So, the end of the year is near, and you’ve found that there’s some money left in your year-end budget – enough money, in fact, to hire another person ASAP. After all, who wants to waste money in the budget? If it can be put to good use, it should be – right?
Another question then looms, though: What would be the best use for that extra money? Gas prices are down, sure, but the economy is still in a rocky place…and all indications are that rougher waters still lie ahead. Is it better to spend it on a new hire, or save that surplus for a rainy day – or more strategic moves?
Spending Your Year-End Budget Surplus on a New Hire?
First off, it’s worth looking at why a company might want to take that money and pour it into a new hire. Many companies have been notoriously short-staffed, due to a variety of factors including budgetary concerns, mismanagement, and plain-old employee dissatisfaction.
Hiring someone new could make up for any staffing shortfalls, putting you on even footing going into the new year.
Caveat Emptor, Hiring Manager
Then again, what if that new hire turns out to be…a mistake? What if they don’t produce work at expected levels? What if something happens to your company in the first quarter, and you find you no longer have the funds to sustain that new employee in the new budget?
This isn’t an inevitability, mind you, but many analysts still believe we’re not at the trough of this economic downturn.
There are, of course, ways of ensuring that you get the right people in the right seats to get the results you expect and desire. So, it may be a risk you’re willing to take!
Why You Might Want to Spend that Surplus Another Way
On the other hand, hiring new employees as the economy heads south is generally something experts advise against. Why?
It’s (potentially) a rash move, especially considering valid concerns about whether a new hire will work out as you wish, and/or that your surplus suddenly dries up unexpectedly. You could be left with a payroll burden you can’t handle – not just with new hires, but with established and valued employees you can’t afford to lose…but also can’t afford to keep.
This doesn’t necessarily mean you have to save any year-end budget surplus indefinitely out of a sense of worry, but you can wait and see how things turn out early next year. What if that money could be better spent on marketing to grab new customers? What if it could go to upgrade your hardware? There are a variety of different ways to spend money that don’t involve hiring someone new.
Another way you could spend that budget surplus? Upgrading your hiring practices! Now is actually the perfect time to take steps experimenting with how to improve hiring. Just because it’s not smart to hire someone at the moment doesn’t mean you shouldn’t prepare for when the time will be right.
When is the Best Time to Improve Hiring?
The best time to evolve hiring is before you’re ready to post jobs, not in the midst of a hiring effort. Now, not later, is when you should be figuring out how to deploy pre-hire assessment tools to identify high potential employees who will go the distance.
You should work out the kinks now so that when happy times are here again, you and your HR department can hire more efficiently and effectively.
A Money Saver AND a Money Maker?
Oh, and best of all? Your efforts to improve hiring decisions won’t cost you anywhere near as much as hiring someone new! In fact, partnering up with pre-employment testing companies like Reveal could actually help you to reduce your time to hire.
If you didn’t already know, reducing your time to hire could save you even more money in the end; a penny saved is a penny earned, and that’s money you can add to your surplus!
What You Do With That Year-End Budget Surplus is Up to You
Look, what you do with any extra money you find in your budget towards the end of the year is totally up to you. If you feel that hiring someone new right now would be the right thing to do, then pull the trigger. Just know that you can still take steps to ensure that that new hire is a worthy one! And, if you decide to upgrade your hiring practices, those same steps still apply.
Whichever way you plan to go, plan to work with Reveal. You want to get the right people in the right seats, right? Well, Reveal’s C-fit technology – utilizing competency-based assessments – can help you achieve that goal.
Since the new year is just around the corner, why not start that year by focusing on how to hire for the future of your company, rather than just the moment? If you’re ready to see how you can improve your hiring for the long term, then it’s time to get real – and upgrade it with Reveal!