management and staffing in a business plan

How to develop a staffing plan

Lucid Content

Reading time: about 8 min

Your employees are one of your greatest assets. However, too often, organizations struggle to manage their human resources and plan for the future. In fact, according to a survey from the Society for Human Resource Management, 43% of HR professionals say human capital is the largest "investment challenge" for employers. 

Plagued by turnover, skills gaps, over-employment, low productivity, and ever-changing business landscapes, it’s no wonder that businesses are struggling to keep up. But these issues can be mitigated with a strategic staffing plan. 

Use the following tips to learn how to develop a staffing plan that puts the right people in the right place at the right time. 

What is a staffing plan?

A staffing plan answers the questions: 

• What work needs to be done?
• How many people do we need to employ?
• What skills and experience are necessary to do this work?
• What skills gaps need to be filled (and are there any areas of redundancies)?

Staffing plans can encompass the entire company or apply to smaller teams or departments and even individual projects. 

For example, if your company’s business goals focus on expanding its salesforce in the coming year, a staffing plan can help prepare the sales department for that growth—so that the right people with the right skills are brought on board at the right times. 

Additionally, a staffing plan helps your business to:

• Reduce labor costs and maximize productivity.
• Eliminate skills gaps.
• Increase employee engagement.
• Increase employee retention and reduce turnover.
• Improve customer experience.
• Streamline business growth.

Having a clear staffing plan helps prevent issues that could delay growth or hinder the quality of your products and services that could result in unhappy customers and lost business opportunities. 

Not only do staffing plans help companies effectively recruit, hire, and develop employees, but they also help guide budgeting and financial decisions within the organization. 

How to calculate staffing needs

A staffing plan involves three main steps:

• Determining current staffing levels 
• Forecasting future staffing needs
• Identifying the gaps between the two

Once you’ve assessed your staffing needs, you can outline recommendations for how to address those needs, which might include recruiting and hiring new talent, promoting internally, focusing on training and employee development, or adding contractors to your staff. These forecasts and recommendations will help you develop your overall human resources plan for the organization.

Use the following steps to learn how to calculate staffing needs and make a plan for the future.

1. Identify the business goals

Before you dive into staffing plans and changes, you need to know what the overarching goals are for the business. These goals are typically outlined in a strategic business plan. Use this plan to clarify the company’s objectives and align the staffing plan accordingly.

What you do with your staff will affect business outcomes (for better or for worse), so you want to make sure the two plans align.

For instance, if the business plans to open a new location, you may need to move current staff around or hire new employees to fill those roles. The business plan will help inform those staffing decisions.

2. Determine your current staffing situation

To develop a staffing plan, you must first understand your current staffing environment.

If you have a robust HR database, this step could be reasonably straightforward. However, if you host personnel information on multiple sources, you will first need to consolidate that data into one source of truth. Work with business leaders and managers to help you ensure accurate and complete data on your human resources.

Once you have your staffing data in one place, you can assess the current staffing environment and begin to pull actionable insights from the data.

Pay particular attention to:

• The number of people on staff
• Staff distribution (team size and who works where)
• Skills and competencies within the workforce
• High performers and potential leaders 
• Low performers or “flight risks” who could indicate turnover
• Staff age and tenure (to anticipate retirement numbers)

Pulling out these data will help you better understand the current staffing landscape and more accurately identify staffing needs and opportunities down the road. 

Lucidchart can help you assess your current staff to glean new insights. Import employee data directly into Lucidchart to build an org chart or group employees in Smart Containers by role, competencies, performance, etc. Visualizing your workforce can help you identify important relationships, correlations, or gaps in the staffing.

3. Forecast future staffing needs 

After you assess your current staffing landscape, it’s time to make some predictions about your future staffing needs. 

As you conduct your staffing needs assessment, you will want to consider the factors that can affect staffing decisions and opportunities, including: 

• Business goals 
• Turnover rates and projections
• Expected mergers or acquisitions
• New product launches
• Business investments (e.g., new technology) 
• Changes in the economy
• Competitors attracting key talent 
• Industry labor costs
• Unemployment rate 

All of these internal and external factors can influence the workforce and your staffing needs. 

While forecasting will always involve some guesswork, you can make confident, educated, (and more accurate) predictions using the following methods.

Trend analysis

Trend analysis works well for established businesses with several years under their belt. Trend analysis uses historical data (i.e., past experience) to inform future needs. 

To perform a trend analysis, start by gathering historical data. Focus on gathering information for at least the past five years—but you may want to go back as far as 10 years. (Keep in mind that the larger the sample size, the more accurate the results.)  

Collect data on the following: 

• Hiring and retirement patterns
• Transfers and promotions
• Employee turnover
• Years of service
• Employee demographics
• Skills and qualifications
• Past work experience

Once you have collected the data, you can analyze it to understand turnover rates over time as well as to discover trends or patterns between the data sets.

Ratio analysis

A ratio analysis is a dual-purpose forecasting method that both predicts staffing demand and compares forecasting results against an industry standard. 

The beauty of the ratio analysis is that it doesn’t rely on historical data to predict future demand. This is an advantage for younger companies who don’t have the benefit of years of historical data to provide insight into future trends. 

Here’s how it works.

A ratio establishes a relationship between two things. A business can calculate ratios between business factors like future sales revenue predictions and staffing requirements. 

For example, let’s say your business plans to expand its sales in the coming year and predicts sales revenue at $500,000. You’ll need to estimate how many sales employees you will need to support that growth. 

To calculate this, you need to determine the ratio between sales revenue and staff. To do this, divide current sales revenue by the current number of sales employees. If the ratio is 50:1 (with 50 representing $50,000 in sales), that means a sales revenue of $500,000 would require 10 employees. 

Once you have that ratio, you can then identify gaps in your staffing. For instance, if you plan to increase your sales revenue to $500,000 but currently have only five employees, you know you will need to hire five more people to support that goal. 

4. Do a gap analysis

With your current and future staffing assessments complete, you can compare the two reports for gaps. In other words, look at where your staff is now and where it needs to be. What discrepancies are there? Do you need more staff? Are there skills missing from your current workforce that you will need in the future to meet your business goals?

Note any gaps between the two assessments.

As you go through this process, our skills supply and demand chart can help you determine how many current employees and job candidates have the skills you need and whether you should hire or train to gain those competencies.

Make sure that your workforce has the skills and experience required to meet company goals. Learn how to conduct a skills gap analysis.

5. Make a staffing plan

With your staffing needs analysis completed, you can now make a plan. 

Your staffing plan might include recommendations to implement a corporate training program to address skills gaps or to develop succession policies to streamline handoffs following retirements or promotions. 

During this process, work with the business’s leaders to create a strategic action plan to address staffing needs that aligns with the organization’s goals, culture, and mission. 

Learn how Lucidchart can help your organization plan for the future and hire employees with the right skills.

About Lucidchart

Lucidchart, a cloud-based intelligent diagramming application, is a core component of Lucid Software's Visual Collaboration Suite. This intuitive, cloud-based solution empowers teams to collaborate in real-time to build flowcharts, mockups, UML diagrams, customer journey maps, and more. Lucidchart propels teams forward to build the future faster. Lucid is proud to serve top businesses around the world, including customers such as Google, GE, and NBC Universal, and 99% of the Fortune 500. Lucid partners with industry leaders, including Google, Atlassian, and Microsoft. Since its founding, Lucid has received numerous awards for its products, business, and workplace culture. For more information, visit lucidchart.com.

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How To Develop a Staffing Plan: A Step-by-Step Guide

• Templates & Guides

If you’re looking for a new and effective way to improve how your team and your business operate, a staffing plan may be the solution.

Staffing plans can provide a framework for all of your labor needs so you can be sure your business has the right number of skilled employees to meet the demands of your market — both now and in the months and years to come.

In this article, we discuss how to develop your own staffing plan and the software that can help get you there.

Table of contents

What is a staffing plan, how to develop a staffing plan.

• Busy restaurants need a staffing plan

A staffing plan is a collection of data points that measure and describe various aspects of the way your business operates, including foundational variables such as work activity, labor needs, and the time and money spent to get the job done.

With that information in hand, management (and your HR department , if you have one) can take steps to identify and predict:

• The current state of your workforce management
• Regular and recurring labor needs
• Skills your employees will need (both personally and for the business as a whole )
• Future labor needs and goals
• The steps your business will need to take to fulfill those goals

The process of developing a staffing plan can reveal all of that — and more. But how do you go about creating such a plan?

Read on to find out.

1) Review business goals

The foundation of a good staffing plan rests on the goals and strategies you have for your business.

These milestones provide direction to your organization as a whole and give your HR department and management a baseline with which they can start formulating important questions about the business, including:

• What are the highest-priority goals for the next 12 months?
• What departmental goals do we need to set to support the larger purpose?
• Do we need to reorganize or realign?
• How can human resource planning support the various levels of our organizational strategy?

The answers to these questions — and a thorough review and evaluation of business goals — will make up the framework of your staffing plan as it starts to take shape.

2) Look for conflicts and contributions

Once you’ve settled on the goals you want to use moving forward, the next step in developing a staffing plan is to look for conflicts and contributions.

Take a step back from the goals themselves and try to identify things that might help your business reach those goals. At the same time, try to identify things that might hinder your business along the way.

Conflicts and contributions can exist inside and outside your organization, so don’t limit where you look.

For example, your business may be affected by:

• A tight labor market
• Novel competitor activities
• Laws in your area
• Changes to responsibilities within your operation

Each of these could serve as a conflict or contribution to the way your team works and influence both the supply of talent you have available and the staffing plan you build to manage it.

3) Define where your business is now

Developing a staffing plan is like working backward on a road map: You put a pin in your destination and work your way backward, identifying places where you might slow down or speed up along your route until you reach your starting point.

In this case, your destination is achieving the various goals you’ve set. The slowdowns and speed-ups along your route are the conflicts and contributions you identified in step two. That leaves one variable undefined: your starting point.

After establishing where you want to go and the factors that affect your progress, it’s time to define where your business is now.

As you look at the current state of your workforce, make note of details like:

• Resources available
• Staff available
• Employee skills
• Employee knowledge
• Your business’s organizational chart
• The competencies your team needs to function

The data you gather in this step can help your business get a clear picture of where the operation is at right now and help you define the starting point of the staffing plan moving forward.

So, at this point, you’ve got a destination (the goals you want to achieve), an origin (the current state of your business), and the potential conflicts and contributions that could pop up along the way.

Now, it’s time to start planning how your business is going to move from start to finish.

4) Decide what you need to accomplish your goals

At this point in the process, it’s time to decide what you need to accomplish your goals.

Think of it like preparing for a road trip. You’ll need to choose a route, decide which vehicle you want to take, and finally, throw in some clothes, a bag or suitcase to put them in, and maybe some snacks and drinks to keep you fueled during the journey.

You can use the same idea to figure out what your business needs on the road to achieving the goals you set in step one.

Make a list of everything your business might need for the “trip” — whether it’s available to you at the moment or not.

Include things like:

• Physical resources

Once you have a list of the things you need, it’s time to separate that list into what you have and what you don’t have.

5) Figure out what’s missing

Next, go through everything on your “needs” list and determine what’s missing.

For example, you may have decided you’ll need a team of 10 to accomplish your goals. But maybe your business only has eight employees right now. Obviously, you know you’re going to need to hire two more employees before you start out.

6) Build a staffing plan to fill in the gaps

Now that you have information for all of the variables — goals, conflicts and contributions, starting point, needs, and shortfalls — it’s time to build a staffing plan to fill in the gaps.

At this point, you’ve done most of the work already. You just need to map out how your business is going to make sure it has the resources necessary to make the journey as successful as possible.

Then, all that’s left is to start the engine and put your staffing plan into action .

Staffing plans for busy restaurants

The restaurant industry is notorious for its employee turnover , but that’s just the nature of running a busy food-service establishment.

You can help cut down on turnover chaos by building a staffing plan for your business. This plan may be able to help you focus on hiring for skill , fit, and longevity instead of just finding someone who can do the job today and be gone tomorrow.

In fact, hiring the right person based on your labor needs and your staffing plan can help your restaurant develop a reputation for quality service.

And that doesn’t just come from your servers . Everyone from the head chef to the dishwashers and food runners can help your restaurant stand out from the crowd.

But it all starts with developing a staffing plan that can help you find exactly what your food-service business needs to get ahead.

Manage your staffing plan with Sling

Once you’ve built a staffing plan that’s right for your business, it’s time to put it into action. That involves managing everything from the hiring and firing process to the way you organize and optimize your team.

The Sling suite of tools can help you simplify and streamline all of that and give your business unprecedented control over the finer and more difficult points of workforce management , including:

• Employee scheduling
• Labor costs
• Time tracking
• Attendance tracking
• Task management
• Communication
• Employee documents
• Labor compliance
• And much more

Try Sling for free today to see how it can help you take your staffing plan off the paper and make it into a reality.

And, for even more free resources to help you manage your business better, organize and schedule your team, and track and calculate labor costs, visit GetSling.com today.

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This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for specific advice.

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6 Steps To Create a Staffing Plan That Covers Your Business and Resource Needs

See how to create a complete staffing plan by diving into forecasting, financial metrics, and team capacity.

Marcel Petitpas,   Agency Profitability Expert

• people management

Are you struggling to find the perfect balance for your team? You're not alone. Creating a staffing plan is essential for achieving business success and reaching your strategic goals. 

This process involves forecasting, analyzing past projects, and pinpointing areas that need improvement. Your delivery team might say they're swamped, while your financial team claims you're overstaffed. It's tough to know who to believe, right? 

Remember, it's crucial to put people first when planning your staff. Make sure your team members have the right skills and are well-rested and well-utilized. By crafting a well-thought-out staffing plan, you'll be on your way to building a strong, effective team that drives success and helps you achieve your strategic goals.

In this post, we'll show you how to use objective data to get the clarity you need to decide when to hire and how much staff to add, as well as gauge the efficiency of your investments. Creating a staffing plan is a simple task, but there's more to it than meets the eye. 

Stick with us; we'll guide you through this process to set your business up for success!

Step 1: Understanding your business economics

What needs to be true for your staffing plan to make economic sense?

The process of creating your staffing plan can be started by zooming out and taking a look at your business through a set of metrics that will help you answer whether or not your agency is healthy and has the right balance of staff and income.

By understanding the key metrics, and pairing them with your current position and future goals, you’ll have a solid foundation to work upon.

A.) Delivery margin

Delivery margin, or the profit generated from the sales of services after deducting the cost of producing or providing them, is considered one of (if not the) most important metric to track at your agency from a financial perspective. The formula is simple:

Delivery margin = Agency gross income (AGI) - Delivery expenses

Or on a percentage basis:

Delivery margin (%) = (AGI - delivery expenses) / AGI

The delivery margin percentage represents the portion of each dollar of revenue that remains after deducting delivery expenses.

Your delivery expenses, as mentioned below, will mainly consist of your staffing costs and other expenses like tools, fees, supplies, etc. If you’re aiming for a 60% delivery margin, meaning that for each dollar you make as an agency, you keep 60 cents of it, then you must ensure that your staffing expenses will line up with that. If you’re only keeping 40 cents of each dollar you make, you might have to consider a tweak in your staffing plan to hit your goal. 

B.) Overhead benchmarks

In addition to monitoring your staffing plan based on the delivery margin you're making, it's essential to ensure that your overhead spending ratios align with your current staffing plan.

Having worked with hundreds of agencies and financial statements over the years, we at Parakeeto have developed a benchmark range that successful businesses should aim to operate within for a sustainable agency. These benchmarks can be divided into three overhead areas:

• Sales & marketing department: Aim for 8-12% of your AGI (Agency Gross Income).
• Administration: Target 8-12% of your AGI as well.
• Facilities: Strive for 4-6% of your AGI.

Keep in mind that the ranges for each department aren't necessarily set in stone, as we understand that every agency is unique. What's most important is that your total overhead (the combined expenses of all three departments) falls between 20-30% of your AGI.

