Here at Buildify, we have determined through experience as well as hardened analytics, that a Staffing Model is a foundational business system that all successful businesses must have firmly in place as they grow and scale. This article explains what a functional Staffing Model is through the lens of the Buildify Method.
The first aspect of a functional Staffing Model that is to be addressed is the ‘Mindset’ component of your Staffing Model. Your Staffing Model affords you a bird’s-eye-view of your company. Using your Staffing Model to plan out your staffing needs is overwhelmingly necessary to hit your Annual Sales Goal, and one of the most empowering benefits to a Staffing Model. Most CEO’s hire as they go and figure it out as they go, which is shortsightedly reactive as well as difficult to budget for.
Having your staffing needs figured out and being able to visually share this with your team helps the team feel connected and on the same page. It also shows planning and foresight that as a welcome side effect builds confidence with your team.
The structural aspects of a Staffing Model are also important to understand and appreciate. There are several key components the Buildify Method recommends your Staffing Model contain.
The first step is Buildifying your Staffing Model is to list in ranked order every position that will need to exist this year in order to achieve your company’s goals. Remember to list the positions, not the names of individuals. People come and go, but positions always exist. Also keep in mind for this step that you are being future-focused as to what positions will need to exist in order for your company goals to be achieved.
Once you have all the positions laid out, write down under each position the ‘Monthly Sales Goal’ for that position. Some positions like Office Manager may not have a sales goal, which is fine, just leave them blank. Other positions will be customer facing and able to bring in and/or close customers. One of the reasons it’s important to note the sales goal for each team member is that you generally want your team members bringing in at least 2x their compensation. Each industry has its specific ratios, but a generally accepted rule of thumb to start with is 2x their pay. Another Buildify Method reinforcement for doing this is that you become enabled to break down your Annual Sales Goal by staff member to see specifically who is responsible for producing which pieces of the goal. This helps you better allocate proper sales targets per staff member.
The next section to add under each team member is the “Position Compensation Range”. This allows you the owner, to be clear on the low, middle, and high pay range of each position in your company. Often we hear owners recall having stumbled when they were asked what the pay range of a given position is because they don’t have it documented. Often it turns into an emotional decision vs working off of a set system that is consciously put in place. We recommend CEO’s do industry research to determine the industry low, medium, and high pay range for each position in their organization, then place that range into their Staffing Model. The clarity this system affords a company and its staff is tremendous. It may not be the sexiest given system in a company, but its value is undeniable.
Finally, after you have the position compensation range set for all the positions in your company, the last step is to fill in for each position listed the ‘Actual Pay’ for each staff member.
In the Buildify Method to building Staffing Models, we prefer to total the staff pay at the bottom of the model so we can see what our total Human Capital cost is for the company. This is very powerful information that affects the company Budget and the company’s Capacity Model.
At Buildify Systems, we’ve created a customizable Staffing Model system for you as part of our software suite. Our functional Staffing Model automatically talks to several other key systems in our suite. For example when you add a new position to your Staffing Model your system will automatically populate a Job Description template for that position.
Visit our blog page for more information on creating a functional Job Description! Or watch our finance seminar at… Website link: https://www.buildifysystems.com/seminars/
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Here at Buildify, we are committed to empowering business owners by giving you powerful tools that are highly effective and produce meaningful results.
In the Buildify Systems platform, we have made creating and implementing this key system easier and more efficient for you. Not only do we provide a dynamic Staffing Model template that you can customize to fit your company as your company grows and scales, but we also provide Job Description templates that you can tailor to fit your specific businesses identity. Aaron Keith, our founder and master business coach, has provided an example Staffing Model along with example Job Descriptions that he uses with his clients the world over.
A business naturally excels when the proper systems are in place! Another powerful feature that supports you in better owning and operating your company, is the way that many of the key business systems in our suite connect to your Dashboard. Your Dashboard will show you all of the Key Performance Indicators (KPI’s) of your business in real-time!
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