As much as we’d like to think hiring plans are set after the planning period, they should be considered a living plan. Instead of setting hiring plans and leaving them with recruiting to handle for the rest of the year, company leadership should be reviewing them frequently to ensure they still line up with market conditions, the pace of growth of your company and any other number of needs that may arise. At a minimum, you should conduct a mid-year review of your hiring plan to assess if you are on track to meet your goals.
This year, mid-year reviews are more important than usual as changing market conditions have shifted the way many companies are thinking about their budget and hiring goals. When evaluating your hiring plan, stop and consider if you have the talent you need, if your revenue and budget can justify bringing on additional talent, and the time it takes to fill certain positions.
The first step of reviewing your hiring plan is actually to take a step back and look at company financials overall. How are you tracking towards the revenue plan you put in place at the end of the year? Are you growing at the pace you expected? Faster? Slower? Once you know the answer to this question, you can evaluate if your hiring plan still makes sense. You may find you need to increase the number of open positions you need to fill this year, or as many companies are currently realizing, you may need to scale back your original hiring plan to adjust to slower overall growth or a change in market conditions that require you to be more conservative with cashflow.
Review Status of Current Hiring Plan
In order to fully understand how your financial review could impact your hiring plan, you also need to understand how you are pacing towards your current hiring plan. Are you on track to meet the original goal? Are certain positions moving slower than expected? Faster? Gather a full picture of your current headcount that includes current employees, accepted offers and the rate of turnover you are experiencing. While it may seem like something you should already know, many companies struggle to keep track of this information, especially if they are growing quickly.
Now that you know how your revenue compares to plan and have a better picture of how hiring has progressed throughout the year, it’s time to adjust your hiring plans as necessary.
If you’ve found that you need to slow down or stop hiring altogether, consider the talent you already have - can anyone be moved around to fill gaps within the company? Are there any planned roles that are absolutely essential? What about roles that have higher levels of turnover and longer hiring timelines? Review all current approved hires and determine which, if any, should still be part of the plan going forward.
Growing faster than anticipated? Consider expanding the original hiring plan. What areas of the team are struggling? Where can additional headcount make the biggest impact? Don’t forget to consider how increasing the hiring goals will impact recruiting and if you’ll need additional recruiters to meet the new demand.
Whatever your mid-year hiring review reveals, having quick access to headcount data can make the process go smoother. With TruePlan, companies can see their entire hiring plan, at a glance, as well as detailed metrics and analytics to break the information down even further.
Headcount Targets make the planning process smoother by allowing leadership to plan for different scenarios, set goals for each department, and pull the brakes on hiring if needed.