C.) Salary allocations

It’s important to benchmark all of these financial metrics having factored in the cost of your team in each of those buckets. This means attributing each person’s salary across these areas of your organization to understand the impact that their salaries have on your financial health and the balance of these different spending categories as you update your staffing plan. 

You may realize that after tallying up salary expenses for your S&M team that you’re far too invested in this team, above the benchmark range listed above. Conversely, the opposite could also be true. 

Being aware of salary allocations and adjusting your staffing plan accordingly can help ensure that your organization remains financially balanced and on track to achieve your goals.

D.) Staffing impacts on delivery margin

Let's examine how your staffing can affect your delivery margin, the factors that influence it, and how to keep it under control. There are three factors that impact your delivery margin , all of which relate to your agency's staff: Average cost per hour (ACPH), average billable rate (ABR), and utilization.

Scenario 1:

Imagine you're considering closing a deal and wondering how much you can discount the price while still being profitable. You're aware that payroll is your agency's most significant cost, but do you know how much each hour of your team's time costs you to appropriately mark up those hours?

That's where ACPH comes into play. This metric directly affects your delivery costs and, consequently, your delivery margin.

Scenario 2:

Suppose you're deciding whether to add a new team member. The first question you'll ask yourself is, does this department need another team member?

Utilization , or the amount of time your team spends on revenue-earning activities (in delivery), helps you determine how busy your team is. It's also an opportunity (or risk) for moving your delivery margin metric.

The busier your team is with revenue-earning activities for the agency, the higher the overall delivery margin you can expect (assuming that time isn't spent over-servicing). Conversely, the more your team has to wait for more work to be won, the less efficient their time usage will be.

Scenario 3:

Imagine you have capital to invest in additional team members, and your company offers design and development services. By calculating each revenue stream's average billable rate , or how efficiently revenue is earned, you'll be able to compare the two and decide where you'll get the most value for your investment. You'll also gain more clarity on the revenue capacity a given team member should add to your business.

Tracking billable hours can be done with a simple spreadsheet, but using a dedicated tool helps you avoid errors and bill clients correctly. You can also test our new timer to see how you can take the hustle out of time tracking.

Step 2: Develop a capacity model

Start by creating a capacity sheet where you can model the following details for each team member:

• Salary, benefits, commissions, and payroll taxes
• Role and department
• Total hours worked by the individual
• Number of hours spent on delivery tasks and other departments they may work in

Consider these departments:

• Sales & marketing (internal)
• Administration/back office (internal)

Once you've gathered this data, the capacity sheet will help you understand how much of your payroll costs can be allocated to each department in your business. It will also give you an idea of how many hours your team has available to complete deliverables . You can find a template for a spreadsheet like this in our free agency profit toolkit .

An optional but valuable concept to consider is the role category . The goal is to group your capacity into a few meaningful subsets of delivery. Choosing a role category for each team member might be challenging, but try to make it work by rounding the edges a bit, and we can refine the details later. 

For example, here's what a role category exercise might look like for a design firm:

This model, with role categories defined, allows you to drop a potential hire into your plan and immediately see how it impacts a subset of your business. It will also show you how much revenue you need to add to fully support them, how it impacts your utilization target, your potential delivery margin and overhead ratios.

Capacity planning made easy

With Float's resource planning tool, you can track real-time capacity to plan project work with confidence and keep your staffing plans informed.

Step 3: Develop a financial forecasting model

Understanding the three values that impact delivery margin helps you build a financial model that projects into the future.

Let's work through an example to see how this is done. We'll start with a simple case of a designer on your team using the following capacity grid, which you can create using the agency profit toolkit :

Capacity for one team member

In this example, we have a designer named Tina who works 40 hours a week (2,080 hours a year) and makes $100,000 in total compensation, including benefits, commissions, and payroll taxes. Tina is expected to deliver 32 hours of work to clients each week, and she's likely to take 30 paid days off this year.

To forecast financially, we need to figure out how much revenue (AGI) Tina can generate using this formula:

AGI = (Capacity x net utilization) * ABR

Tina's annual capacity is 2,080 hours.

Utilization

We calculate Tina's projected utilization rate based on her weekly expectation to deliver client work. Out of 40 available hours, Tina is expected to bill 32, giving her an 80% utilization rate.

Gross delivery capacity

Tina's gross delivery capacity is her total capacity (2,080 hours) multiplied by her utilization rate (80%), which equals 1,664 hours.

Net delivery capacity 

Before using the formula, we must account for Tina's time off. Converting her 30 days of annual leave into hours (8 hours a day) gives us 240 hours. These 240 hours can't be billed to clients, so we need to subtract them from Tina's original delivery capacity and recalculate her utilization.

Gross Delivery Capacity - PTO Hours 1,664 - 240 = 1,424 delivery hours

To find Tina's net utilization, divide the new delivery hours (1,424) by her total available hours (2,080). This gives us a net utilization of around 68%.

Your standard rate

For ABR, this is the rate you'll charge for Tina's time. Let's say it amounts to $200/hour.

Putting it all together

AGI Capacity = 1424 * 200 = $284,800

You can expect Tina to add $284,800 of AGI capacity to the business, meaning you should be able to sell and deliver roughly that amount of extra work, assuming things work out as modeled.

The levers mentioned above, namely, average billable rate (ABR), average cost per hour (ACPH), and utilization, can significantly impact your margins. If someone is only half as utilized as you planned, they will generate much less revenue for your agency. Conversely, even small increases in utilization or ABR can positively impact your bottom line.

If you feel understaffed but don't have the funds to hire more employees, you may have an efficiency issue with your current team. In such cases, assessing your capacity model and identifying opportunities to improve utilization and optimize ABR to achieve better margins is essential.

This table illustrates the revenue capacity and margin for the same team as improvements to utilization, and ABR are made

Small tweaks in utilization or ABR can significantly impact budgets and margins. By understanding the revenue targets you need to set based on your staffing plan, you can ensure financial sustainability for your agency. 

Additionally, since your capacity model includes department allocations, you can get an idea of how much you're spending on each department in terms of payroll and compare it to the overhead benchmarks noted in Step 1 to assess whether you're on track.

Step 4: Develop a planned work model

Developing a planned work model is crucial to plan your work effectively . 

This can be as simple as tracking the number of scheduled hours for a project or set of projects and then comparing this to your capacity model to see how much work you have planned and how it relates to your current staffing. This is where the role categories you defined in Step 2 come into play.

For example, imagine you run a creative studio that offers various media projects such as brand kits and websites. Your role categories might include design, development, accounts, and strategy. If you've sold a project for a small brand kit to a new agency that needs to be delivered within a week, you can use the role categories you've defined to list the planned hours for this project.

Once you have this information, you can compare it to your team's capacity for each role category during that period to determine if your team can handle the workload.

For example, the design team might have a capacity of 96.2 hours per week, while the strategy team might have a capacity of 28.8 hours per week. By comparing your planned hours to your capacity, you can ensure you're staying focused on your team and risking burnout or missed deadlines.

It's also essential to consider developing a simple set of products or service lines to create meaningful segmentations of your work. This will help you collect better data for estimation and forecasting purposes in the future.

Step 5: Forecasting your staffing needs

The next step involves forecasting your staffing needs. However, before you dive into the details of your resource plan , it's essential to understand the difference between precision and accuracy. Being overly detailed in your plan can harm your accuracy, so keeping it simple is vital.

People often use a bottom-up approach when creating a staffing plan. This involves breaking down a project into smaller tasks and assigning them to individual contributors to understand how their work matches up to their capacity. While this approach is precise and provides insight into team capacity in the short term, it becomes less effective early on in a project's lifecycle or for longer time horizons and can create problems when changes need to be made.

That's where top-down forecasting comes in as a more helpful approach for getting forward visibility into your staffing needs. It's more focused on accuracy than precision and involves using higher-level estimates about projects, often using historical data to estimate the time required by role category. By rolling capacity up into role categories, we remove a lot of the precision that slows down the process of building a capacity model while maintaining a reasonable amount of accuracy when looking forward over longer time horizons and running multiple scenarios.

As the project progresses and the scope and sales process are de-risked, the forecasting process can move towards a more precision-focused approach. Eventually, the project management team will generally use bottom-up forecasting throughout the project to maintain accuracy and ensure that the team has the necessary resources to complete the project successfully.

➡️ Learn more about how to conduct effective resource forecasting .

Step 6: Install feedback loops

When creating a staffing plan, it's important to remember that plans are built on assumptions. Agency operations involve taking assumptions about client work and projecting them into the future. However, sometimes those assumptions are wrong, and the plan falls apart. 

So, what can you do to be ready for anything? The answer is to install feedback loops.

By setting up a feedback loop, you can continually improve the accuracy of your models and forecasts. To do this, you need to track three important metrics: Scoping accuracy, average billable rate (ABR), and utilization.

Scoping accuracy involves comparing your estimates of the time required to complete a project or group of projects with what happened. Did your estimates match up with the actual results?

The average billable rate (ABR) tracks your rates trending over time. Is the ABR different depending on the service offering or the person doing the work? 

Utilization measures whether or not you're hitting your targets. Are you using your resources effectively? Is utilization different depending on the person or the role category?

To set up this feedback loop, ensure that your time-tracking data is aligned with the structures discussed in earlier steps (capacity model, planned work, etc.). Your project names, service lines, products, and role categories should be consistent in your time tracking or project management tools. This will make comparing estimates vs. actuals easy and not require hours of data transformation, cleaning, organizing, etc.

Set a regular cadence to measure these metrics, and use the information you gather to adjust your models and forecasts. By continually tweaking your staffing plan based on the feedback loop, you'll be able to adapt to changes in your business and improve your accuracy over time.

Track time and utilization easily with Float

Track hours worked with our pre-filled timesheets, and keep track of team utilization throughout projects.

Who can you look to for this information?

When collecting the necessary information to create a comprehensive staffing plan, it's important to remember that you might need help to gather all the data. 

Different parts of your business will have separate data and processes relevant to the staffing plan. Your financial, operational, HR, and delivery teams will all play a role in providing the information you need.

Creating a staffing plan is a group effort, but you may be responsible for bringing it all together and making sense of it. Feel free to contact your colleagues in different departments and ask for their input. Collaboration is critical to creating an adequate staffing plan.

Maximizing your agency's success with a staffing plan

A comprehensive staffing plan is crucial for any agency to maximize its success. Your team is the lifeblood of your business, and having the right people in the right roles at the right time is essential.

Creating a staffing plan may seem daunting, but you can make informed decisions about hiring and resource allocation by developing models, monitoring KPIs, and setting up feedback loops. Collaboration with colleagues from different departments is also crucial in this process, as they can provide valuable insights and help collect necessary data.

By dedicating time and resources to creating a comprehensive staffing plan, you can create a data-driven approach to staffing that will allow you to adapt to changes and make informed decisions. This will not only support your agency's success but also ensure your team's well-being.

With a comprehensive staffing plan in place, you'll be well-equipped to face any challenges that come your way and make the most of new opportunities.

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How to succeed in your agile transformation journey, your agency's guide to improving operational efficiency, the ultimate guide to resource management for 2024.

How to Build a Staffing Plan [Free Template]

Your workforce is your most important asset. Whether you provide a product or service, the quality of your offerings hinges on having skilled and engaged employees . Securing or maintaining that sort of talent is challenging even in a calm market, but you can smooth bumps in the road with a carefully planned staffing strategy.

A great staffing plan can help you to anticipate employment changes ahead of time, more easily make hiring decisions, streamline transitions, and even improve productivity through training. Building a plan will require more than a little internal and external research, but today we’re walking you through each step.

Need an example staffing plan to get an idea of what this entails? We’ll do you one better. Download our free staffing plan template and start mapping out your organization’s needs today.

Staffing Plan Template

Not sure where to begin when creating a staffing plan? Use this template to help you get started. Click the button below to open the template in Google Sheets.

1. Identify Your Organization’s Business Goals

Optimizing your staffing plan starts with a look at the big picture. By pinpointing your business’s short and long-term objectives and aligning your plan to those goals, you’ll be making it easier to determine your staffing needs both now and down the road.

When you’re outlining your business goals, be sure to consider the following factors:

New projects, products, and initiatives. Not only could these mean additional staff is necessary, but knowing what’s coming can help you pinpoint needed skill sets.

Upcoming strategic changes. Shifting to remote or hybrid work , returning to the old office or opening a new one, and organizational restructuring will all impact your staffing needs.

Any new tools, technology, or platforms you might be planning to adopt, as well as the skills needed to use them. New technology like AI is changing the way many jobs are done. If you’re planning on adopting a new tool, not only will you need to consider how it will affect how much staff you need overall, but you’ll also need to plan to close skill gaps that these new tools open.

Clear-cut goals for metrics like productivity, sales, and customer satisfaction. Factors like these can help when deciding staffing needs later.

Recruiting and retention. Is your business expanding, staying the course, or possibly looking to shrink? Be sure to consider these factors in both the short and long term.

2. Audit Your Current Staffing Layout, Top to Bottom

Next up, you’ll want to take a critical look at your current workforce. Here’s the information you’ll need:

Workforce demographics , including basics like how many employees you have and finer details like tenure, age data, and hiring and turnover rates . Knowing when to expect retirement or turnover can help with anticipating future staffing needs.

Job description data. Familiarize yourself with what roles are available, what work is being done, and what skills are necessary to complete tasks.

Employee skill sets. Chart out which skills are available in abundance at your organization and which skills are more in demand – this is your skill gap analysis . Be sure to include skill sets that may become necessary due to new positions opening or new tools or tech being adopted.

Performance data. While low performance is obviously something you’ll want to pay close attention to and address with additional training, make a note of high performers, too. Recognize their efforts, consider them for promotions, and be aware that they could be snatched up by other businesses in your industry.

Depending on the size of your organization, this could be the most difficult part of the process, but it’s still crucial. Utilizing software that centralizes and aggregates this information for you can make this task a whole lot easier.

3. Map Out Realistic Staffing Needs

Once you know your organization’s goals and current staffing situation, use that information to forecast your staffing needs. Predictive analytics tools can be a great help here, as such software can quickly pinpoint potential trends in employee habits, productivity and turnover that could be useful for you.

You’ll want to look at:

Internal business needs. Knowing your company’s plans for the future, do you anticipate new positions opening or old ones becoming obsolete? Do you have departments that have a surplus of talent or ones that need a helping hand? You may find that you need to create new positions, consolidate old ones, or arrange training.

Internal trends for retirement, leave, and retention. Given this information, do you think you will have enough staffing to tackle your business goals? You may need to make plans to fill upcoming gaps.

Skill gaps. Utilize that skill gap analysis you made when you audited your current staffing plan to identify hiring and training needs. Keep in mind that a gap in skills doesn’t necessarily mean a new hire is necessary, according to Harvard Business Review , 68% of workers worldwide are willing to retrain their skills.

Internal employee needs. How is engagement at your company? What are your turnover rates? Are you offering competitive salaries and/or benefits packages that provide access to services your employees find useful? Changes may be necessary to improve retention.

Internal candidate availability. Your top performers make great candidates for promotion.

External candidate availability. Familiarize yourself with market and hiring trends for the skills you might want. You’ll want to know whether a role is in high demand or not.

Your competitors. An important part of your staffing strategy will be making sure you’re market competitive. Research current roles, compensation offerings, and growth in your industry, not just internally.

4. Build and Implement an Organic Strategy, Not a Monolithic One

By mapping out goals, current assets, and needs, you've already done the bulk of the work for creating a staffing plan.

Update or create policies for succession and training for all positions to ease transition after retirement, promotion, or turnover.

Outline how hiring, promotion, and staff reduction decisions should be made if such policy doesn’t exist already, or bring those policies better in line with your company’s goals or values, if necessary.

Track all current and anticipated positions. Identify their budget requirements, skill needs, and current hires in those positions.

Take another look at your job descriptions. Part of your plan should involve ensuring that role responsibilities and expectations are well-defined, realistic, and clear.

Plan how gaps will be filled. Work with leadership to determine whether you will meet your staffing needs with new recruits or internal training and promotion.

