Our daughter is starting a new adventure. After some time in college, she has decided that her future is more appropriately suited for an energetic career path in cosmetology and beauty than in a traditional desk job.
As she begins this new path, it is also time to re-evaluate her mode of transportation. She currently drives a vehicle that is 10 years old and has substantial mileage. However, as she looks to move out of the house and needs reliable transportation, we decided a newer car is in order.
As a father, knowing that she will not be coming home every night where I can help her with any auto mishaps, and that she will be living in a different part of town, we want her to have a vehicle that will be dependable.
The journey now begins, and it makes me think of the parallels between this decision and how employers hire employees. Doing a deep dive on the variables will help to determine if it is better to have a permanent employee (buy) or whether a short-term commitment (lease) is more efficient and effective.
As a business owner or leader within an organization, taking these 3 considerations into account will help make the right decision for your business needs:
If the company is going through large growth phases, additional resources are many times necessary to help handle the growth. Examples of these roles include increased volumes for new client on-boarding, increased service levels with newer clients, and establishment and integration of new processes and technologies.
Utilizing contract resources or hiring an outside company to help with short-term staffing is many times advised since many of the roles may need to be released as the growth phase of the company begins to plateau. However, if growth will continue for long periods of time, having full-time roles (which may be more cost effective) may be a better and more sustainable option.
Hiring individuals in roles that are going to be “culture champions” will be most effectively able to perform this role in a full time capacity. While it is possible to have temporary or fractional roles get immersed in the company culture, a substantial amount of company culture immersion needs to be invested. Especially in roles that have influence over other employees and client facing roles, the cultural elements have the largest impact.
In roles that are “high profile” where the company strategy will depend on the role, it is important to staff these at the highest level. In many cases, these roles (C Suite and senior leadership type roles) come at a very high price, but it is important to invest appropriately to get the appropriate objectives set for the long term.
Many times, companies may be inclined to hire a fractional or temporary executive within these roles, where the company may get high-level thinking at a relatively competitive price.
Just as with other life decisions, making the decision to bring in full-time resources or bring in fractional or temporary resources should be an intentional decision with the strategic end goal in mind. These decisions around resources will have very profound effects on how your company performs as it experiences growth.
At Enlighten Fractional we have been helping companies make strategic decisions around buying or leasing for over 40 years. We are available to help companies in growth and transitional phases increase revenues while decreasing or maintaining operational costs, resulting in higher profit margins and operational scalability.
