How much do you value your workforce? The personnel in your business are the driving force behind any success. Without your people, your company cannot exist in its current form. So what happens when your current business practices just aren’t delivering the profits you need? Can it all be down to people you employ? Can people really rise above market trends and make your business profitable beyond your competitors?
With so many questions about human resources, it can be quite stressful trying to put a value or demand on your people. However, many businesses tend to recruit in a pattern. The two most common trends in recruiting are these:
1. Recruit low-level inexperienced personnel who are cheap, local and trainable.
2. Recruit high-end highly qualified people who have the expertise under their belt already so cost a lot more to attract to the role.
Some businesses are unable to recruit the best people in the business due to budgetary constraints. Other businesses believe they cannot afford not to hire the best of the best. Whatever mindset your company falls under, there are pros and cons to both approaches. If you have untrained staff starting, legal obligations and regulations may demand they achieve qualified status within a set timeframe. You would have to fund this. Most factory or manufacturing businesses have these guidelines in place to protect your human resources from harm. Whatever industry you are in, you may need to send new staff on courses like the scientific molding seminars for those working in plastics.
Many industries require this training to be refreshed every three years anyway, so hiring staff will cost you in ongoing training. By hiring someone willing to learn, and providing those essential skills, you may gain more loyalty. Some businesses fear staff will take the free training you have provided and get a higher paying job with it elsewhere. This may be a risk, but building the right culture in the workplace should go a long way to preventing it happening.
With training comes the expectation of promotion opportunities and pay rises. Indeed it would be foolish to ignore this. If you wish to develop a culture within your business that all staff start at the bottom and work their way up as high as they want to go, this could go a long way toward staff retention. But it may push out the enthusiastic high achievers if you don’t provide fast tracks or graduate programs. Those personalities that are not satisfied at the bottom because they are ambitious for the top can be highly beneficial to a growing company with big plans.
Hiring only those that have already gained experience or further education may leave gaps at the bottom rungs of your personnel requirements. It may also cause friction between those at entry level and those that walk into to higher power positions. Striking a balance is difficult. It is necessary to find the right personalities to fit each role to create the company culture you are looking for.