Don’t reinvent the wheel. While you’ll certainly need something that fits your organization’s unique needs, you don’t need to start from square one. There are plenty of example staffing plans available online. Use a staffing plan template like the one we’re providing here as a jumping off point to build something that suits your needs!

Update it regularly. A staffing plan should be a living policy, one that grows and changes as your company does. Don’t treat it as a monolith, unchanging once complete. Be open to reviewing and revising it at least annually to keep it optimized.

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Staffing Management Plan: Definition and Steps

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• December 21, 2023

Home » Blog » Staffing Management Plan: Definition and Steps

In the ever-evolving business landscape, where adaptability and agility are paramount, one aspect remains constant: the significance of human resources. The right team can make or break a company’s success, and that’s where a staffing management plan enters the scene. This strategic document serves as the compass that guides human resources and management in aligning staffing needs. It goes beyond mere recruitment, delving deep into the intricacies of workforce assessment and employee development.

In this article, we embark on an exploration of the staffing management plan, understanding its definition, key elements, the myriad benefits it brings, and examples of its successful implementation. Let’s get started!

What Is a Staffing Management Plan?

A staffing management plan is a strategic blueprint for an organisation’s most vital asset – its workforce. In a rapidly changing business environment, where the competition is fierce and the demands of consumers are ever-shifting, staffing management plan emerges as a guiding light for businesses. It is a dynamic framework that outlines the systematic management of an organisation’s human resources, ensuring they are optimally aligned with its overarching goals and objectives.

This multifaceted plan takes into account a plethora of factors – from the current workforce’s composition and skillset to predicting future staffing needs, defining roles and responsibilities with precision, formulating recruitment strategies, and even planning for training and development. A staffing management plan doesn’t just prepare a company for the present; it equips it for a thriving future.

Read more: What contributes to staffing costs

Key Elements of a Staffing Management Plan

Creating an effective staffing management plan involves several essential components:

1. Workforce Assessment

Before any strategic moves can be made, a comprehensive evaluation of the existing workforce is indispensable. This involves a meticulous analysis of the skills, experience, qualifications, and even aspirations of current employees. By understanding the strengths and weaknesses of the team, an organisation can make informed decisions about where to invest in training and development and whether any gaps need immediate attention.

2. Forecasting Staffing Needs

Anticipating the future staffing requirements is like peering into a crystal ball for HR professionals. To plan for growth, expansion, or adaptation to changing market conditions, organisations must predict the quantity and type of talent they’ll need. This means considering potential retirements, resignations, or creating new positions to cater to evolving business demands.

3. Job Analysis and Role Definition

One of the foundations of a successful staffing management plan is a crystal-clear understanding of the roles within the organisation. This involves breaking down each position and defining its responsibilities, qualifications, and potential career progression paths. Such a detailed job analysis not only helps in recruitment but also guides employees in understanding their roles and responsibilities.

4. Recruitment Strategy

How a company attracts and selects new talent is a crucial element of the staffing management plan. This may involve a blend of internal promotions, external hires, or even outsourcing for specialised skills. An effective recruitment strategy ensures that the organisation consistently attracts and retains high-quality talent.

5. Training and Development

To remain competitive and adaptable, employees need growth opportunities. The staffing management plan should identify areas where training and development programs can enhance the skills and knowledge of the workforce. These programs not only benefit employees by allowing them to expand their skill set but also equip the company with a more versatile and capable team.

Read more: Navigating Manpower Shortages in the F&B Industry

Benefits of a Staffing Management Plan for F&B Businesses

Implementing a robust staffing management plan is especially vital for businesses in the F&B industry, where service excellence and operational efficiency are paramount. Let’s delve into the specific advantages tailored for F&B establishments:

1. Enhanced Workforce Productivity

In the fast-paced environment of F&B, having the right staff in the right place at the right time is critical. A well-crafted staffing management plan ensures that your team is optimally deployed, minimising downtime and maximising efficiency. This results in quicker service, happier customers, and ultimately, increased productivity.

2. Cost Savings

Controlling costs without compromising on service quality is a perpetual challenge in the F&B sector. A staffing management plan helps in optimising staffing levels based on demand, preventing over-staffing during quiet periods and avoiding the costly pitfalls of understaffing during busy times. This not only saves on labour costs but also enhances the overall financial health of the business.

3. Improved Employee Satisfaction

Content and motivated employees contribute significantly to a positive customer experience. By aligning their skills and interests with their roles, a staffing management plan fosters a more satisfied workforce. In the F&B industry, where employee turnover can be high, investing in employee satisfaction pays dividends in terms of both customer service and operational stability.

4. Better Workforce Planning

The cyclical nature of F&B businesses demands a keen understanding of seasonal fluctuations and customer trends. A staffing management plan enables businesses to anticipate these variations and plan their workforce accordingly. This foresight is invaluable in ensuring that the right number of staff is available during peak times and minimising excess capacity during quieter periods.

5. Competitive Advantage

In a crowded market, setting your establishment apart is key. A well-executed staffing management plan not only ensures smooth operations but also allows F&B businesses to be more agile and responsive. This agility is a significant competitive advantage, enabling businesses to adapt to changing consumer preferences and market dynamics swiftly.

Read more: Shift Roster Scheduling in the F&B Businesses

Tips for Developing a Successful Staffing Management Plan for F&B Businesses

Crafting a successful staffing management plan tailored to the unique demands of Food and Beverage (F&B) businesses requires careful consideration and strategic thinking. Here are essential tips to guide you through the process:

1. Understand Seasonal Demands

F&B businesses often experience seasonal fluctuations in customer demand. Analyse historical data to identify peak periods and plan staffing levels accordingly. This proactive approach ensures that you have the right number of staff during busy times, preventing service bottlenecks, and allows for cost-saving adjustments during slower periods.

2. Flexibility in Scheduling

The nature of F&B work can be unpredictable, with varying levels of customer traffic. Build flexibility into your staffing schedules, allowing for quick adjustments based on real-time demand. Consider implementing shift-swapping mechanisms or part-time staff arrangements to accommodate fluctuations without compromising service quality.

3. Cross-Training and Multi-Skilling

Develop a versatile workforce by cross-training employees in various roles. This can enhances their skills and provides flexibility in staffing assignments. During peak hours or unexpected staff shortages, having team members who can seamlessly switch roles ensures uninterrupted service and a more resilient operation.

Read more: How to Run a Successful Restaurant Business? 11 Pro Tips

Reach the Top Talent Effectively with Applicant Tracking Software

In the fast-paced realm of modern business, securing top-tier talent efficiently is the linchpin of success. Enter Applicant Tracking Software (ATS) – a revolutionary tool designed to elevate your hiring process. As we delve into the intricacies of effective talent acquisition, it’s vital to explore the features of StaffAny’s ATS, a solution crafted to streamline your hiring efforts and seamlessly integrate with your staffing management plan.

StaffAny’s applicant tracking software is a game-changer, propelling your hiring process to new heights and enabling hiring managers to discover the perfect candidate in half the time!

1. Reach Out to Jobseekers

Efficiency meets efficacy with StaffAny’s ATS. With the auto-generated QR code and URL feature, disseminating multiple job openings becomes a breeze. This streamlined process not only simplifies your job posting efforts but also significantly enhances your reach to potential candidates across diverse job boards and external platforms. Imagine aligning your staffing needs with your business goals seamlessly – that’s the power of effective recruitment. 

2. Manage Applicants Across The Hiring Process

As your applicants submit their details, the magic begins. StaffAny’s ATS enables hiring managers to initiate candidate evaluations promptly. The convenience of effortlessly accessing applicant details and seamlessly tracking candidates all within a unified platform ensures a swift and organised approach to your recruitment efforts. This level of efficiency perfectly complements the strategic vision of your staffing management plan, ensuring you build a workforce that propels your business forward.

3. Customise Your Job Application Form

Tailoring your recruitment efforts to pinpoint the most qualified candidates is paramount, and StaffAny’s ATS empowers you to do just that. The customisable application form, equipped with precisely tailored screening questions, becomes your secret weapon in identifying the ideal staff for your job openings. This innovative feature enhances the efficiency of your recruitment process, aligning seamlessly with the goals outlined in your staffing management plan.

Ready to revolutionise your hiring process? Elevate your recruitment game with StaffAny’s applicant tracking software. Give your staffing strategy the boost it deserves – streamline your scheduling with StaffAny today!

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5 Steps to an Optimal Staffing Plan

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When your business is facing significant growth, it's crucial to get ahead of the need for talent with a staffing plan. Here are five steps to ensure that your organization has the right people with the right skills to achieve your growing business objectives.

A staffing plan helps ensure the workforce can meet the organization's business objectives.

A solid staffing plan pulls from multiple sources of information to identify and address ways to fill skill and experience gaps.

A good staffing plan is flexible and requires top-down support and organization-wide effort.

When your business is facing significant growth, it's crucial to get ahead of the need for new talent. A staffing plan backed by a methodical process helps ensure your organization has the right people with the right skills to achieve your growing business objectives.

What is a staffing plan?

A solid plan should go beyond changes in headcount to identify the new skills and knowledge your business needs while remaining sensitive to the relationship between internal and external needs.

A comprehensive strategic plan addresses three things:

• Short-term needs for a temporary or seasonal increase in employees
• Long-term needs for skills and positions needed for the foreseeable future
• Succession planning to ensure potential employees get the training and development needed for promotion into key positions

Why is a staffing plan important?

A solid plan creates a blueprint to ensure recruiting, retention and development efforts are aligned with the business needs. Without a proper plan, your organization may find itself scrambling to fill last-minute roles or losing multiple long-time employees who feel underappreciated.

5 steps to making a staffing plan

Here are five steps for creating a plan to help your organization keep up with its potential and ambitions.

1. Determine your goals

Simply put, the staffing plan must support the business plan. What is the organization's plan for growth? Does it need personnel to staff a new office or retail location? Is it hoping to multiply the size of its sales force to support a significant sales push? Does it intend to offer additional customer service or internal support to boost customer satisfaction?

These objectives are typically outlined in the business's strategic plan, so look there first to set up an alignment between talent strategy and desired outcomes.

2. Understand labor trends

Next, identify the labor trends that can impact the availability of personnel. Large national organizations should first review relevant data from the U.S. Bureau of Labor Statistics and ADP resources such as the National Employment Report and Pay Insights . These resources provide historical and up-to-date, sortable details on topics such as the number of job openings, unemployment rates, average labor costs, changes in employment numbers, and typical pay rates.

Large and small companies alike should examine similar statistics for their state or local region. This information is available from local chambers, business publications and industry associations.

As a bonus, these entities often synthesize the data to provide an overview of developments in the market. That can include new businesses or other larger employers increasing their hiring or laying off employees. All of these external factors affect the pool of talent available.

3. Determine the organization's functional needs

Keep in mind that not all personnel requirements necessitate hiring externally. Some of your organization's talent needs can be groomed internally, and others may be met by outsourcing to consultants, freelancers or independent contractors. That's why it's smart to assess the specific skills and abilities you need and ascertain whether each group, department or division already has those capabilities, either in-house or close at hand.

Ask whether training, mentoring or other development help current employees move up or over into the new or vacated positions. If so, what might this development look like? On the other hand, are these skills and personnel needed indefinitely for the long term? Or are the organization's needs more specific and short-term, like for a particular project, an initiative that calls for skill sets not found in-house or a time commitment simply not manageable for existing personnel?

4. Conduct a gap analysis

In essence, a gap analysis compares what you have with what you need. The difference or gap is what needs to be filled. Are the gaps your analysis identifies due to training and development deficiencies? If so, consider incorporating more training for the applicable functions or positions into your plan. Are the gaps due to heavy workloads during high seasonal demand periods? If so, think about hiring temporary workers or outsourcing to contractors.

A gap analysis isn't quite the same as generally determining functional needs. Asking a series of questions like the ones above will allow you not just to determine the gaps but also potential solutions for filling them.

5. Write out your plan's details

The final step is to roll all this information into an actionable talent plan. Once you have compared what you have with what you need, it's time to get granular with a plan that's tailored to your organization. Include factors like:

• Current workforce . Understand where employees are and where they're headed. Span all applicable groups, departments and divisions. Look at the current organization chart to identify current roles and career paths. Be sure to consider cross-functional opportunities when looking at career paths.
• Staff composition . Think about the employee's job title or function, salaries, length of employment, level of seniority, employee demographics, performance assessments and turnover rates. If you need seasonal customer service employees, you might include outsourcing in your plan.
• Employees' skills . Compare employees' key skills and experience with those needed, and use those gaps to determine your next steps. If you need midlevel employees with specialized software skills, you might look internally for people who have those skills or could acquire them. Likewise, you could plan to work with recruiters, schools or technical organizations for candidates.
• Career pathways . Work with HR and managers to create development plans for critical employees who have the most needed skills or who have significant potential for senior-level positions. These development plans go beyond performance reviews by outlining the steps an employee needs to reach the next level. This might be through specific job experiences, training or mentoring.
• Employee retention . Examine how well your organization retains employees. Look at turnover rates by position, department and demographic. Is there a pattern to which employees are leaving? If so, delve into possible causes to determine if people, policies or practices are impacting retention, which affects your staffing needs. Are employees receiving development opportunities, promotions and salary increases? What issues have surfaced from employee satisfaction surveys that might impact turnover? If you identify problems, work on a plan to increase employee engagement.

Once you gather all of the information and create a plan that identifies the anticipated job, skill and experience needs and includes details on how you plan to meet those needs, you can follow the necessary steps to implement the plan. Then, evaluate your implemented plan every six to 12 months or more often if your business changes significantly. The plan needs to be flexible to meet changing needs.

Staffing plans need everyone to pitch in

Crafting a truly high-quality staffing plan involves organizational leadership, hiring managers and HR leaders. It's an organization-wide effort not unlike budgeting. So clear communication across functions and departments is key to crafting a plan that accounts for the needs of all and works for everyone.

Hiring and keeping your best requires greater people intelligence. Get our guide: How to Design a People-Centered Workplace

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Management Plan in a Business Plan

What is a management plan in a business plan? As a small business owner, you know you face an uphill battle. 4 min read updated on February 01, 2023

What is a management plan in a business plan? As a small business owner, you know you face an uphill battle. About 80 percent of new ventures fail within their first five years. Why? Most of the time it's due to flawed operating procedures or a less-than-optimal management structure.

What Is a Management Plan?

The management plan is all about employees and operations.

• Employees are one of the most important parts of any new venture. Good employees can make your life much easier, while bad employees can distract you and be a detriment to your success.
• Operational structure can be the difference between a successful venture and a failure.

When you're putting together a business plan , the operations and management section will describe how your business will operate on a day-to-day basis. It will cover all the essentials:

• Your company's physical location
• Other important processes

This section is an easy way to answer basic questions about your business without overwhelming readers.

Carefully crafting a professional and thorough business plan is an important step in forming a new venture. It will keep you on track and clearly define strategy and goals. However, business plans are only as good as the people behind them.

A venture's biggest asset is the entrepreneur. Investors won't make a move until they know they have complete confidence in an entrepreneur. Does he or she have the right experience? Is he or she willing to put in the work? These are just two of the questions Investors will have to answer before working with a new entrepreneur .

The management section of your business plan is an excellent space to highlight the members of your management team . Tell your readers and potential investors who will be managing your company, where they come from, how they will help your venture, and anything else that will signal your venture's future success. Be sure to cast the best light on your management team. Your investors need to know that this team is capable of anything.

There are usually three parts to a good Management and Staffing portion of a business plan:

• Management team details
• Key supporters and alliances, such as an advisory board
• Staffing and employment requirements

A few things to remember as you work on this section of your business plan:

• Your readers are usually potential investors. They need to know you and your management team are trustworthy and deserving of their investment.
• Investors need to know that you and your team can do the job; they need to get a feel for your attitudes and your abilities.
• Showing your team has a wide variety of skills and experiences will give you an advantage when presenting your business plan.
• It's all about the people. Business plans are great for answering key questions about the new venture, but at the end of the day, investors are looking to partner with hard-working, trustworthy people.

