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    Employees: Do You Have Too Many, Too Few or Just the Right Amount?

    By:
    Charles Wonderlic

    How many employees does your company actually need to run at maximum efficiency? It sounds a little like the dilemma facing Goldilocks. Some companies have too many employees. Some too few. And some have it just right. How do you know for sure? The answer is, it's a tricky business.


    Whether you work in engineering or used car sales, manufacturing or customer service, employees nationwide will tell you the same thing. There are too few of them in any given department to do the job effectively. Studies show that six of 10 employees, regardless of the industry, believe there simply aren't enough warm bodies on the payroll and as a result, everyone is overworked.


    Companies in the midst of downsizing might want to take a long look at that statistic. We've talked a lot about "survivor burnout, a common syndrome in companies that have downsized. Those lucky enough to keep their jobs must pick up the slack left by those who received pink slips. And that "slack can oftentimes amount to a doubling or tripling of an employee's workload. The survivors quickly become overwhelmed by the extra responsibilities they're expected to take on.


    The need to downsize isn't the only thing that contributes to the number of employees on the payroll, however. Other changes occur in the marketplace that can mean the call for more, fewer or different employees. Here are just a few:


    A change in your company itself
    Sometimes, companies start out doing one thing and end up specializing in another.
    I know of a magazine that began to feature locally made products. The feature became so popular, they started a catalog. The catalog became so popular, they converted their front office into a retail store to sell the products. Their business model changed. As a result, they needed more sales people and customer service reps to tend to and sell the products, and fewer writers. Their hiring had to change accordingly.


    Changes in demand for your product or service
    Remember White-Out? It's still around, but when's the last time you've used it? On the other side of that coin, take a small business that, after years of selling locally, finally gets a website. Suddenly, orders start pouring in from all across the globe. In both cases, technology has dramatically changed the demand for a product or service. Companies that have the potential to be impacted, either positively or negatively, by technology need to stay ahead of that curve and adjust their numbers of employees accordingly.


    Changes in the need for warm bodies, period
    Many jobs that used to be performed by hand are now done by computer. Bank tellers replaced by ATMs. Gas station attendants replaced by pay-at-the-pump machines. Cashiers replaced by scan-it-yourself aisles. Many of these types of companies are slowly finding less and less need for full staffs.


    Changes in the skills necessary to do the job
    I'm thinking specifically of the training industry, but the same phenomenon is occurring in other industries as well. A decade ago, people got into the training industry because they liked to get up in front of a classroom and teach. Today, much employee training is done online, and guess who is expected to create and administer the programs? Trainers. It's an entirely different skill set needed to be a trainer today than it was 10 years ago.


    So, what you can do to ensure you have the right number and right type of employees to keep your company functioning efficiently?


    Survey your employees
    Take the pulse of your staff periodically, with a specific focus on workload issues.

    Watch your rate of turnover
    Are people leaving more often than before? Staff problems might be the cause.


    Keep an eye on employee stress
    Take a walk through your company. How do people look? Are they stressed? Burning out? Or are they energized and enthused?


    Staffing is a tricky business. Those doing the hiring need to keep an eye on trends, technology and employee workload to determine how many people to hire.


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