The concept of business lending has been in tremendous focus of late, particularly with the UK government pledging up to £330 billion in funding to businesses affected by coronavirus and other countries doing similar funding efforts. However, businesses have generally been loath to obtain funding in the recent economic climate, not least because of the ongoing uncertainty surrounding Brexit.
However, this may be a necessity for companies who are looking to grow and expand their operations, especially if their aim to achieve key growth objectives and increase their bottom-line profitability.
In this post, we’ll ask how you can grow and take on new employees without compromising the long-term integrity of your business or exceeding your firm’s financial means.
Set a Budget for Hiring
You should always set a viable and realistic budget when looking to grow your business, and recruiting new employees is no exception to this rule.
While some firms believe that budgeting restricts their capacity to spend, it actually helps them to identify an accurate amount that can be invested into their business and allows for informed decision making that drives sustainable growth across the board.
In instances where you notice a financial shortfall due to temporary cash flow issues, you can also consider taking out a short-term loan.
Service providers such as Nucleus Commercial Finance can offer this type of structured lending, while enabling you to source capital at an affordable rate.
Consider Your Overall Staffing Costs
When looking to hire strategically, we’d also recommend that you review your overall staffing costs and structure in order to drive an efficient and sustainable spend.
You could look to minimise the number of core, permanent staff members who work within your company, for example, while employing a higher number of contract and project-based employees as a way of optimising productivity in real-time.
On a similar note, you could also look to take on apprentice or temporary staff to help handle non-strategic tasks, freeing up some much-needed cash for employing highly-skilled individuals within the firm.
Each of these measures require careful consideration and forethought, while it will also be necessary to create a clear distinction between strategic and non-strategic roles. Then you can proceed with revolutionising your business model and driving long-term growth.
Be Vigilant When Pursuing the Hiring Process
Once you’ve settled on your company structure and identified a viable recruitment budget, the next step is to impose a stringent hiring process that guarantees value for your total spend.
This is arguably the single most important step when looking to invest in recruitment without compromising the short or long-term health of your venture, as it ensures that you hire individuals with the requisite skills and core values to effectively represent your brand.
This also breeds immense confidence in who you’re hiring, allowing you to build a positive relationship with new employees and hopefully reduce your business’s turnover rate over time.
We’d also recommend taking time to refine your recruitment policy and strategy before you put this into action, as rushing into decisions will compromise your firm and ensure that you waste a great deal of hard-earned capital.
Note: this article is primarily for our UK readers.