Now let's talk about operations. The operations section of the business plan describes several key characteristics of your business. For example, if your business has a physical, "brick and mortar" location, take time in this portion of the business plan to describe the area around your business. Tell your investors why your location is optimal for your business.

Make a note of your standard operating hours. Answer questions like,

• When will you open every day?
• When will you close?
• Will you be open during holidays?
• If so, which ones?

This is also a great section to list out your daily operation details, the different products or services you will provide, your standard operating procedures, customer service, and so on.

Take time in the Inventory section of your operations plan to list out potential suppliers, vendors, or contractors with whom you have agreements. Your partners, even the third-party ones, reflect upon you, so make sure to sing their praises. Put some thought into an inventory plan. Remember, too much inventory means you're likely wasting valuable resources that could be deployed elsewhere. On the other hand, too little inventory means you could be losing out on potential customers.

Once again, your management team plays a crucial role in your operations plan. Tell your investors exactly who they are, how they are uniquely qualified, and how their responsibilities will be divided with operations.

The management and operations sections of your business plan will demonstrate to your investors that you have the right team and the right strategy to be successful in a competitive industry.

If you need help with a management plan in a business plan, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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How to Create a Staffing Model Fit for Your Business

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Creating the perfect staffing model for your business can feel like trying to solve a Rubik's Cube.

It's complex and frustrating, but satisfying when everything clicks into place.

Whether you’re the brains behind HR or the boss calling the shots, getting your staffing right is key for setting your team up for success.

In this article, you will learn how to map out a staffing blueprint that’s not just a fit, but a perfect match for your unique business needs.

Let's roll up our sleeves and get right into it:

What is a staffing model?

An employee staffing model is a plan that businesses use to figure out how many workers they need and what kind of skills they should have to meet their goals.

There are various staffing models, each with its own approach, depending on your company's needs.

→ For example, the traditional model focuses on having full-time employees who are permanently part of the team. This model is great for businesses that need a stable workforce where employees have a deep understanding of the company.

→ On the other hand, some companies might have a flexible staffing model , which mixes part-time, temporary, or freelance workers with full-time staff. This can be particularly useful for businesses that see big swings in demand, like retail stores during the holiday season or tech startups that grow rapidly.

→ Then there's the project-based model, where teams are built specifically to tackle particular projects. Once the project ends, the team might be disbanded, or members might be moved to new projects. This model works well for industries like construction or consulting, where work can vary greatly from one project to the next.

Each staffing model has its strengths and challenges. Choosing the right one can make a huge difference in how smoothly a company runs and how well it can achieve its objectives. It's all about matching the right type of workers with the right kind of work to keep everything moving forward smoothly.

Different types of staffing models

As we move forward, let's have a closer look at the exact types of staffing models and how they vary:

Traditional (full-time)

This model is about hiring employees who work full-time hours, typically 40 hours a week. They're permanent fixtures in the company.

• Example: A software company hires full-time developers to maintain and improve its products continuously.

Employees under this model can choose their start and end times within agreed limits. It’s great for accommodating personal commitments.

• Example: An accounting firm allows staff to start anytime between 7 AM and 10 AM, as long as they complete their 8-hour shift.

Part-time employees work fewer hours than full-timers, often to balance work with other aspects of life.

• Example: A retail store hires part-time workers to manage cash registers during peak hours.

Here, certain functions are performed by external organizations or freelancers instead of in-house staff.

• Example: A tech startup outsources its customer service operations to a specialized firm.

Temporary/contingent

Companies hire individuals for a set period or specific projects. This model is flexible and can be a good way to handle workload peaks.

• Example: A publishing company hires extra editors temporarily to handle the increased workload during the book release season.

Remote/telecommuting

Employees work from locations outside of the traditional office environment, often from home.

• Example: A digital marketing agency has team members working remotely from different parts of the world.

Shift-based

Work hours are divided into shifts. This model is common in industries that operate around the clock.

• Example: A manufacturing plant operates with three shifts to keep the factory running 24/7.

Skill-based

Staffing is based on specific skills needed at different times, allowing for highly specialized roles.

• Example: A construction company hires skilled electricians or plumbers as needed for various phases of building projects.

A combination of several staffing models to create a flexible and adaptive workforce.

• Example: A consultancy uses a hybrid model with full-time senior consultants, part-time junior staff, and freelancers for specialized tasks.

How to create an effective staffing model

The example schedules you've just seen look rather simple.

However, there's quite a lot of background work that goes into creating something like that.

Worry not though, we're here to walk you through every step of designing a proper staffing model for your business:

Understand your business objectives

Start with the end in mind. What are your organizational goals?

Whether it's growth, stability, or innovation, your staffing model should directly support these objectives. With this alignment, every hire will contribute to the bigger picture.

Expert tip: Use the SMART criteria (Specific, Measurable, Achievable, Relevant, Time-bound) to define and refine your organizational goals. This framework will make your objectives clear and actionable, so it's easier to align your staffing model accordingly.

Analyze workload and demand

Look at the ebb and flow of your business activities.

Are there peak periods? What's the typical workload like?

Understanding these patterns will help you decide the best staffing model to handle these variations without overshooting labor costs.

Expert tip: Implement tools like Microsoft Power BI or Tableau for data visualization. These tools can help you analyze historical data on workload and seasonal trends, so you can predict future staffing needs with greater accuracy.

Define roles and responsibilities

Clarity is key in the perfect staffing model.

Clearly defined roles and responsibilities help avoid overlaps and gaps.

It's like ensuring everyone knows their part in a play so the performance is perfect.

Expert tip: Adopt a role clarification tool like RACI (Responsible, Accountable, Consulted, Informed) matrix. This tool helps define roles in terms of involvement and decision-making across projects.

Assess current staffing levels

Take stock of your current team.

Are there enough hands on deck? Do your employees have the right skills?

This assessment helps you identify gaps and plan your hiring process.

Expert tip: Conduct skills audits using platforms like LinkedIn Learning or Coursera to assess the skills and competencies of your current workforce. This can help identify skill gaps and guide future hiring and training programs.

Forecast future staffing needs

Look ahead.

Based on your growth projections and market trends, estimate your future staffing requirements .

This foresight prevents scrambling for hires at the last minute and helps you craft a strategic approach to scaling up.

Expert tip: Try workforce planning software like Unrubble . Such tools can integrate with your HR systems to help forecast staffing needs based on various scenarios and growth projections.

Consider workforce segmentation

Different roles need different approaches.

For example, a nurse staffing model might prioritize nurse-patient ratios, while a tech company might focus on project-based roles.

Segmenting your workforce allows for tailored strategies that meet specific needs.

Expert tip: Segment your workforce based on criteria like job function, project type, and required expertise using analytics tools within your HR software.

Use workforce planning tools

Take advantage of technology to simplify your staffing process.

These tools can help predict staffing needs, track the effectiveness of your staffing strategy, and manage schedules efficiently.

Expert tip: Consider using advanced scheduling software like Unrubble . These tools have features for dynamic scheduling, labor forecasting, and real-time communication - all essential for successful workforce management.

Balance permanent and contingent staffing

Combine stability with flexibility.

Permanent employees offer continuity, while contingent workers (like freelancers or temps) can be brought in to manage extra demand without the long-term cost commitment.

Expert tip: Leverage platforms like Upwork for finding contingent workers and integrating them into your workforce for short-term projects. This can help maintain flexibility without compromising the quality of work.

Develop recruitment and retention strategies

Prioritize employee retention.

Hiring is costly, so keeping your team happy is key.

This means creating a positive work environment and providing growth opportunities. Also, consider contacting past applicants for new roles - they might be the perfect fit this time around.

Expert tip: Implement an employee feedback tool like Culture Amp or SurveyMonkey to regularly gather and analyze employee satisfaction and retention metrics. Use this data to improve your workplace environment and develop great recruitment strategies.

Monitor and adjust

The only constant is change.

Regularly review your staffing model so it remains aligned with your business needs.

The human resources department should work closely with hiring managers to adjust the approach as necessary.

Expert tip: Set regular review meetings using tools like Trello or Asana to track your staffing model and make adjustments in real-time. These platforms allow you to assign tasks, follow up on adjustments, and maintain continuous improvement in your staffing strategy.

Meet Unrubble - your staffing companion

If you want to save time and other resources, we recommend letting a specialized solution help you with your staffing needs.

Meet Unrubble - your ultimate companion for creating an appropriate staffing model.

Have you ever felt overwhelmed with the endless tables, shifting timelines, and the constant back-and-forth of managing a team?

Say goodbye to those headaches and hello to simplicity with Unrubble!

Why choose Unrubble?

Because it transforms the way you handle employee schedules. With Unrubble, scheduling becomes a breeze, not a chore. Check out features like:

• Mobile Time Clock ,
• sporting face recognition
• and anti-spoofing technology,
• paid time off,
• work-from-home days,
• and business trips effortlessly with our PTO Tracker .

Think of Unrubble as your scheduling wizard. It's equipped with tools for everything from drafting to publishing schedules, all with simple drag-and-drop actions.

And with real-time notifications, communication jams are a thing of the past.

• Time tracking : precision at its finest, because every minute counts.
• Employee Self-Service App : let your team manage their details directly.
• Free mobile app: shift swaps and schedule updates right from your phone.

Join over 199,950 happy users from diverse teams who have streamlined their scheduling processes. Unrubble is not just about filling slots - it’s about creating peace in your team’s daily grind.

Start unrubbling for free today.

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• Business Plans

Writing the Organization and Management Section of Your Business Plan

What is the organization and management section in a business plan.

• What to Put in the Organization and Management Section

Organization

The management team, helpful tips to write this section, frequently asked questions (faqs).

vm / E+ / Getty Images

Every business plan needs an organization and management section. This document will help you convey your vision for how your business will be structured. Here's how to write a good one.

Key Takeaways

• This section of your business plan details your corporate structure.
• It should explain the hierarchy of management, including details about the owners, the board of directors, and any professional partners.
• The point of this section is to clarify who will be in charge of each aspect of your business, as well as how those individuals will help the business succeed.

The organization and management section of your business plan should summarize information about your business structure and team. It usually comes after the market analysis section in a business plan . It's especially important to include this section if you have a partnership or a multi-member limited liability company (LLC). However, if you're starting a home business or are  writing  a business plan for one that's already operating, and you're the only person involved, then you don't need to include this section.

What To Put in the Organization and Management Section

You can separate the two terms to better understand how to write this section of the business plan.

The "organization" in this section refers to how your business is structured and the people involved. "Management" refers to the responsibilities different managers have and what those individuals bring to the company.

In the opening of the section, you want to give a summary of your management team, including size, composition, and a bit about each member's experience.

For example, you might write something like "Our management team of five has more than 20 years of experience in the industry."

The organization section sets up the hierarchy of the people involved in your business. It's often set up in a chart form. If you have a partnership or multi-member LLC, this is where you indicate who is president or CEO, the CFO, director of marketing, and any other roles you have in your business. If you're a single-person home business, this becomes easy as you're the only one on the chart.

Technically, this part of the plan is about owner members, but if you plan to outsource work or hire a virtual assistant, you can include them here, as well. For example, you might have a freelance webmaster, marketing assistant, and copywriter. You might even have a virtual assistant whose job it is to work with your other freelancers. These people aren't owners but have significant duties in your business.

Some common types of business structures include sole proprietorships, partnerships, LLCs, and corporations.

Sole Proprietorship

This type of business isn't a separate entity. Instead, business assets and liabilities are entwined with your personal finances. You're the sole person in charge, and you won't be allowed to sell stock or bring in new owners. If you don't register as any other kind of business, you'll automatically be considered a sole proprietorship.

Partnership

Partnerships can be either limited (LP) or limited liability (LLP). LPs have one general partner who takes on the bulk of the liability for the company, while all other partner owners have limited liability (and limited control over the business). LLPs are like an LP without a general partner; all partners have limited liability from debts as well as the actions of other partners.

Limited Liability Company

A limited liability company (LLC) combines elements of partnership and corporate structures. Your personal liability is limited, and profits are passed through to your personal returns.

Corporation

There are many variations of corporate structure that an organization might choose. These include C corps, which allow companies to issue stock shares, pay corporate taxes (rather than passing profits through to personal returns), and offer the highest level of personal protection from business activities. There are also nonprofit corporations, which are similar to C corps, but they don't seek profits and don't pay state or federal income taxes.

This section highlights what you and the others involved in the running of your business bring to the table. This not only includes owners and managers but also your board of directors (if you have one) and support professionals. Start by indicating your business structure, and then list the team members.

Owner/Manager/Members

Provide the following information on each owner/manager/member:

• Percentage of ownership (LLC, corporation, etc.)
• Extent of involvement (active or silent partner)
• Type of ownership (stock options, general partner, etc.)
• Position in the business (CEO, CFO, etc.)
• Duties and responsibilities
• Educational background
• Experience or skills that are relevant to the business and the duties
• Past employment
• Skills will benefit the business
• Awards and recognition
• Compensation (how paid)
• How each person's skills and experience will complement you and each other

Board of Directors

A board of directors is another part of your management team. If you don't have a board of directors, you don't need this information. This section provides much of the same information as in the ownership and management team sub-section. 

• Position (if there are positions)
• Involvement with the company

Even a one-person business could benefit from a small group of other business owners providing feedback, support, and accountability as an advisory board. 

Support Professionals

Especially if you're seeking funding, let potential investors know you're on the ball with a lawyer, accountant, and other professionals that are involved in your business. This is the place to list any freelancers or contractors you're using. Like the other sections, you'll want to include:

• Background information such as education or certificates
• Services provided to your business
• Relationship information (retainer, as-needed, regular, etc.)
• Skills and experience making them ideal for the work you need
• Anything else that makes them stand out as quality professionals (awards, etc.)

Writing a business plan seems like an overwhelming activity, especially if you're starting a small, one-person business. But writing a business plan can be fairly simple.

Like other parts of the business plan, this is a section you'll want to update if you have team member changes, or if you and your team members receive any additional training, awards, or other resume changes that benefit the business.

Because it highlights the skills and experience you and your team offer, it can be a great resource to refer to when seeking publicity and marketing opportunities. You can refer to it when creating your media kit or pitching for publicity.

Why are organization and management important to a business plan?

The point of this section is to clarify who's in charge of what. This document can clarify these roles for yourself, as well as investors and employees.

What should you cover in the organization and management section of a business plan?

The organization and management section should explain the chain of command , roles, and responsibilities. It should also explain a bit about what makes each person particularly well-suited to take charge of their area of the business.

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Staffing Agency Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Staffing Agency Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Staffing Agency Plan Here

You’ve come to the right place to create your staffing agency business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their staffing agencies.

Below are links to each section of your staffing agency business plan template:

Next Section: Executive Summary >

Staffing Agency Business Plan FAQs

What is a staffing agency business plan.

A staffing agency business plan is a plan to start and/or grow your staffing agency business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your staffing agency business plan using our Staffing Agency Business Plan Template here .

What Are the Main Types of Staffing Agency Companies?

There are many types of staffing agency companies. Some staffing agencies will focus on a particular industry, such as clerical jobs. Other staffing agencies focus on executive job placement, while others will offer a wide range of services across all industries. Some even offer human resource functions, such as payroll, benefits administration and risk management.

What Are the Main Sources of Revenue and Expenses for a Staffing Agency Business?

The primary source of revenue for staffing agencies are the fees it charges clients to place them in a job and the revenue it receives from businesses that hire them to find and recruit suitable staff for their business.

The key expenses for a staffing agency business are the costs to market the business, as well as payroll for the support staff. Other expenses will be the rent, utilities, and overhead costs for the physical office space.

How Do You Get Funding for Your Staffing Agency Business Plan?

Staffing agency businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Angel investors and other types of capital-raising such as crowdfunding are other common funding sources. This is true for an employment agency business plan and specialities like a healthcare staffing agency business plan.

What are the Steps To Start a Staffing Agency Business?

Starting a staffing agency business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Staffing Agency Business Plan - The first step in starting a business is to create a detailed staffing agency business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your staffing agency business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your staffing agency business is in compliance with local laws.

