Wednesday, August 24, 2016

The Purpose for Staffing Models

In order to create the oppotunities for continued sales growth, profitability, and market penetration, small businesses need to create and implement a strategy for recruiting, training, and retaining key positions. The sad reality of many small businesses (firms employing 2 to 5 employees) is that the owner typically attempts to perform all of the duties needed to keep the business operational in addition to growing. Honestly, this is damn near impossible. Even with the advent and growth of online businesses, there still exists the need to employ others to aid in the business's growth and stability. It's quite true that 'no man (or woman) is an island". Until the business owner realizes, accepts, and implements an action plan to hire, train, and retain key personnel, the business will eventually hit a ceiling that can't be penetrated until personnel is added.

A sound staffing model gives the business owner a tactical plan to use in fulfill the positions needed to grow the business. It consists primarily of the following:

  • Position Title and Purpose - gives clarity to the business owner of the why and how of the business in terms of the overall business model
  • Brief Job Description - aids in the hiring and evaluation processes
  • Required Tools and Materials to Perform the Work - aids in the optimal performance of the work planned
  • Total Costs - helps the business owner gain an understanding of the projected costs (and returns) for employing the position. 
One of the best and easiest methods for developing a staffing model is to create an Organizational Chart. Simply, the owner sits down with a blank sheet of paper and plots out how the business worksk from time a lead for work is produced all the way to the end when the service and / or product is delivered to the client or end user. Also client or end user retention for recurring purchases is added into this planning process. Now that the owner has an schematic of how the business process, he or she can extract out the key components of the process and tie these to positions. Typically, these positions will come in the following categories: 
  • Marketing and Sales (responsible for lead generation and customer acquistion | retention)
  • Production (responsible for producing the product and / or service for distribution to clients or end users)
  • Administration (responsible for keeping track of the numbers for Sales and Marketing and Production) for feedback and improvement purposes in addition to safeguarding the money earned and assets created and retained. 
In closing, it's also best to realize that staffing models change and grow as the business grows. The business owner and his or her team needs to always be in a mode of revision, updating, and improvement when it comes to staffing and personnel management. Remember, the most important assets in any business are the people tasked with ensuring the business survives and thrives on a daily basis.