Keeping overhead down – Get your structure right!
12 August 2010
Whether you are running a large or a small business the key to success is to have a workable structure in place. If you can structure your business so that it is well designed “on paper” and has clear areas of responsibility it will be easier to delegate tasks. It can help to determine what area of the business performs what task and as well as outlining the management and reporting hierarchy.
It goes without saying that it is imperative for the entire workforce of any organisation to understand from day one the structure in place to enable the organisation to run smoothly and be efficient.
So what does a good structure look like? It's only when you put it down on paper that you start to see where the areas of duplication and idiotic reporting lines actually are. As you know Finance Directors and MD’s all over the UK are trying to keep overheads down and to do this they will be looking to ensure that structures are as nimble and effective as possible.
If your business has picked up you may make the decision to take on more staff. Of course this is completely up to the discretion of the management team, but before sending out a job advert why not consider the following alternatives that could ultimately save you money and time in the long run?
1. Consider increasing your part-time employee’s hours. They will already know the job so you won’t need to waste time training up a new recruit and they are sure to appreciate the extra hours.
2. Consider outsourcing any extra work to different agencies/sub-contractors as you may be able to get the work done for less than hiring a new recruit.
3. Consider asking other members of staff if they want more responsibility instead of instantly adding extra overhead in the form of a permanent employee. Sounds mad but sometimes people are keen to get exposure to different projects to help their own development and career.
4. Create a formal sign off procedure – ensure that all permanent positions need to be authorised by more than one senior manager. Again this seems simple but in some business it is too easy for a manager to add to their headcount. All of a sudden across a business 20 people are recruited without any cross referencing thus adding thousands of £££'s to the overhead.
The main advantage of these strategies is that if business does quieten down again, as is possible during this unstable financial climate, then you haven’t made the commitment of taking on new staff that you may now need to let go. By utilising the structure that is already in place in your organisation you can save money and time in the long run. A well organised structure can provide support in times of need so make sure yours is in place today.
If you need help organising a structure that works for your business, then please call us on 0845 4599710 or email info@pvhr.com where we will be happy to help.
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Article written by Alyson Pellowe: Managing HR Consultant People Vision HR |