3. Register Your Staffing Agency Business - Once you have chosen a legal structure, the next step is to register your staffing agency business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your staffing agency business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Staffing Agency Equipment & Supplies - In order to start your staffing agency business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your staffing agency business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful staffing agency business:

• How to Start a Staffing Agency Business
• How to Open a Staffing Agency Business

Where Can I Get a Staffing Agency Business Plan PDF?

You can download our staffing agency business plan  PDF template here . This is a business plan template you can use in PDF format.

11 min read

The success of any organization relies on its ability to attract, retain and develop top talent.  Talent acquisition  refers to the ongoing strategy and process an organization and its HR department uses to source, attract, evaluate, hire and retain the highly qualified new employees it needs to grow.

A well-crafted talent acquisition strategy has become a critical component for organizations seeking to secure a competitive edge. Beyond simply filling open roles, a comprehensive talent acquisition strategy encompasses a holistic approach to  talent management , from identifying organizational needs to nurturing relationships with potential candidates.

By recognizing the importance of a strategic and proactive talent acquisition approach, companies can position themselves as employers of choice. This approach can foster a culture that not only attracts the right candidates but also cultivates long-term success and sustainability.  

A talent acquisition strategy is a comprehensive plan that an organization develops to optimize its talent acquisition—the identification, attraction and retention of the right talent. It includes a series of interconnected processes and initiatives designed to align the organization’s talent needs with its business objectives. The strategy outlines the methods and processes for sourcing, screening and selecting candidates, while also focusing on employee retention and long-term development.

Talent acquisition strategy involves the use of various recruitment methods, technologies and practices. It enables HR professionals and the organization to build a strong employer brand, create a positive candidate experience and foster an effective, diverse and inclusive workforce. An effective talent acquisition strategy continually adapts to changes in industry trends and candidate preferences. It ensures that the organization’s talent acquisition efforts remain competitive and resilient.

An effective talent acquisition strategy includes elements designed to effectively attract, asses, identify and retain the best talent for the organization’s current and future hiring needs. The creation of a successful strategy should include these steps:

A compelling employer brand can set an organization apart, making it an attractive destination for skilled professionals. Many steps can be taken to build and enhance an employer brand, including:

• Define the employer value proposition (EVP):  Clearly articulate what sets the company apart as an employer—what it stands for and the kind of working environment it offers. Highlight the unique benefits, opportunities and culture.
• Create a compelling careers page:  Build an organized and informative careers page on the company website. Describe the application process. Use engaging content, images and videos to showcase the work environment.
• Collect and share employee success stories: Let employees describe their experiences working at the company, including career growth, work-life balance and company culture.
• Use social media:  Promote the employer brand on social media by sharing company news, employee stories and industry insights. Engage with potential candidates and encourage a sense of community.
• Offer competitive compensation and benefits:  Meet or exceed industry standards for pay and benefits packages and clearly communicate these offerings to potential candidates.
• Foster employee engagement and growth:  Create a supportive work environment that encourages employee engagement, professional development and career advancement.
• Initiate employee advocacy:  Encourage employees to become brand advocates. Provide them with tools to share positive experiences on their personal social media accounts and professional networks.
• Promote diversity and inclusion:  Widen the pool of top candidates by highlighting initiatives that demonstrate the organization’s commitment to creating a diverse and inclusive workplace.
• Provide a positive candidate experience:  Streamline the recruitment process to ensure a seamless and positive experience for all candidates. Communicate with transparency.
• Highlight work-life balance:  Showcase any flexible work arrangements, wellness programs or other initiatives that prioritize the health and happiness of employees.
• Attend industry events:  Participate in conferences, webinars, speaking engagements, award competitions and other events to establish a presence and engage with potential candidates.
• Monitor online reviews:  Respond to reviews, whether positive or negative, to demonstrate a commitment to improving and addressing concerns.
• Measure impact:  Use analytics and metrics to assess the effectiveness of branding efforts. Monitor website traffic, application rates and employee referrals to gauge their success.
• Seek feedback and continuously improve:  A positive candidate experience can contribute to a favorable employer brand. Gather feedback from candidates who go through the hiring process.

Conduct a thorough assessment of current and future talent that the organization requires to achieve its business objectives.

• Conduct an organizational analysis:  Identify key areas where new talent is needed to support the company’s current and projected business goals and growth plans.
• Determine short- and long-term talent needs:  Distinguish between immediate hiring needs and future requirements. Prioritize roles that require immediate attention.
• Develop candidate profiles:  Create personas for ideal candidates and write detailed job descriptions for each role based on the skills and qualifications necessary for success.
• Evaluate internal talent:  Encourage employee retention by identifying suitable internal candidates for open positions and evaluate existing employees to determine if they can be upskilled or reassigned to fulfill upcoming roles.

A diverse range of sourcing channels can effectively connect with a wider pool of potential candidates. Key sourcing channels include:

• Company website:  Maintain an updated careers page on the company website that provides comprehensive information about the organization, job openings and the application process.
• Job boards:  Post openings on popular job boards and career websites such as Indeed, LinkedIn, Glassdoor and Monster to reach active job seekers.
• Recruitment agencies:  Collaborate with reputable recruitment agencies and staffing firms that specialize in the same industry to gain access to their talent pool and sourcing expertise.
• Social media platforms:  Use LinkedIn, Facebook, Twitter, Instagram and TikTok to promote job openings, share company culture and engage with potential candidates.
• Employee referrals:  Encourage current employees to refer potential candidates from their professional networks. Implement an employee referral program to incentivize employees to recommend qualified candidates.
• Networking events:  Attend industry-specific networking events and job fairs to establish connections with potential candidates and build relationships within the industry.
• Professional associations:  Engage with relevant professional associations and groups to reach candidates who are actively involved in the same field.
• Employee alumni networks:  Reconnect with former employees who may be interested in returning or referring other qualified candidates.
• Online forums and communities:  Participate in online communities and industry-specific groups where professionals discuss relevant topics and raise awareness about job opportunities.
• Talent marketplaces:  Explore online talent marketplaces and freelance platforms to connect with freelancers and independent contractors for short-term vacancies or special project roles.
• Direct outreach:  Reach out to potential candidates through emails, messages on professional networking platforms or phone calls to introduce the company and discuss relevant opportunities. 

Implementing a structured and comprehensive screening process can help assess candidates’ skill sets, qualifications and cultural fit. To develop an effective screening process:

• Review resumes and cover letters:  Assess their qualifications, relevant experience and alignment with the job requirements. Look for key achievements, skills and career progression that match the position.
• Conduct phone screenings: Assess candidates’ communication skills, professional demeanor and overall fit for the role.
• Administer skills assessments: Administer tests or assignments to evaluate candidates’ technical skills, problem-solving abilities and job-related competencies.
• Conduct multiple or panel interviews:  Gather diverse perspectives on each candidate’s fit for the role by arranging separate or panel interviews with key stakeholders.
• Include behavioral interviews:  Use behavioral interviews to understand candidates past behavior and assess how they might respond to specific situations in the workplace.
• Assess cultural fit : During the interview process, evaluate candidates’ alignment with the company’s culture and values. Ask questions that assess their work style and preferred work environment.
• Check references:  Reach out to the provided references to verify the accuracy of candidates’ work history, skills and achievements.
• Conduct background checks:  Include employment verification, education verification and criminal record checks. This validation of candidates’ qualifications ensures they meet the necessary requirements.
• Assess soft skills:  Evaluate candidates’ soft skills, such as communication, teamwork, adaptability and leadership potential, during the interview process.

Here are some effective ways to improve the candidate experience:

• Provide clear communication:  Ensure that candidates are informed about the next steps and the expected timeline throughout the hiring process.
• Streamline the application process:  Minimize the number of steps required and optimize the application platform for user-friendliness.
• Create transparent job descriptions:  Include the role’s responsibilities, qualifications and expectations and provide insights into the company culture and values.
• Conduct engaging and respectful interviews:  Ensure that interviews are well-organized, respectful and engaging, with interviewers who are well-prepared, ask relevant questions.
• Personalize candidate engagement:  Tailor candidate interactions to create a personalized and meaningful experience.
• Offer constructive feedback:  Provide specific insights into their strengths and areas for development to help them understand how they can improve and grow professionally.
• Ensure consistent employer branding:  Ensure that the candidate experience aligns with the employer brand. Maintain consistency in messaging, communication style and overall candidate engagement.
• Provide responsive and accessible support:  Make it easy for candidates to contact the hiring team or recruitment professionals for guidance and support.
• Follow up:  Express appreciation and provide closure on their application status, whether they are selected or not. Encourage them to stay connected with the company for future opportunities.
• Gather feedback:  Implement satisfaction surveys to gather feedback on the overall hiring process. Use this feedback to identify areas for improvement in the candidate experience.

By leveraging data-driven insights, organizations can make informed decisions, optimize the recruitment processes and improve the overall quality of hires. Here are several ways in which data and analytics can be used in a talent acquisition strategy:

• Forecast talent demand:  Analyze historical data and job market trends to forecast future talent demands. This helps anticipate hiring needs and proactively source and attract the best candidates in advance.
• Sourcing channel performance analysis:  Track and study the performance of different sourcing channels such as job boards, social media and recruitment agencies.
• Candidate journey assessment:  Identify potential bottlenecks or areas for improvement at each stage of the recruitment process. This helps create a smoother and more efficient experience.
• Application and hiring metrics:  Use metrics such as application completion rates, time-to-hire, cost-per-hire and quality of hire to measure the effectiveness of the recruitment strategy.
• Candidate assessment and selection:  Implement data-driven assessment tools and techniques to objectively evaluate candidates based on skills, competencies and cultural fit.
• Employer brand perception analysis:  Monitor and analyze online reviews, social media mentions and candidate feedback to gauge the perception of the employer brand.
• Diversity and inclusion:  Analyze data on candidate demographics, hiring outcomes and employee retention to identify opportunities for fostering a more inclusive environment.
• Return on investment (ROI) analysis:  Evaluate the ROI of different recruitment initiatives and strategies to assess their effectiveness in attracting and retaining top talent. Analyze the cost and benefits associated with each.
• Predictive analytics for talent management:  Use predictive analytics to identify potential high-performing candidates, forecast employee retention rates and  develop talent management strategies .

Technology can play a pivotal role in enhancing various aspects of a talent acquisition strategy. It can enable organizations to streamline recruitment processes, improve candidate experience and make data-driven hiring decisions. Here are several ways technology can be leveraged as part of a comprehensive talent acquisition strategy:

• Applicant tracking systems (ATS):  Implementing an ATS can help automate and streamline the recruitment process, from job postings to managing candidate applications. ATS platforms enable recruiters to track candidate progress, schedule interviews and communicate with applicants efficiently, creating a more organized and efficient hiring process.
• AI-powered sourcing and screening:  AI can help analyze resumes, assess candidate fit and even conduct initial screenings, allowing recruiters to identify top talent more effectively.
• Video interviews:  Save time and resources and get a more comprehensive understanding of candidates’ communication skills and demeanor by using video interviewing platforms.
• Employee referral software:  Enable employees to refer potential candidates and track the status of their referrals. This technology can streamline the employee referral process.
• Virtual events and career fairs:  Host virtual career fairs and events using online platforms to connect with a broader pool of candidates and showcase the employer brand.
• Data analytics and reporting tools:  Data-driven insights can help recruiters make informed decisions, identify bottlenecks in the recruitment process and optimize hiring strategies.
• Mobile recruitment applications:  Develop mobile-friendly recruitment applications and platforms that allow candidates to conveniently apply for jobs, submit resumes and engage with recruiters.
• Candidate relationship management (CRM) systems:  CRM systems help recruiters maintain a database of potential candidates, nurture relationships over time and provide a personalized and engaging experience for each candidate.

Incorporating diversity and inclusion initiatives into recruitment can yield numerous benefits: improved innovation, enhanced employee morale and a positive employer brand. Here are more reasons why diversity and inclusion are essential to a talent acquisition strategy:

• Enhanced innovation and creativity:  A diverse workforce brings together individuals with unique perspectives, experiences and backgrounds. This diversity fosters innovation, creativity and new ideas.
• Improved employee performance:  Inclusive workplaces that value diversity often experience improved employee morale, engagement and overall job satisfaction.
• Broader talent pool:  A commitment to diversity and inclusion in the talent acquisition process expands the candidate pool, allowing organizations to attract and retain an array of top talent.
• Better understanding of customer needs:  Employees from different backgrounds can enable organizations to develop products and services that better meet the demands of a diverse market.
• Positive employer branding:  Companies that prioritize diversity and inclusion are often viewed as progressive, inclusive and socially responsible, making them more attractive to job seekers.
• Legal and ethical compliance:  Emphasizing diversity and inclusion ensures that organizations comply with antidiscrimination laws and promote fairness and equity in the workplace.
• Adaptability to changing demographics:  Diverse and inclusive work environments are better equipped to navigate cultural differences, adapt to changing demographics and effectively engage with a diverse customer base.

Integrating diversity and inclusion into the talent acquisition strategy requires a comprehensive approach. It involves creating inclusive job descriptions, implementing bias-free recruitment practices, providing diversity training and fostering an inclusive workplace culture. By prioritizing diversity and inclusion, organizations build a more dynamic, innovative and resilient workforce reflective of the diverse society in which they operate.

Building a talent pipeline involves proactively identifying and nurturing relationships with potential candidates even if there are no immediate job openings. Here’s why building a talent pipeline is an important part of a talent acquisition strategy:

• Proactive recruitment:  By cultivating relationships with potential candidates in advance, companies can reduce the time and resources required to fill future job openings when they arise.
• Shortened time-to-hire:  With a prequalified pool of candidates readily available, organizations can quickly engage and evaluate, leading to faster decision-making and onboarding processes.
• Strategic succession planning:  A well-developed talent pipeline enables organizations to identify and groom internal talent for future leadership roles and key positions.
• Reduced recruitment costs:  By continuously engaging with potential candidates over time, organizations can reduce their reliance on external recruiters, job boards and other sourcing channels.
• Enhanced candidate quality:  Nurturing relationships with candidates over time allows organizations to gain a deeper understanding of their skills, experiences and cultural fit.
• Improved employer branding:  Maintaining a talent pipeline demonstrates an organization’s commitment to  talent development  and recruitment, enhancing the employer brand.
• Increased agility and flexibility:  Having access to a pool of qualified candidates enables organizations to adapt swiftly to emerging opportunities and challenges.
• Long-term relationship building:  Regular engagement with these candidates creates a positive candidate experience, even if they are not immediately selected for a role.

Regular evaluation allows organizations to identify areas for improvement, make necessary adjustments and align the talent acquisition strategy with the changing needs of the business. Here are several ways that an organization can assess its talent acquisition strategy:

• Key performance indicators (KPIs):  Establish and monitor specific KPIs related to the talent acquisition process such as time-to-fill, cost-per-hire, quality of hire and candidate satisfaction. Regularly tracking these metrics provides insights into the efficiency and effectiveness of the recruitment process and helps identify areas for improvement.
• Candidate feedback and surveys:  Gather feedback from candidates who have gone through the recruitment process to understand their experience, perception of the brand and overall satisfaction, as well as to identify opportunities for enhancing the candidate experience.
• Data analysis and reporting: Assess the performance of different sourcing channels, the quality of candidates sourced and the success rates of various recruitment initiatives.
• Continuous process improvement:  Solicit feedback from recruiters, hiring managers and other stakeholders involved in the talent acquisition process to identify bottlenecks, streamline workflows and implement best practices.
• Talent market analysis:  Conduct regular analyses of the talent market to understand emerging skill requirements, industry trends, shifts in the labor market and adjust the talent acquisition strategy accordingly.
• Internal stakeholder engagement:  Engage with internal stakeholders, including senior leadership, human resource management and hiring managers, to gather insights into the effectiveness of the talent acquisition strategy.

While attracting top talent is essential, retaining and developing existing employees is equally crucial for the long-term success and sustainability of an organization. Investing in employee development and creating growth opportunities within the organization can increase employee satisfaction and reduce turnover rates. This saves the organization time and resources associated with recruiting and training new hires.

