While you may see yourself as an expert at doing more with less, this talent doesn’t always pay off when it comes to running a business. In many instances, understaffing can limit your ability to serve customers and grow the organization. From decreased productivity to increased stress and turnover, the costs of being understaffed can add up to major losses in your workplace.
Why Are Companies Understaffed?
A recent survey of small businesses found that 35 percent report being understaffed, and only about 21 percent have plans to hire new employees in the coming months. In the face of all the negative consequences that come with a lack of staff, why aren’t companies hiring new employees when they probably should be? The survey found that some of the top reasons for this trend include:
- Concerns about the economy and future cashflow
- An inability to find qualified workers
- Worries about rising healthcare costs
Risks of Understaffing
In the U.S., 85.8 percent of males and 66.5 percent of females work more than 40 hours per week. When companies are understaffed, the staff that they do have is often overworked, and the likelihood of them becoming stressed, tired or sick grow exponentially. When employees have to cover for an understaffed shift or work longer hours, they are more at risk of finding themselves burning out and developing a range of health issues. In fact, one study by the American College of Occupational and Environmental Medicine found that employees who work long hours with high job demands are more likely to develop depression.
Increased Absenteeism and Tardiness
Increased Employee Turnover
Missed Growth Opportunities
Diminished Customer Satisfaction
High Labor Costs
The Benefit of Forecasting Staffing
Forecasting your staffing needs is critical to a solid business strategy. Too many employees drive up overhead and directly affect business profitability, while too few limit the ability to serve current customers and grow the business. Understaffing may seem like a way to save money, but it will cost you in the long run.
At TPG Staffing, we know that a well-staffed business allows your employees to do their best work, which gives you the best chance of remaining successful in today’s competitive marketplace. Whether you need a temporary employee to help with a project or a team from the ground up to hit the ground running, we can help you build an optimal and cost-effective workforce. Call 732-246-7100 to learn more.