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To make money, you need to spend money. And everyday you decisively spend money to make more of it. And one of the primary resources that a business spends on is the people & hiring.

Hiring new people is often a solution that immediately comes to mind when we don’t get the expected output from the existing team of employees. Lack of completion of projects and failure to deliver your services on time to clients/customers increases the urgency.  

However, is hiring new people really the solution?   

Why do we hire more and more people?

When workload exceeds, we either run towards hiring new employees or expect more from our existing employees. But if an employee’s workload is way beyond their capacity it is natural that they won’t be able to give optimal performance. This is when you have to take the turn toward hiring. 

Nevertheless, it is observed that this doesn’t happen to be the only reason when businesses hire new people. 

It is not uncommon for business owners to feel that hiring more employees who can be paid less will increase their productivity and solve the inefficiencies in their teams.

But a team’s efficiency depends on several other factors that often get overlooked:

  • Loopholes in the operating process, 
  • Miscommunication between manager and employees, 
  • Lack of clarity regarding the work assigned, 
  • Too much pressure, 
  • Lack of empathy between manager and employees, 
  • Lack of transparency in the team, etc.
  • Lack of trust between manager and employees

But these are issues that will still prevail even when you hire more people. They might help to an extent, but hiring new people without working on these issues is like fixing the surface-level problem and ignoring why the need arose in the first place. 

Straightaway going forward to hire people will come at an expense. Although this seems like an easy way out, it’s not. As a business owner, you need to be mindful of how the company is spending its money.  

Is it even cost-effective to hire more people?

Hiring itself is a time-consuming process. Finding the right people is not an easy job. 

Even if you find one there is a whole process of onboarding them, conducting their orientation, and training them. 

In other terms, you are going to make a human resource investment. Employee’s monthly salary alone might not seem much of a load to you, but the hard work done by your HR recruitment department and trainers will be endured by your company only. Even after all the resources your company provides, there is no guarantee you will get the expected returns. 

What if they resign as soon as the training period ends? What if they aren’t very fast learners? What if they don’t fit in with the rest of your team?

At its core, hiring an employee is a long-term investment. If we try to derive short-term gains from it, it is bound to backfire. But in any case, your team’s performance won’t change overnight.

What can be done? 

As we can see, there are very minute elements at play here that make a huge impact on a team’s overall performance. One of the main differences occurs on a behavioural level between a manager and an employee. A healthy employee-manager relationship can counter at least half of the operational problems if not more. 

Tools can become a very useful mediator in this relationship. It is a well-known fact that a great management tool is an excellent use of technology in improving a team’s working conditions and performance. At the same time, it is also noticeable that it tremendously improves the manager-employee relationship.

Moreover, with the advancement in technology, it has been proven that many tasks that have traditionally consumed only handiwork can now be automated. 

Automation has several applications and its possibilities as a work management tool can significantly improve individual and eventually the team’s productivity. Reducing the time, effort, and cognitive load thereby making the best use of the existing people in the team and further eliminating the need to hire more people unless absolutely necessary. 

In a new study published by Futurism, Michael Chui stated in his report, “In about 60 percent of occupations, over 30 percent of the things that people do could be automated.” 


A few years ago, maybe hiring more people was a more cost-effective way to counter productivity issues at the workplace. The current scenario is changing though. Technology has brought together simple and smart solutions for us that will provide much more value for your money. Hence, our intention should be to make wise decisions and make the best possible use of our available resources.

Aahana Prasad

Product Specialist and Observer

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