Enhanced employee engagement, employee experience, succession planning and the cultivation of a learning culture provides several benefits, including: clear career paths for employees help avoid leadership gaps, and contribute to the organization’s overall growth and competitiveness. All of this attracts job seekers drawn to companies that prioritize employee growth, learning and career advancement.

Still, the cornerstone of organizational success remains a forward-thinking talent acquisition strategy—driving growth, fostering resilience and positioning companies for sustained excellence in the years to come.

As a leading talent acquisition and skills development consultancy, IBM Consulting® works closely with clients to tailor solutions specific to their recruiting and skilling needs. Whether you are looking to address high turnover, enhance the recruiting technology stack, improve work force productivity, address skills shortages, or create an effective learning experience for a diverse workforce, IBM can provide customized strategies and tools across consulting, technology and managed services.

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Understand How to Use a Business Plan to Attract Talent and Investment

By Drew Moffitt • May 12, 2024

Understanding the purpose of a business plan is paramount for any entrepreneur or business owner. It lays the groundwork for successful operations and growth by defining goals, charting strategies, and preparing for financial needs. This article shows how a business plan can be your blueprint for success—structuring your vision, aligning your team, and communicating your value proposition to stakeholders and investors.

Key takeaways

• A business plan is a critical strategic document that outlines long-term goals, provides direction, and is linked to faster growth in small businesses; it is vital for companies of all sizes to navigate their industry successfully.
• Effective market analysis including industry, target audience, and competitor evaluations, is crucial in a business plan to guide marketing and sales strategies, adapt to customer preferences, and gain a competitive advantage.
• Financial planning within a business plan involves detailed forecasts and assessments of funding needs, which are essential for informed decision-making, attracting investment, and guiding startups through their initial financial challenges.

The essence of a business plan

A business plan is more than a formality; it’s the lifeblood of strategic vision and long-term success. It’s a strategic guide that paints a clear picture of your company’s future, outlining the vision, goals, and strategies that are the heartbeat of your entrepreneurial dreams. 

Crafting this plan is not just an exercise; it’s a foundational step in the business planning process that can significantly increase the likelihood of your business’s success. It sets critical long-term goals and paves the way forward. In essence, a well-crafted business plan embodies your business concept.

Owners of small businesses, especially existing businesses, who embrace comprehensive business planning experience a remarkable 30% faster growth, a testament to the tangible benefits of meticulous strategizing and the guidance of a business consultant.

Mapping out your business journey

Consider a business plan as your company’s roadmap, a detailed chart that guides your every move and provides a refuge in times of uncertainty. It’s the tool that compels you to think through your business idea meticulously before committing significant investments, ensuring that every step you take is calculated.

Whether you’re a vibrant startup seeking funds, a well-established corporation, or a large conglomerate adapting to market changes, a good business plan is your ally in navigating the business waters. For established companies, business plans help maintain a sharp focus on both immediate tasks and distant horizons, ensuring that every member of the team knows the direction and the destination. Recognizing the importance of this tool, many entrepreneurs often find themselves thinking, “I need a business plan.”

Startups, especially the growing number working remotely , need strongly aligned team and leadership planning to ensure harmony when it comes to scripting the business plan.

Clarifying vision and strategy

Your business plan’s executive summary is the beacon that shines light on your company’s mission or vision statement, value proposition, and long-term goals, ensuring everyone from the executive team to the stakeholders is aligned and focused on core objectives. It’s a strategic document that directs long-term decisions, covering a span of three to five years, offering a bird’s-eye view of the entire business and laying out clear goals essential to avoid wasting time and resources.

The ‘Summary and Objectives’ section of your business plan acts as a clarion call, providing direction and inspiring action towards achieving those milestones. For those working remotely , it can highlight the value of the remote proposition, and their efficiency compared to traditional businesses. 

The power of market analysis

Embarking on the business journey without a thorough market analysis is like sailing without a compass. Collaboration apps like Kumospace enable you to gather data, discuss market changes and create your plans. 

The analysis is the cornerstone of your business plan, laying the foundation for carving out a niche and informing all subsequent marketing and sales strategies. It’s a trifecta of industry, target market, and competitive analysis, offering a panoramic view of the business terrain.

By recognizing trends and the market’s trajectory, your business becomes equipped for:

• Predictive planning
• Strategic agility
• Adapting strategies as customer preferences evolve
• Identifying competitive advantages

This allows you to stay ahead of the curve and make informed decision-making processes for your business.

Identifying your target audience

A target market analysis is your lighthouse, confirming the existence of a viable customer base for your product or service. It’s about understanding if potential customers will purchase at a price that fuels your business’s prosperity. By identifying who your customers truly are, you gain insights into their preferences, behaviors, and demographics, ensuring that every marketing dollar spent is a targeted arrow aimed at hearts ready to embrace your offerings.

Evaluating competitors and industry dynamics

Competitive analysis is the reconnaissance mission that informs you where your business stands in the grand scheme of the industry. It involves gathering intelligence on competitors’ sizes, market shares, and financial strengths, and crafting a map that reveals your competitive landscape. By understanding the dynamics of your industry, you can anticipate challenges and tailor your business plan to circumvent potential threats, ensuring a journey that’s as smooth as possible.

Financial planning and projections

Financial planning is the rudder that steers your business toward fiscal prudence and stability. It encompasses the contemplation of:

• Funding costs
• Operating expenses
• Projected income
• Crafting a financial summary that lays bare your business’s economic reality

By dissecting the core financial statements - the Balance Sheet, Income Statement, and Cash Flow Statement - you gain a comprehensive understanding of your business’s financial health, which is indispensable for informed decision-making.

Estimating costs and revenue streams

Technology today offers sophisticated tools that help visualize and forecast expenses over time, sharpening the precision of your financial predictions. Automated procurement tools are the allies that aid you in identifying cost-saving opportunities, contributing to more accurate future cost projections.

For startups, financial projections are a beacon, guiding them through the rocky shoals of capital needs and focusing less on other elements like marketing or company culture at the outset. Resource planning is the linchpin in your business plan for budgeting purposes, ensuring that your financial resources are managed efficiently, and teams operate within parameters to meet or exceed goals.

Determining funding needs

When it comes to sourcing capital, your business plan is the golden ticket, revealing to investors and lenders the treasure map of how their capital will be deployed to ensure your business thrives. 

Banks and venture capital firms often regard a business plan as a litmus test, gauging the potential of their investments and lending opportunities. A formal business plan reflects serious commitment, and it is your declaration of dedication, not just to potential investors but to yourself as the architect of your business’s destiny.

For the new venture, raising capital provides a crystal-clear direction, helps cast a net to attract investors, and is the drumbeat that maintains business momentum. To calculate the necessary funding, determining the exact amount needed and how it will be allocated is crucial for effective capital utilization.

Crafting a winning marketing strategy

A winning marketing strategy is the wind in your sails, aligning your marketing activities with the overarching business objectives and ensuring a smooth journey toward your destination. It’s about fine-tuning the actionable steps of your marketing tactics, which must be crystal clear in your marketing plan to avoid drifting aimlessly.

A well-articulated marketing strategy enhances your business’s understanding of its customers and polishes the lens through which you communicate your value proposition. Organized marketing teams, armed with clear marketing strategies, are the explorers who are most likely to find success in their campaigns.

Positioning Your Brand

Brand positioning is the flag you plant that tells the world who you are and what you stand for. It’s an essential part of your business plan that can significantly impact customer perception and loyalty. You achieve it by crafting clear value propositions and maintaining consistent brand messaging that resonates with your audience.

By understanding the demographics, income ranges, education, occupation, location, lifestyle, and purchasing motivations of your customers, you can hone your brand positioning strategies to create a lasting impression.

Selecting the right marketing tactics

Selecting the right marketing tactics requires a deep dive into your target audience's psyche and discerning the channels they frequent. Your marketing strategy, which includes choosing the appropriate tactics, should reflect your brand’s position, singing in harmony with your target audience’s needs while aligning with your company’s goals and budget.

Building a strong team

A strong team is the crew that propels your ship forward, and building such a team is pivotal for any successful business. A business plan infused with passion and a clear vision can attract high-quality employees and inspire management and staff long after the hiring process is complete. It serves as a strategic roadmap for staffing needs, ensuring there is a clear plan for when to recruit and train new team members to avoid personnel shortages and guarantee smooth operations during expansion periods.

Attracting top talent

A well-developed business plan acts as a beacon to potential top talent, showcasing the company’s anticipated future and overarching goals, which are critical in attracting individuals looking for vision and growth. Top talent is drawn to companies with a compelling vision of success, effectively communicated through a detailed and strategic business plan.

The CEO’s commitment to the business plan and ability to articulate its realization lend reassurance to skilled individuals, influencing their decision to join a company that aligns with their aspirations and professional goals.

Aligning team goals and objectives

By sharing the business plan with team members, you ensure that everyone is rowing in the same direction towards the same objectives, fostering unity and purpose within the team. A business plan serves as a compass, clearly outlining the company’s objectives and enabling each team member to navigate their role toward a shared destination.

Engaging and empowering employees is crucial to achieving the strategic changes and objectives set forth in the business plan.

Adapting to change and growth

Change is the sea upon which businesses sail, and adapting to it is essential for maintaining a competitive edge and supporting business growth. Your business plan should evolve to reflect accomplished goals or shifts in company direction, ensuring the capability to respond to market shifts and seize new business opportunities. You can ensure your company remains agile and competitive by staying open to new business ideas.

A strategic plan that contemplates possible market scenarios and integrates technological advancements empowers businesses to adapt swiftly, preserving their competitive edge.

Embracing market shifts and opportunities

Embracing market shifts and opportunities is about cultivating a culture that views change as a chance to thrive, enhancing adaptability and resilience within the organization. Promoting agility and flexibility in the organizational structure allows for a quicker response to market changes, ensuring that your business is not left behind in the wake of industry evolution.

Regularly revising the business plan keeps a company in step with customer demand and market dynamics, fostering a readiness to pivot and provide more details when needed, especially in a lean startup environment.

Planning for expansion and scaling up

When charting a course for expansion and scaling up, it’s essential to tailor your business plan to address new challenges and opportunities that arise, with updated sales forecasts and financial projections guiding the allocation of resources and growth strategy.

For example, a business plan for acquisition should include cost estimations, integration schedules, and management requirements to ensure seamless growth and addition to the current operations.

As our journey through the anatomy of a business plan concludes, it’s clear that this document is much more than a set of written pages. It manifests your vision, a treasure map to untold success, and a strategic companion in the ever-evolving business landscape. From clarifying your entrepreneurial vision to outlining comprehensive market analyses, ensuring financial stability, crafting a winning marketing strategy, and building a formidable team to adapting to growth and change, the business plan stands as your navigator.

Let this be the wind that fills your sails, pushing you to set forth on your business voyage with a well-crafted business plan in hand. May it guide you to new horizons and inspire the confidence to pursue the success that awaits. Happy sailing!

Frequently Asked Questions

Why is a business plan important for new businesses  .

A business plan is important for new businesses as it provides a strategic guide for the company's vision, goals, and strategies, and helps attract investors and raise capital. It serves as a roadmap for success.

How does a business plan help in market analysis?  

A business plan helps in market analysis by identifying profitable niches, informing marketing strategies, and providing insights into industry trends and competitive advantages.

What role does financial planning play in a business plan?  

Financial planning in a business plan is essential for estimating costs, projecting income, and ensuring financial stability by managing resources effectively.

How can a business plan attract top talent?  

By presenting a clear and compelling vision of the company's future and indicating a commitment to growth and success, a business plan can attract top talent who are seeking meaningful opportunities. This is a key factor for attracting skilled individuals. Using innovative tools like Kumospace for collaboration can also help a startup stand out. 

In what ways can a business plan be adapted for growth?  

To adapt a business plan for growth, it's important to customize it to address new challenges and opportunities, update sales forecasts, and lay out financial projections to guide expansion effectively.

Transform the way your team works from anywhere.

A virtual office in Kumospace lets teams thrive together by doing their best work no matter where they are geographically.

Drew leads marketing at Kumospace. Prior to joining Kumospace, he spent his career founding and operating businesses. His work has been featured in over 50 publications. Outside of work, Drew is an avid skier and sailor. A wholehearted extrovert, he organizes VentureSails, a series of networking events for founders and tech investors.

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Sample Staffing Agency Business Plan

Writing a business plan is a crucial step in starting a staffing agency. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring staffing agency owners, having access to a sample staffing agency business plan can be especially helpful in providing direction and gaining insight into how to draft their own staffing agency business plan.

Download our Ultimate Staffing Agency Business Plan Template

Having a thorough business plan in place is critical for any successful staffing agency venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A staffing agency business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The staffing agency business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your staffing agency as Growthink’s Ultimate Staffing Agency Business Plan Template , but it can help you write a staffing agency business plan of your own.

Staffing Agency Business Plan Example – HireHorizon Staffing

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to HireHorizon Staffing, a beacon of staffing solutions located in the bustling heart of Corpus Christi, TX. Our agency, the first of its kind in the region, is dedicated to bridging the gap between talented job seekers and businesses seeking skilled personnel. With a comprehensive suite of services including Recruitment and Placement, Temporary and Contract Staffing, Direct Placement, and Consulting, we cater to a wide array of employment needs. Our mission is to ensure a perfect match that benefits both employers and employees, thereby contributing to the success of our local community and its economy. As a newly established entity, we are committed to leveraging our deep understanding of the local job market and fostering strong community relationships, setting us apart as a trusted staffing partner in Corpus Christi.

Our foundation for success at HireHorizon Staffing is built on the extensive experience and insights brought by our founder, who has a proven track record in the staffing industry. This expertise, combined with our innovative approach to candidate identification and placement, positions us as the premier choice for quality staffing solutions in Corpus Christi, TX. Since our inception on January 3, 2024, we have achieved key milestones including the development of our brand identity and securing a prime location for our operations. These accomplishments are just the beginning of our journey to make a significant impact on the local job market, demonstrating our potential for growth and success in the staffing industry.

The Staffing Agency industry in the United States, valued at $152.5 billion in 2020, is on a steady growth trajectory, with projections suggesting it will reach $178.3 billion by 2025. This growth is fueled by the increasing demand for flexible and specialized staffing solutions across various sectors. HireHorizon Staffing, by entering this lucrative market in Corpus Christi, TX, is poised to capitalize on these expanding opportunities. The rise of remote work and the gig economy present additional avenues for us to innovate and provide tailored staffing solutions that meet the evolving needs of businesses. Our strategic positioning and dedication to excellence place us well within this dynamic and growing market, ready to serve the diverse staffing needs of the Corpus Christi community.

At HireHorizon Staffing, our target demographic encompasses a wide range of local residents in Corpus Christi, TX, including recent graduates and experienced professionals seeking career advancement or transition. We understand the diverse needs of this demographic across various industries and job levels and are committed to offering personalized job placement and career development services. Additionally, we aim to serve the staffing needs of small to medium-sized businesses within the area, addressing their challenges in attracting and retaining top talent. Our ability to cater to the seasonal employment demands, particularly in the tourism and hospitality sectors, further strengthens our role in enhancing the local employment ecosystem and contributing to regional economic growth.

HireHorizon Staffing stands out in the Corpus Christi staffing industry landscape by offering unparalleled client assistance in identifying and hiring the most suitable candidates. Our competitors, including Unique Employment Services, Absolute Staffing, and Remedy Intelligent Staffing, offer a range of staffing solutions but often lack our comprehensive understanding of the local job market and our innovative use of recruitment technology. Our competitive edge is further sharpened by our commitment to personalized service, ensuring that we not only meet but exceed the staffing needs of our clients by providing them with a diverse pool of talented candidates. This strategy, combined with our deep industry expertise, secures our position as the top staffing agency choice for businesses in Corpus Christi.

