Having Too Much Staff Can Kill Your Business Success

Business Management


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Sometimes we think that having a lot of staff will be helpful in the business. Unfortunately, if you are the only person who can bill for fees that staff is not making your time more efficient, staff is a liability that just lulls you into financial problems.

I know a physician who earned half a million dollars last year. He is completely debt free and would dearly love to have more time for himself and his family. He works extremely hard but just can't seem to get out of the loop that he has created.

We reviewed his situation and realized that he bills at $32.00 for each ten-minute segment of time. Part of the problem is that he is paying six staff at the rate of $32.00 each per hour. No wonder he has a problem.

When he is not in the office, there isn't an income and yet he is still required to pay the staff. It is a real rat race!

When you hire staff, you make a commitment to them. Salary is usually calculated on a per hour basis. There are other benefits, however, that you need to consider. For example, when a staff member is away because of sick leave or vacation, you are likely still paying them. And if you need to hire a temporary staff member to replace them, you then have double the cost. Allow at least twenty percent on top of the hourly rate to cover benefits.

And, when you have staff, you are still required to pay them when you are away from the office. That means that your professional development or vacation time is costing you twofold.

Many times, solo professionals figure out ways to automate tasks or reduce their staffing requirements in order to reduce the number of hours that they will be working with success.

Before you start making commitments to people who you think you might need to hire, take some time to consider options. Maybe you could hire contracted workers by the hour or purchase software that will allow you to perform some things on your own. Operating a business is not just about how much money you can earn. It is also about how much freedom you have to pursue the things that interest you and allow you to enjoy the important relationships in your life. Make good choices before you make firm staffing commitments.


Dr. Linda Hancock, the author of “Life is An Adventure…every step of the way” and “Open for Business Success” is a Registered Psychologist who has a private practice in Medicine Hat. She can be reached at 403-529-6877 or through email office@drlindahancock.com


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