August 21, 2015
Can entrepreneurs and startups get projects done without hiring full-time staff for every department? For many companies, there are simple ways to spend less in compensation for labor, but things can become difficult if the company needs skilled labor and tech employees. For example, tech companies need more educated people, and they also need people who will stick around until the completion of a project.
Labor Blues Still With Us
Not having enough skilled labor has been one of the biggest hurdles since the recession. Although it happened some time ago, its shadow is still with us and, despite all the media announcements that all is well, the visible reality indicates otherwise. The fact remains: many small business owners are still not doing much hiring, which include small tech outfits.
Quite often, smaller companies continue to hire less workers than they actually need, resulting in an excess of work for their employees and a less effective and quick workflow. The recession may be officially over, but many companies have not yet adjusted their budgets. Small companies still spend less on labor and expect more.
The reason for this difficult situation is not only economic, as there are more reasons for small companies not hiring more people:
- Business owners have lost the confidence to make the commitment of hiring a full team.
- There is a lingering fear that the positive changes in the economy will not last.
- There is still a fear that the emerging economies will still be as fierce as ever, making it difficult to compete with countries that have lower overheads. They are technically competent and can steal away global market share.
- Small business owners are afraid that they will not earn enough revenue to cover salaries.
- There may be insufficient cash flow to keep people on board full-time. In many seasonal businesses, cash flow only rises during holidays. When there are no major holidays to stimulate a spending spree, it ebbs.
- Not enough young people study technical subjects, despite the fact that there is a desperate need for more tech workers. Many graduates seem unaware of how well the industry pays.
Problems Caused By Having Insufficient Staff
Not having the needed staff may bring some serious problems to any company. The most obvious one is that companies have to turn business away, which results in an unnecessary income loss. Even when companies can take on projects, those take much longer to complete. But there are some solutions that can solve or, at least, make these problems easier to handle.
Recruiting students from technical colleges and offering them an internship is a good option, having in mind hiring them in the future. Schools are happy to improve their own case studies, and students are happy to get real world experience and, if possible, some payment. The “apprenticeship model” has proven successful in many countries.
A Good Solution
Professional staffing solutions can offer the right talent at the right time, as companies get an employee who has the exact skills they are looking for. For example, it is easy to hire people familiar with a wide array of technologies, or someone skilled in cloud management, or hire a network engineer, a graphic artist or a software developer. This solution can not only help companies find who they need, when they need, but also do so while saving them some money.
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