HireHorizon Staffing is committed to providing a broad spectrum of staffing services, from temporary assignments to direct placements and consulting, designed to meet the varied needs of businesses in Corpus Christi. Our transparent pricing model, which ranges based on service complexity and candidate expertise, ensures that businesses can efficiently manage their staffing requirements. To promote our services, we are implementing a robust online marketing strategy, optimizing our website for search engines and engaging in targeted social media advertising. Additionally, we will leverage traditional marketing avenues, including local networking events and job fairs, to build strong community relationships. Our comprehensive promotional efforts, supported by a strategic referral program, aim to solidify our presence in the local market and establish long-term client relationships.

To deliver on our promise of exceptional staffing solutions, HireHorizon Staffing will engage in key operational activities such as client consultations, candidate sourcing, screening, interviewing, and skills assessment to ensure a perfect match between businesses and job seekers. We will also focus on compliance, record-keeping, and continuous market analysis to adapt to the evolving needs of the Corpus Christi job market. Our operational milestones include launching our agency, securing necessary licenses and insurance, building a quality talent pool, signing our first client contracts, and reaching operational efficiency through the adoption of advanced software tools. These steps are critical in establishing HireHorizon Staffing as a leading staffing agency in Corpus Christi.

Leading the charge at HireHorizon Staffing is Isaac Jordan, our CEO, whose extensive experience and visionary leadership in the staffing industry set the foundation for our success. Isaac’s previous accomplishments in running a successful staffing agency have imbued him with invaluable insights into the staffing and recruitment process. His strategic foresight and commitment to innovation are instrumental in guiding HireHorizon towards becoming a key player in the competitive staffing landscape of Corpus Christi.

Welcome to HireHorizon Staffing, a newly established Staffing Agency dedicated to serving customers in Corpus Christi, TX. As a local staffing agency, we pride ourselves on being the first of our kind in the area to offer high-quality staffing solutions. Our mission is to bridge the gap between talented individuals seeking employment and businesses in need of skilled personnel, ensuring a perfect match that benefits both parties.

At HireHorizon Staffing, our range of products and services are designed to meet the diverse needs of our clients. We specialize in Recruitment and Placement Services, Temporary Staffing, Contract Staffing, Direct Placement Services, and Consulting Services. Our comprehensive offerings enable us to cater to various employment requirements, whether our clients are looking for short-term solutions or permanent hires. By leveraging our expertise and resources, we ensure that each placement is a step towards success for both the employer and the employee.

Located in the heart of Corpus Christi, TX, HireHorizon Staffing is strategically positioned to serve the local community and its businesses. Our deep understanding of the local job market and our commitment to fostering strong relationships within the community set us apart as a trusted partner for all staffing needs.

HireHorizon Staffing is uniquely qualified to succeed for several reasons. Our founder brings valuable experience from previously running a successful staffing agency, equipping us with the knowledge and insights necessary to excel in this industry. Additionally, our approach to assisting clients in identifying and hiring suitable candidates surpasses the competition, making us the go-to choice for quality staffing solutions.

Since our founding on January 3, 2024, HireHorizon Staffing has achieved significant milestones as a Limited Liability Company. Our accomplishments to date include designing our logo, developing our company name, and securing a prime location for our operations. These achievements mark the beginning of our journey, and we are excited about the impact we will make in the Corpus Christi job market.

The Staffing Agency industry in the United States is a significant and growing market. With an estimated value of $152.5 billion in 2020, the industry has shown steady growth over the past few years. The demand for flexible and temporary staffing solutions has driven the expansion of the market, making it a lucrative opportunity for new players like HireHorizon Staffing.

Experts predict that the Staffing Agency industry in the United States will continue to grow in the coming years. By 2025, the market is expected to reach a value of $178.3 billion, driven by the increasing need for skilled and specialized workers across various industries. This projected growth presents a promising outlook for HireHorizon Staffing as it establishes its presence in Corpus Christi, TX.

Recent trends in the Staffing Agency industry, such as the rise of remote work and the gig economy, have created new opportunities for staffing agencies to thrive. HireHorizon Staffing can leverage these trends to attract both clients and candidates, offering tailored staffing solutions that cater to the evolving needs of businesses in Corpus Christi. By staying ahead of industry trends and providing exceptional service, HireHorizon Staffing is well-positioned to succeed in this dynamic and growing market.

Below is a description of our target customers and their core needs.

Target Customers

HireHorizon Staffing will target a broad spectrum of local residents in Corpus Christi, TX, ranging from recent graduates seeking their first professional roles to experienced individuals aiming for career advancement or transition. This demographic is diverse, including individuals across various industries and job levels, from entry-level positions to executive roles. The agency will tailor its services to meet the specific needs of this local workforce, ensuring a personalized approach to job placement and career development.

In addition to local residents, HireHorizon Staffing will also focus on serving the small to medium-sized businesses within the Corpus Christi area. These businesses often face challenges in attracting and retaining top talent due to limited resources compared to larger corporations. By providing customized staffing solutions, HireHorizon will facilitate the connection between these businesses and qualified candidates, enhancing the local employment ecosystem and contributing to the region’s economic growth.

Furthermore, HireHorizon Staffing will extend its services to cater to the seasonal employment needs that are characteristic of the Corpus Christi region, particularly in the tourism and hospitality sectors. This approach will not only provide job seekers with flexible employment opportunities but also support local businesses in managing workforce fluctuations effectively. By addressing the unique staffing requirements of the seasonal industries, HireHorizon will play a pivotal role in sustaining the vibrancy and resilience of the local economy.

Customer Needs

HireHorizon Staffing meets the crucial need for high-quality recruitment and placement services for residents in the local area. By understanding the specific skills and qualifications that employers seek, they can expertly match candidates with positions that fit their capabilities and career goals. This approach ensures that both employers and job seekers find the most suitable and beneficial opportunities.

In addition to matchmaking, HireHorizon Staffing offers comprehensive support services to candidates, including resume crafting and interview preparation. These services equip candidates with the tools and confidence they need to stand out in the competitive job market. The agency’s commitment to personal and professional development helps ensure that individuals not only secure employment but also embark on fulfilling career paths.

HireHorizon Staffing also addresses the needs of businesses by providing them with a pool of pre-vetted candidates, significantly reducing the time and resources spent on the hiring process. This efficiency is particularly beneficial for companies looking to quickly fill positions without compromising on the quality of their hires. The agency’s personalized approach to understanding each business’s unique requirements ensures that the staffing solutions they provide are effective and tailored to meet specific operational needs.

HireHorizon Staffing’s competitors include the following companies:

Unique Employment Services offers a comprehensive range of staffing solutions, including temporary staffing, permanent placement, and executive search. They cater to various industries such as healthcare, IT, and manufacturing. Their price points vary depending on the specific needs of the client, including the level of position being filled and the duration of the employment.

The company operates primarily in the Corpus Christi area, focusing on serving local businesses and job seekers. Unique Employment Services prides itself on a deep understanding of the local job market, which serves as one of its key strengths. However, its geographical concentration in a single area could be seen as a limitation in reaching a wider audience.

Unique Employment Services has built strong relationships with local businesses, which contributes to its solid reputation in the community. Nonetheless, its relatively narrow industry focus may limit its appeal to potential clients in sectors outside its core competencies.

Absolute Staffing specializes in providing temporary, temp-to-hire, and direct hire staffing services across various sectors such as administrative, industrial, and technical fields. They offer competitive pricing models that are designed to meet the diverse needs of their clients, with flexibility in terms and conditions to attract a wide range of businesses.

With multiple locations across Texas, including a presence in Corpus Christi, Absolute Staffing serves a broad geographic area. This allows them to cater to a diverse client base and tap into a larger pool of job seekers. Their extensive network is a key strength, enabling them to quickly fill positions with qualified candidates.

Absolute Staffing’s broad industry coverage allows them to serve a wide range of customer segments, from small businesses to large corporations. However, this wide focus might dilute their expertise in any single sector, potentially affecting their ability to provide specialized staffing solutions.

Remedy Intelligent Staffing offers a wide array of staffing services including temporary staffing, permanent placement, and outsourced solutions. They operate in a variety of industries, including logistics, finance, and customer service. Their pricing is competitive, aiming to offer value to both small and large businesses.

Remedy Intelligent Staffing has a national presence, with locations across the United States, including in Corpus Christi, TX. This national footprint is a significant strength, as it allows them to leverage a wide network of candidates and clients. Additionally, their extensive industry coverage enables them to cater to a diverse range of customer needs.

One of Remedy Intelligent Staffing’s key strengths is its use of technology in streamlining the recruitment process, improving efficiency for both employers and job seekers. However, their wide geographic and industry scope might occasionally result in challenges with maintaining a high level of service quality in all markets.

Competitive Advantages

At HireHorizon Staffing, we stand out in the competitive landscape through our unparalleled assistance to clients in identifying and hiring the most suitable candidates for their job openings. Our approach combines cutting-edge recruitment technology with a deep understanding of the local job market, enabling us to match businesses with the ideal candidates swiftly and efficiently. This capability not only saves our clients valuable time and resources but also significantly enhances their operational productivity by bringing in high-quality talent that fits perfectly with their organizational culture and requirements.

Furthermore, our competitive advantage is fortified by our commitment to personalized service. We recognize that each business has unique staffing needs, and our dedicated team works closely with each client to tailor our services accordingly. This personalized approach ensures that businesses are not just filling vacancies but are making strategic hires that contribute to their long-term success. Additionally, our extensive network of job seekers, ranging from entry-level to executive positions, enables us to offer a diverse pool of candidates to our clients. This diversity in talent availability, combined with our expertise in various industries, positions us as the go-to staffing agency in Corpus Christi for companies looking to drive growth and innovation through strategic hiring.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

HireHorizon Staffing emerges as a distinguished provider in the staffing industry, offering a comprehensive range of services tailored to meet the diverse needs of businesses across various sectors. The agency specializes in connecting qualified candidates with suitable job positions, ensuring both parties achieve their professional objectives. Among their key offerings are recruitment and placement services, temporary staffing, contract staffing, direct placement services, and consulting services. Each of these services is designed to address specific hiring challenges and workforce requirements, facilitating seamless recruitment processes and optimal employment matches.

At the forefront of HireHorizon Staffing’s offerings are their recruitment and placement services. These services are adept at identifying and vetting candidates for a variety of roles, ensuring that only the most suitable individuals are presented to employers. Businesses can expect to invest approximately $500 – $1,000 per placement for these services, depending on the complexity of the job requirements and the level of expertise required for the position.

Temporary staffing is another pivotal service provided by HireHorizon Staffing. This option is perfect for companies experiencing seasonal peaks, project-based work, or those in need of short-term replacements. The pricing model for temporary staffing is typically based on the hourly rates of the employees, with HireHorizon Staffing adding a markup ranging from 20% to 50% on the employee’s pay rate. This flexibility allows businesses to efficiently manage their workforce according to fluctuating demands.

Contract staffing services cater to organizations looking for professionals to undertake project-based or medium-term assignments. This service is particularly beneficial for tasks that require specialized skills for a finite duration. Employers can expect the cost for contract staffing services to be slightly higher than temporary staffing, due to the specialized nature of many contract roles. Pricing often includes a markup on the contractor’s hourly rate, similar to temporary staffing, but adjusted for the contract’s length and the scarcity of the skill set required.

Direct placement services are a cornerstone for HireHorizon Staffing, offering a robust solution for businesses seeking to fill permanent positions. This service encompasses rigorous candidate screening and matching processes, ensuring that hires are perfectly aligned with the company’s long-term goals and culture. The fee for direct placement services is usually calculated as a percentage of the candidate’s first-year salary, typically ranging between 15% and 25%. This provides a cost-effective option for companies aiming to make long-term, impactful hires.

Last but not least, HireHorizon Staffing provides consulting services designed to enhance recruitment strategies and optimize workforce management. These services can range from helping to develop effective hiring processes, to advising on workforce planning and HR technology utilization. Consulting fees are based on the scope and duration of the project, with daily or hourly rates applying. Businesses can anticipate spending $100 – $300 per hour for these expert services, a valuable investment in streamlining their recruitment and staffing operations.

In conclusion, HireHorizon Staffing stands as a versatile and efficient partner for businesses in need of tailored staffing solutions. With a focus on quality and compatibility, their diverse service offerings and transparent pricing models cater to the unique challenges and objectives of each client, paving the way for successful employment outcomes.

Promotions Plan

To attract customers in the competitive staffing industry, HireHorizon Staffing employs a comprehensive promotional strategy that leverages the power of online marketing among other methods. Understanding the importance of a strong digital presence, HireHorizon Staffing will invest in a multi-faceted online marketing approach. This includes optimizing their website for search engines to ensure high visibility when potential clients search for staffing solutions in Corpus Christi, TX. Additionally, they will engage in targeted social media advertising, reaching out to local businesses through platforms such as LinkedIn, Facebook, and Instagram, where they can share success stories, client testimonials, and valuable content related to employment and staffing.

Beyond online marketing, HireHorizon Staffing will also utilize traditional marketing tactics. This includes attending local business networking events to foster relationships with potential clients in person. They will also host workshops and seminars on topics relevant to hiring and workforce management, positioning themselves as thought leaders in the staffing industry in Corpus Christi. To further enhance their visibility, they will participate in local job fairs, connecting directly with job seekers, and demonstrating their commitment to finding the right matches for their clients.

Email marketing campaigns will play a crucial role in their strategy, allowing HireHorizon Staffing to maintain regular contact with both potential and existing clients. These campaigns will highlight their services, share industry insights, and keep their audience informed about the latest job openings and staffing solutions. Through personalized and value-driven email content, they will build trust and establish long-term relationships with their client base.

Referral programs will also be a key component of their promotional efforts. Encouraging satisfied clients to refer others to HireHorizon Staffing with incentives for both the referrer and the referee will help them expand their clientele organically. This word-of-mouth marketing will complement their online efforts, creating a synergistic effect that boosts their overall brand awareness and reputation in Corpus Christi.

By combining these strategies, HireHorizon Staffing expects to not only attract but also retain a solid customer base in Corpus Christi, TX. Their comprehensive approach to promotion, emphasizing both digital and traditional marketing methods, along with a strong focus on community engagement, will ensure that they stand out in the staffing industry.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of HireHorizon Staffing, there are several key day-to-day operational processes that we will perform.

• Client Consultation and Needs Assessment: Engage with new and existing clients to understand their staffing requirements, company culture, and specific job descriptions. This process will enable us to tailor our services to match their unique needs.
• Candidate Sourcing: Actively search for, identify, and approach potential candidates through various channels such as job boards, social media platforms, networking events, and our existing database. This will ensure a wide and diverse talent pool.
• Screening and Interviewing: Conduct initial screening calls and in-depth interviews with candidates to assess their qualifications, experience, and fit for the client’s needs. This will include verifying references and conducting background checks as required.
• Skills Assessment: Administer appropriate tests or assessments to evaluate candidates’ skills and competencies relevant to the job roles they are being considered for. This ensures that clients receive candidates who can perform effectively.
• Client-Candidate Matching: Use the information gathered from clients and candidates to make informed decisions about the best matches. This involves considering both the clients’ needs and the candidates’ career goals and preferences.
• Feedback Collection: After interviews or placements, collect feedback from both clients and candidates to improve our matching process and address any concerns promptly. Continuous improvement will be a focus.
• Follow-up Services: Maintain regular communication with both clients and placed candidates to ensure satisfaction and address any post-placement issues. This will help in building long-term relationships.
• Compliance and Record Keeping: Ensure all operations comply with relevant employment laws and regulations. Maintain accurate and up-to-date records of all client and candidate interactions, contracts, and placements.
• Market Analysis and Business Development: Regularly analyze local job market trends and business opportunities in Corpus Christi, TX, to adapt our strategies and identify new growth areas. This will include competitor analysis and networking to establish HireHorizon Staffing as a key player in the local market.
• Training and Development: Provide ongoing training and development opportunities for our staff to ensure they remain knowledgeable about recruitment best practices and industry trends. This will enhance our service quality and efficiency.

