5 Ways To Determine Optimal Staffing Levels - Human Resources Degrees (2024)

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5 Ways To Determine Optimal Staffing Levels - Human Resources Degrees (1)

Methods For Determining Staffing Needs

  • Evaluate Business Flow
  • Ask Managers
  • Pay Attention To Customer Experience
  • Keep Bases Covered
  • Use Competitors As Benchmarks

How can you understand the staffing requirements of a business? You might be asking, “How many staff do I need?” There are a number of ways human resources departments determine necessary staffing levels at their organizations. Determining these ideal levels is important for every business to meet their staffing needs at all times without having excess staff present or staffing gaps. It helps improve the customer experience and allows businesses better chances for success and growth. Here are some of the methods businesses can use to make critical decisions about their staffing needs and to avoid the negative impact of inadequate staffing or how to increase staffing.

Evaluate Business Flow

Observing and evaluating regular business flow offers key insights into staffing needs. For example, it might be a no-brainer that certain times of the day require more staff to be present than others, such as more wait staff at a restaurant during peak lunch and dinner hours, or more cashiers at a grocery store after many people get off work. In other cases, peak times may not be so easily identified. Human resources departments and managers need to observe the regular ebb and flow of their business operations and from that determine when staffing needs are greater or fewer. Quantifying the data can help.

Ask Managers

An informal but effective way to determine optimal staffing levels is to talk to managers about their needs. Managers typically know when the busiest times are and when they need the most people available. In some cases, it can even be better to give managers the power to determine and act on their own staffing needs, including dealing with having enough staff and long term staffing needs. Observe independently, however, because allowing managers too much freedom can backfire. Excess staff results in needing to pay those workers, so managers shouldn’t be allowed to have more employees at any given time than they realistically need to serve customers and perform their operations within the company.

Pay Attention To Customer Experience

Another key indicator is the customer experience. Businesses can determine this by taking customer surveys or simply observing when customers have a long wait time. If complaints from customers keep cropping up, that is a good sign a company is short-staffed. Companies can then use that data to more effectively determine how many qualified staff members they need present at key times. The main downside to this method is that it tells a company nothing about whether they have too many staff members working at any given time. However, it can still be helpful. In a healthcare setting, it is extremely important to pay attention to nurse staffing levels. This will directly impact patient outcomes.


Keep Bases Covered

All companies should know the roles they always need covered. For example, employees to answer calls and key manager roles may be required at all times. If necessary, make a list of what roles need to be present at a company on any given day. Start with the bare minimum and then go from there. Remember that if too many employees ask for time off at a certain time, some requests will need to be denied in order to meet necessary staffing requirements. A systematic review of your business needs will give you a clear overview of staffing level issues, including potential overstaffing or not having enough staff. Then determine any staffing level issues. Look at the remaining staff and qualified candidates to determine staff numbers and individual roles. It is important to think of the long run and not just short term when making these decisions. There are different ways to come to the right number of staff of each situation.

Use Competitors As Benchmarks

Although an imperfect method, observing competitors can offer important insight into a company’s estimated staffing needs. This is called benchmarking. As the Harvard Business Review notes, there are even a few wide studies that outline ideal staffing needs for companies based on size and type, which is invaluable data for companies to consider and utilize. A business that has a similar size and location and offers a similar product will likely have similar staffing needs to another business.

Concluding Thoughts

Determining required employee levels can be a challenge, but there are plenty of methods and research that can help with staffing strategies. Human resources departments need to pay close attention to staffing levels to ensure the needs of their organization are always sufficiently met. Making staffing decisions to have appropriate staffing levels rather than inadequate staffing levels provides a positive organizational culture and can help avoid increased workload on qualified staff which could lead to high staff turnover.

Related Resources:

  • 50 Most Affordable Small Colleges for a Human Resources Degree and HR Study
  • How Much Do Staffing Agencies Make?
5 Ways To Determine Optimal Staffing Levels - Human Resources Degrees (2024)

FAQs

5 Ways To Determine Optimal Staffing Levels - Human Resources Degrees? ›

You can use a simple formula to calculate your staffing gap: Future Demand - Current Supply = Staffing Gap. A positive gap means that you need to hire more staff, while a negative gap means that you need to reduce your staff.

How are staffing levels calculated? ›

You can use a simple formula to calculate your staffing gap: Future Demand - Current Supply = Staffing Gap. A positive gap means that you need to hire more staff, while a negative gap means that you need to reduce your staff.

How do you plan staffing levels? ›

Steps to Complete a Staffing Plan
  1. Step 1: Evaluate Goals. The first step in developing a staffing plan is to evaluate the needed goals to achieve. ...
  2. Step 2: Identify Influencers. ...
  3. Step 3: Analyze the Current State of the Function. ...
  4. Step 4: Envision Needs. ...
  5. Step 5: Conduct a Gap Analysis. ...
  6. Step 6: Develop a Solution Plan.

How do you forecast staffing levels? ›

To take the guesswork out of team planning and scheduling, follow these five steps to forecast staffing needs.
  1. Define your business goals. ...
  2. Investigate the current workforce. ...
  3. