With so much economic uncertainty facing businesses today, it may be difficult to plan payroll management for the next six to 12 months.
But Hilary Johnson of Inc. magazine offers suggestions for how businesses can plan effectively for payroll and hiring.
Benchmark your personnel expenses month by month and quarter by quarter against competitors and organizations similar to yours to see how you compare, Johnson suggests. Then create “dream” and “nightmare” scenarios to determine whether your current employee count could handle the work if the dream scenario were to occur.
Johnson advises businesses to remain nimble and to make budget adjustments on the fly – then hire on a contingency basis. As the year progresses, watch revenue like a hawk and match up numbers with your best and worst-case scenarios. If your dream scenario is starting to win out, think ahead about the kind of people you would hire to avoid hiring someone out of desperation.
To retain employees and keep pace with competitors, make sure to invest in existing employees now that the economy is showing signs of recovery, Johnson says.
According to the U.S. Bureau of Labor Statistics, the number of unemployed persons in the country, 14.8 million, was essentially unchanged during the month of September. The unemployment rate held at 9.6 percent nationally.