Businesses tend to retract during recessions. Then once the recovery begins, they expand. Unfortunately, many businesses fail to expand soon enough and thus are unable to take advantage of the upswing to its fullest potential.
Companies that wait too long FAIL on two counts:
1) More progressive companies (Leaders) have already cherry picked top talent. So, if you are following the pack, the cost to hire will increase. Not only will you pay higher salaries, you will also spend more in recruiting costs to find top talent.
2) The length of time it takes to hire successfully will also increase for companies that delay hiring. This could jeopardize your companies ability to have the right people in place when business starts to roll in the door again.
As we continue our economic recovery, the greatest risk you may have is missing out on potential sales opportunities. Not having enough bandwidth to close sales leads is one possible scenario that could prove quite painful. Another scenario is not having adequate support to deliver your goods/services.
Missing out on sales opportunities and tarnishing your customer service reputation are two areas that can be easily controlled with progressive planning.
Invest and expand your team before your competition out foxes you. If you are too cautious and wait until you see everyone else hiring, you are too late.
Be a Pack Leader, not a Follower!