HireHorizon Staffing expects to complete the following milestones in the coming months in order to ensure its success:

• Launch Our Staffing Agency : Successfully open our doors for business, establishing our presence in Corpus Christi, TX, with a fully operational office, an engaging website, and active social media profiles to start engaging with both clients and job seekers.
• Obtain Necessary Licenses and Insurance : Secure all required local, state, and federal licenses to operate a staffing agency, along with appropriate business insurance to mitigate risks related to liability, workers’ compensation, and property damage.
• Build a Quality Talent Pool : Develop a robust database of qualified candidates across the key industries we aim to serve. This involves extensive outreach, networking, and partnerships with local educational institutions and training programs.
• Secure First Client Contracts : Sign contracts with at least three to five local businesses in need of staffing solutions, demonstrating our ability to meet the diverse staffing needs of Corpus Christi employers.
• Achieve Operational Efficiency : Streamline our recruitment, placement, and administrative processes through the implementation of efficient software tools for CRM (Customer Relationship Management), ATS (Applicant Tracking System), and financial management to ensure smooth operations and high-quality service delivery.
• Establish a Strong Brand Presence : Implement a targeted marketing campaign that includes digital marketing, local advertising, and community engagement activities to build HireHorizon Staffing’s brand as a reliable and innovative staffing solution in the local market.
• Reach Break-Even Point : Through effective cost management and increasing revenue streams, reach the financial milestone where monthly revenues equal monthly expenses, ensuring the company’s financial sustainability.
• Get to $15,000/Month in Revenue : Achieve the revenue goal of $15,000 per month through expanding client base, increasing placements, and possibly diversifying services offered (e.g., temporary, temp-to-hire, and direct hire placements).
• Expand Client and Candidate Services : Based on feedback and identified needs, broaden the range of services offered to clients and candidates, such as additional training, professional development opportunities for candidates, and HR consulting services for clients.
• Evaluate Expansion Opportunities : After establishing a strong foothold in Corpus Christi, assess the feasibility of expanding our services to neighboring regions or specific industries that are underserved, leveraging the reputation and operational capabilities we have built.

Our management team has the experience and expertise to successfully execute on our business plan.

Isaac Jordan, CEO

At the helm of HireHorizon Staffing is Isaac Jordan, a seasoned leader with a proven track record in the staffing industry. Isaac’s journey is marked by a history of remarkable success, particularly highlighted by his experience in successfully running a staffing agency prior to his role at HireHorizon. This previous venture not only showcases his ability to lead and grow a staffing business but also his deep understanding of the intricacies involved in the staffing and recruitment process. Isaac’s leadership is pivotal in steering HireHorizon Staffing towards achieving lasting success, leveraging his expertise in strategy, operations, and his innate ability to foresee and adapt to market trends. His visionary approach and dedication are key assets that position HireHorizon Staffing for growth and innovation in the competitive staffing landscape.

To achieve our growth objectives, HireHorizon Staffing requires $205,000 in funding. This investment will be allocated towards capital investments such as location buildout, equipment, and initial operational expenses including staff salaries, marketing, and insurance. These financial resources will enable us to establish a strong foothold in the Corpus Christi staffing market, ensuring our long-term success and sustainability.

Financial Statements

Balance sheet.

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Income Statement

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Cash Flow Statement

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Staffing Agency Business Plan Example PDF

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Employee Onboarding Guide

Onboarding definition & overview.

Last updated: May 15th, 2024

Quality onboarding is crucial for new employees' long-term success and organizational productivity. Learn why a solid employee onboarding process can make a significant impact on employee experience and retention, plus innovative ideas to approaching welcoming new staff.

Onboarding Guide Navigation

> Definition & Overview

What Is Onboarding?

Onboarding is the process of integrating new employees into an organization. It includes the orientation process and opportunities for new hires to learn about the organization's structure, culture, vision, mission and values. Onboarding can span one or two days of activities at some companies; others offer a more extensive series of activities spanning months. 

Onboarding is often confused with orientation. While orientation is necessary for completing paperwork and other routine tasks, onboarding is a comprehensive process involving management and other employees and can last up to 12 months. 

Why Is It Important to Get Onboarding Right?

All new employees are onboarded—but the quality of the onboarding makes a difference. Too often, onboarding consists of handing a new employee a pile of forms and having a supervisor or HR professional walk the employee around the premises, making introductions on an ad hoc basis. When onboarding is done well, however, it lays a foundation for long-term success for the employee and the employer. It can improve productivity, build loyalty and engagement, and help employees become successful early in their careers with the new organization.

A study by  Gallup  showed that while only 12 percent of employees felt their company did a great job with onboarding, those employees were nearly three times as likely to say they have the best possible job. Overall, only 29 percent of new hires felt they were prepared and supported to excel in their new role. This leaves a lot of room for improvement.

Other studies consistently show a positive correlation between engaged employees and a company's profitability, turnover rate, safety record, absenteeism, product quality and customer ratings. An effective onboarding plan offers an ideal opportunity to boost employee engagement by, for example, fostering a supportive relationship between new hires and management, reinforcing the company's commitment to helping employees' professional growth and proving that management recognizes the employees' talent.   For further reading learn  how to optimize the onboarding process  and the importance of good onboarding . 

Relatedly, an  employee value proposition  (EVP) defines the value employees will get from working for a particular organization. It embodies the promises made during recruitment and is lived out every day through company culture. Onboarding gives employees their first look at how an organization's EVP may or may not be realized.

Onboarding Process Summary

While there are many ways to design an onboarding program, some components are integral to the process:

1. Preboarding

Consider inviting new employees to tour the facility, sending informational material, providing care packages, and assigning a buddy to help them integrate before their official start date.

2. Orientation

Introduce employees to the organization's structure, vision, mission, and values; review employee handbook and major policies; complete paperwork; cover administrative procedures; and provide other mandatory training.

3. Foundation Building

Ensure the onboarding process consistently embodies an organization's culture, mission, employee value proposition, brand, and other foundational elements, recognizing that assimilating these values takes time.

4. Mentoring and Buddy Systems

In partnership with hiring managers, enlist mentors or buddies to provide new employees with guidance, assistance, and insights into organizational nuances.

View our full guide on onboarding process steps.

Innovative Approaches to Onboarding

Various components of an onboarding program can be delivered using different approaches and methodologies combined to suit the organization and available resources.

Some employers are using innovative practices, such as games, video, and team-building exercises, to get new hires excited about joining the company. They're also working to make sure people can hit the ground running with functional workstations and equipment. Some examples of this include: 

Facebook has its "45-minute rule," which means all new employees can begin to work within 45 minutes of arriving because all of their systems and devices have been set up before they report for their first day.

Leaders at Suffolk Construction, a national construction firm based in Boston, invite entry-level hires to participate in a variety of team-building exercises, including rowing the Charles River. 

New employees at Bedgear, a Farmingdale, N.Y.-based manufacturer of performance bedding, take a walking tour of downtown Manhattan to visit other retailers that sell customized products, including Warby Parker and Samsung.

View more  original onboarding options, shared from 4 HR leaders . 

Continue Learning About Onboarding

Additional resources:.

• Checklist for Developing Onboarding/New Hire Practices
• New Hire Orientation Checklist
• New-Hire Orientation Process
• New Hire Survey
• New Hire Survey – Remote Employee
• Onboarding Companies and Vendors in the SHRM Vendor Directory  
• SHRM Store resources on  Onboarding

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4 Common Types of Team Conflict — and How to Resolve Them

• Randall S. Peterson,
• Priti Pradhan Shah,
• Amanda J. Ferguson,
• Stephen L. Jones

Advice backed by three decades of research into thousands of team conflicts around the world.

Managers spend 20% of their time on average managing team conflict. Over the past three decades, the authors have studied thousands of team conflicts around the world and have identified four common patterns of team conflict. The first occurs when conflict revolves around a single member of a team (20-25% of team conflicts). The second is when two members of a team disagree (the most common team conflict at 35%). The third is when two subgroups in a team are at odds (20-25%). The fourth is when all members of a team are disagreeing in a whole-team conflict (less than 15%). The authors suggest strategies to tailor a conflict resolution approach for each type, so that managers can address conflict as close to its origin as possible.

If you have ever managed a team or worked on one, you know that conflict within a team is as inevitable as it is distracting. Many managers avoid dealing with conflict in their team where possible, hoping reasonable people can work it out. Despite this, research shows that managers spend upwards of 20% of their time on average managing conflict.

• Randall S. Peterson is the academic director of the Leadership Institute and a professor of organizational behavior at London Business School. He teaches leadership on the School’s Senior Executive and Accelerated Development Program.
• PS Priti Pradhan Shah is a professor in the Department of Work and Organization at the Carlson School of Management at the University of Minnesota. She teaches negotiation in the School’s Executive Education and MBA Programs.
• AF Amanda J. Ferguson  is an associate professor of Management at Northern Illinois University. She teaches Organizational Behavior and Leading Teams in the School’s MBA programs.
• SJ Stephen L. Jones is an associate professor of Management at the University of Washington Bothell. He teaches Organizational and Strategic Management at the MBA level.

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May 17, 2024

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ESOPs and Sustainable Restaurant Culture

4 Min Read 5.14.2024 By MRM Staff

Denver-based chef Justin Cucci has long been a champion for sustainability at his farm-to table eateries. To date, he has opened six restaurants and venues, turning a former mortuary, gas station and brothel all into restaurants with globally inspired locally sourced menus. Cucci also wanted to create a sustainable culture for his employees and implemented a self-funded 100-percent employee stock ownership plan (ESOP) so his 325-plus Edible Beats employees will now share in the long-term financial worth of the company.

To learn more about the pros and cons of putting an ESOP into place, Modern Restaurant Management (MRM) magazine reached out to Cucci. 

How did the idea of Employee Stock Ownership originate and why did you want to do it?

The idea had been kicked around almost five years prior to the ESOP transaction, in 2017. We had finished building brick & mortar restaurants, and my advisors asked me to think about a succession plan and look ahead to the next chapter of the restaurants. 

Initially there were only two routes to take. One was to sell the restaurant group to a private buyer/buyers or investors, and pretty much take the money and run. The other route was to split the restaurants up into individual entities and try to sell the restaurants piece by piece. Both of those choices felt foreign to me, as I wasn't looking to escape and just peace out, and it also felt like it would short change many of the awesome humans that helped me build the restaurants, and grow them.

So when I found out about an ESOP transaction, it really felt like everybody involved would win, basically a wIn-win-win. My family and I would be able to reap the rewards over time, of selling the restaurants to the employees, and at the same time, as seeing the restaurants through as a legacy and long-term business decision.

Additionally, the employees would win, since there is no money needed from the employees, to achieve being an ESOP, and they would share in any and all growth of the restaurant, and the financial gains.

Finally, the guests/community would win, by supporting an employee-owned business that keeps its gains in the local economy, supporting local businesses and individuals.

What was the process and challenges of implementing the plan?

The process was incredibly complex, and very expensive. The initial cost is almost $500,000 to get all of the pieces in place, and create the plan documents, and submit it to the government agency that oversees it. It requires a large team of lawyers, consultants, CPAs, bookkeeping, and bankers, in addition to a Third-Party Administrator and a Trustee.

The biggest challenge might have been the timing, and how that affected financing (or lack thereof) which was the post COVID years of 2021/2022. There was very little to zero support from banks that I had been with for 15 years, and not only was it impossible to get the funds to pay for the ESOP, but many of the loans we had, were called in, since the bankers felt that we were in a high credit risk industry. So, the transaction became even more complex as we sought to pay for the transaction internally, and to essentially do an owner carry note on the loan.

How does it work and what was initial response from employees?

An employee stock ownership plan (ESOP) is an employee benefit plan that gives workers ownership interest in the company in the form of shares of stock.

From day one, employees were both very interested in understanding the benefits, and structure of the ESOP, and how each employee would benefit from the transaction. At the same time, it is a very complex mechanism that takes time to build value, as a business grows, and as we pay down debt. Essentially an ESOP is a big picture plan that can double as an employee's retirement account. So, employees were sometimes confused at how their own contribution could affect the ESOP and benefit their shares.

ESOPs are a slow build, and grow gradually, then suddenly as the business builds value, pays down debt, and increases profitability.

What lessons have you learned in the time it’s been in place?

We have learned many lessons, as a young ESOP. Mostly that we cannot do too much outreach to employees to help them truly understand the structure, vesting and payout of their shares.  We figured out that an ESOP committee was a strong engine of communication, and we created one that had three members from each of our five restaurants. One hourly FOH employee, one hourly BOH employee, and one salaried manager. 

We also learned that financial education is critical for employees to truly understand what brings value and how they can affect that value. We created "ESOP Boards" for each restaurant, that tracks multiple categories in our gross weekly margin, and gives the staff a much clearer picture of the machinations of each restaurant.

How has the plan affected staffing and retention?

There's no doubt retention has increased because of it, but not at the level we would have liked. We still are having turnover that sometimes seems excessive. And though we know of many employees that are connected to Edible Beats in a much deeper way, because of the benefit programs we have, and due to the fact that we are employee owned. 

But in our industry, there is a transient nature to the hourly employees, and they sometimes struggle to see the big picture, and do not always possess the patience to see the ESOP through to fruition.

What do you think other restaurant owners can learn from your example?

I hope that other restaurateurs are willing to look into the pros and cons of an ESOP, there are too few true employee-centric plans that favor the contributions of the employee. ESOPs do just that and there’s zero cost to the employees. 

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A Pennsylvania residency program is attempting to address the radiologist shortage at the local level and is experiencing strong interest in its efforts.

Bethlehem, Pennsylvania-based St. Luke's University Health Network recently launched the Lehigh Valley’s only accredited radiology residency program. The 15-hospital nonprofit has seen booming demand for imaging and needed to take action to secure the necessary workforce.

For the first class that started in July, St. Luke’s received 750 applications, interviewing 82 individuals before settling on the final seven.

“A massive shortage of radiologists is looming,” Robert Fournier, MD, vice chair of St. Luke's Department of Radiology, said in a news item shared by the health system on May 13. “We're not going to fix the national problem, but we're going to fix it here in the Lehigh Valley. We went big. Developing residencies with seven slots was a large lift. Our network does more than 1 million exams per year. That's a large number, and you need a radiologist who specializes in a particular area to read the images.”

Fournier noted that about four radiology positions exist for every radiology resident in the U.S. On top of that, 56% of radiologists are 55 or older and nearing retirement. Technological advances and an aging population are only exacerbating the deficit.

Once it’s fully operational, the program is expected to enroll 28 students. St. Luke’s has made a sizable investment in the effort, leaders noted. It’s allowing faculty members to take time away from reading images to create lectures and case studies. And the network has spent over $25,000 apiece on standard workstations and $80,000 each in mammography. It also has converted a former emergency room for the radiology program, which will eventually relocate to a dedicated educational space.

Residencies will include a four-year diagnostic program, providing trainees with skills needed to become successful radiologists. The DR side will accept six applicants annually, while the seventh slot is for a five-year integrated interventional and diagnostic radiology program. Such specialists will train alongside DR residents for three years followed by two more performing interventional procedures.

St. Luke’s first applied for certification from the Accreditation Council for Graduate Medical Education in September 2022. It based the decision around both health system and community needs and is considering adding an ophthalmology residency to address a local shortage of eye doctors.

Along with addressing staffing shortages, the organization hopes the program will provide purpose to its physicians.

“A residency invigorates radiologists. Sitting next to a bright resident and having them pick your brain daily makes you a better radiologist. It keeps you on top of your game. In turn, working with experienced radiologists benefits residents,” Fournier said.

Read the rest of the St. Luke’s news story here and find previous coverage of the radiologist shortage at the links below.

Related Articles:

Acr urges ‘swift congressional action’ to increase the supply of radiologists, radiologist shortage leaves patients facing imaging delays at upward of 2 weeks in 1 state, moonlighting during vacation 5 short-term process changes to address the radiology workforce shortage, radiology at tipping point with limitations of rvus and the growing shortage of radiologists, could enticing retired radiologists back into practice help solve the workforce crisis, surviving the radiologist shortage: experts discuss private equity and other options at rsna 2023, the physician shortage is here: ama implores congress to address ‘urgent crisis’.

Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic. 

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