, who as the Workshop Whisperer spends her working life helping workshop owners achieve their business goals, says a workshop that is edging 80%insights? Looking for towards news and productivity is a key indicator that it could be time to take on a new technician. That’s a decision she recommends making with your accountant. “It’s got to be costed and it’s got to be budgeted,” she said. “You need to know what type of return on investment you’re looking for from this person.” You need to be able to: • Project what additional revenue you’re going to generate • Be sure the new employee is going to pay for themselves • Track how well they’re performing against your goals.
