Overstaffed? How to spot the signs before it becomes a problem

Overstaffing can be a big problem for small businesses, especially when seasonal peaks drop and things get back to business as usual. So how can you end overstaffing without jumping to layoffs? Well, start with forecasting, planning, cross-training, and Homebase to help you through it all.

Read on to learn more about the symptoms of overstaffing, how to fix it, and how to keep your employees happy—and most importantly, working.

What is overstaffing?

We speak of overstaffing when there are more employees than necessary to meet the requirements of a company. Essentially, that's too many workers for the workload.

Overstaffing can be a costly problem for many types of small businesses. From landscaping to veterinary clinics, it's important for a business to regularly assess its staffing needs and workload to ensure it's avoiding overstaffing.

What are the causes of being overstaffed at work?

Let's not underestimate the causes of overstaffing. There can be a lot, especially when you're too busy running your business to fully and continually assess business demands and their impact on your staff.

Let's take a step back from your desk or wherever you are reading this article, and reflect on the reality of your business. Think about the staff who work for you and the tools you use to manage their time. Be realistic about your current ways of working: no judgment here, just solutions.

Not using online tools to track time and schedule your employees

If you're wondering, "Tools, what tools?", this might be one of the reasons you're overstaffed in your workplace, even if you don't know it.

Think about planning and tracking time. If you use outdated tools, such as paper timesheets and spreadsheets, you risk missing key indicators of success, or lack thereof. For example, it's Thursday morning at the store and you have four people working in the sales room, plus two cashiers, all for a shift that hasn't been busy since the holiday rush.

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But no one told you. For what? Maybe it's because they assume you know, you are the business owner after all. Or maybe it's because working a relaxed Thursday shift is exactly what your team wants. Hey, if they don't make a commission, what's the difference?

Now imagine being able to automatically sync your store's sales with schedules and bring your staff, their hours, and their sales together in one place to find out who's and what's on your day and how much each brings in. This type of information could give you a better understanding of your schedule and whether it makes financial sense to increase or decrease staff on certain shifts. That's the power of modern time tracking tools. Not only do they let you know who's in and out, but depending on the type of time tracking tools you use, they can work with other software you have in place. For example, a tool like Homebase lets you integrate with other systems to track sales, schedule staff, and complete payroll to help you identify where there may be labor leaks in your business. , that's to say. overstaffed.

Overhiring a team due to incorrect forecasts

Then we have overhiring: hiring more employees than necessary. This is not uncommon for businesses, especially when anticipating peak periods, such as the summer patio season or the holiday shopping rush.

However, if forecasts are not correct or if employees stay at work longer than necessary, overstaffing can occur. And while having a surplus of workers might not seem like a bad idea, it can lead to lower productivity and job satisfaction.

Here's how: When employees don't feel like they have enough meaningful work to do, even if that work involves emptying the dishwasher for hours, they can feel undervalued. It creates distance with themselves, the work they do, and ultimately the customers you serve.

A lack of research on business needs

Research isn't just for your business plan. When it comes to reducing overstaffing, ongoing research is necessary. It helps you understand the fl...