Assessing Personnel Needs - Tips

As payrolls have been trimmed and companies have been forced to run lean, many have tried to increase productivity to nearly unrealistic levels. As things start to emerge in what may be a "new normal" rather than lightening-quick recovery, we look at this cross-post from Bolts of Lightening in OED's Community site.

The small business owner should base the firm's personnel policies on explicit, well-proven principles. Small businesses that follow these principles have higher performance and growth rates than those that do not follow them. The most important of these principles are

• All positions should be filled with people who are both willing and able to do the job.
• The more accurate and realistic the specifications of and skill requirements for each job, the more likely it is that workers will be matched to the right job and, therefore, be more competent in that job.
• A written job description and definition are the keys to communicating job expectations to people. Do the best job you can! is terrible job guidance.
• Employees chosen on the basis of the best person available are more effective than those chosen on the basis of friendship or expediency.
• If specific job expectations are clearly spelled out, and if performance appraisals are based on these expectations, performance is higher. Also, employee training results in higher performance if it is based on measurable learning objectives.

The first step in assessing personnel needs for the small business is to conduct an audit of future personnel needs. Ask yourself:

• Can the workload you visualize be accomplished by the present work force? 
• Will more or fewer employees be needed? Consider seasonal patterns of demand and probable turnover rates.
• Can any jobs be eliminated to free people for other work?
• What balance of full-time or part-time, temporary or permanent, hourly or salaried personnel do you need?
• What does the labor supply look like in the future?
• Will you be able to fill some of the jobs you've identified? How easily?
• What qualifications are needed in your personnel?

Develop a method to forecast labor demand based on your answers to these questions. Once your needs are estimated, determine strategies to meet them. Be wary of tightening payroll to the point you eliminate any chance for growth.