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Dawn of the Extra Staff


When there's no more work to be done, the staff will annoy the customers...

Chances are you are already doing this, but on the other hand maybe you're not: take a good look at your company's workload, and evaluate your workforce.

This article was inspired by a recent trip to a certain electronics store that I have mentioned before as having notoriously "pushy" salespeople.

This past time I was in there was worse than ever. I felt like I was in the film "Dawn of the Dead" as salespeople gathered around me like zombies hungry for human flesh. This may seem like an extreme analogy, but unfortunately, it's not much of an exaggeration aside from the danger to my life.

Now, these salespeople are just doing their job, and I can't really blame them for the annoyance factor. I blame the way they are being managed. That said, it is still tempting to send these people on quests throughout the store searching for ridiculous requests just for personal amusement.

Yes, the management.

There were clearly few enough people in the store needing help, that they all were chomping (or "champing" if you prefer) at the bit to help me. This leads me to believe that perhaps this store is overstaffed. But maybe it's not even that. Maybe they were just overstaffed for this particular time of day or even day of the week.

It is important to pay attention to trends in your customer patronage on an ongoing basis, and get a feel for when you will actually need certain numbers of employees on the clock.

For some businesses, this is a non-issue, but for others, it is pretty much mandatory for efficiency. You are clearly losing money, paying wages to these employees that are not needed.

I'm not saying to just start letting people go, although if it is best for your business, I wouldn't discourage it, but having less employees working the same hours, may be an option worth considering.

Unfortunately, you may end up losing employees as a result of this anyway due to a lack of hours available for them, but if they quit as a result, somebody else is probably going to pick up the rest of their hours, and in this economy, it is probably not going to be incredibly difficult to find someone willing.

On the flipside...


This whole concept can of course go the opposite way. You may not have enough employees working at the same time. You may be seeing a nice profit come in for a while, but being understaffed can hurt your business just as badly.

If employees are having to take on more than their fair share of the workload, they are not going to be happy, and are  probably not going to stick around as a result.

Other people that are not going to be happy are the customers that are forced to wait because you don't have enough people on staff to help them in a convenient and timely fashion. Making customers unhappy is obviously not a good idea.

Thoughts?

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About the author:
Chris is a content coordinator and staff writer for SmallBusinessNewz and the iEntry Network. Subscribe to SmallBusinessNewz RSS Feeds.

Comments

employee percentage staffing be safe.

Overstaff and understaffed? These are nice guesses for your business. However, you shouldn't have to guess. You shouldn't be throwing darts in the dark like some drunk after the bar has shut down. Your labor should be a percentage of sales. Of course this percentage is different for every business. Do some research and talk with experts. Every industry has their percentage. If you don't know yours its because you haven't done your research or been in business long enough. In general most service businesses are around 28-32% labor cost vs sales. I have found in mine that I can maintain this and make a fantastic profit margin. One more point is that you should always be growing into a new employee unless there are the dark clouds of a negative economy on the horizon. Then I revert to the expression "Be slow to hire and quick to fire" When I look at last weeks annoucement that GM was laying off 3000 workers I ask myself what took GM so long to let them go? Sales of GM cars have been down for several years now. Each department should have had their own budget as percentage of sales so there was never a huge layoff. Now you have 3000 people trying to get the same or similar jobs at the same time. I'm on my soapbox now. Sorry. Find your percentage and you will not be over or understaffed. Just properly staffed to make a profit.

RE: employee percentage staffing be safe

Good stuff, thanks Zack!

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