What if I told you the secret to hiring is hidden in your business’s analytics?
When hiring new staff, there are plenty of considerations. From budgeting for employee compensation to allocating training or delegating time, effective hiring requires careful balance to ensure you find someone who adds value to your business.
Too often, however, business owners go about hiring in all the wrong ways. Perhaps you think you need a new virtual assistant because everyone you know has one (hi, FOMO). Or maybe you’re in a panic and think hiring support ASAP will solve your problems, so you hire a bunch of people all at once and hope for the best.
While there’s no denying the potential value associated with team building, random acts of hiring often lead to more trouble than they solve. Bring on the wrong people, and you’ll waste time and money training them and correcting mistakes.
Whether you’re hiring an employee, using a project-based freelancer, sourcing an agency, or bringing on a consultant, building a team is critical to growing and scaling your business. It’s essential to get it right.
To hire the right people for the right roles at the right times, start by evaluating key business metrics. Here’s how.
Start with easy money
This isn’t about how much you can afford to pay someone, but rather how well you or your sales staff can close sales. If your close rates are below 50% for referrals and below 30% for cold leads, you may want to consider hiring a sales consultant or sales associate to boost those numbers.
Business owners often think they need more marketing to solve their sales problems, but marketing with weak sales rates is always an expensive proposition. Increasing your close rate is an effective way to boost profits and get more money in the bank. Whether you opt for a dedicated salesperson or an expert coach, focus on increasing your close rate first and you’ll easily be able to afford to hire more team members later.
Evaluate interest in your business and services
How do you know if people are interested in hiring you or using your services? They contact you. Ask yourself how many inquiries your website generates each month. If your website fails to convert 1–3% of web traffic into inquiries, start by hiring a copywriter who specializes in conversion rate optimization. Then, get an analytics professional who can collaborate with the copywriter to set up tests and further optimize the results.
Mind your cash flow and profit margins
If you have a steady stream of clients but struggle to pay your bills, it’s wise to hire a financial professional to oversee your finances. A certified public accountant (CPA), financial advisor, or fractional chief financial officer (CFO) can help you get a grip on your numbers and drive your business in a more sustainable direction.
Pay attention to those reviews
When negative reviews and poor customer service damage your business’ reputation, consider hiring a project manager or consultant who specializes in managing teams and client relationships and fulfillment. Allow them to evaluate your team’s performance and adjust processes as needed.
Make sure you’re getting enough traffic.
If your website traffic is low, hire an analytics professional to audit and diagnose your website’s performance issues. They can guide you toward the best person to fix it, whether an SEO specialist, web designer, ads expert, or social media manager. With web traffic, there is no one-size-fits-all, so rely on a data expert to “look under the hood” and point you in the right direction.
So, the next time you think hiring is the answer, don’t jump to find the first VA or social media manager just because it seems like the right solution. Instead, check your analytics and let the data guide you in identifying the best channel to increase profits and grow.
Once you start generating more income, you can start thinking about outsourcing those unappealing administrative tasks later—but until then, focus on your bottom line!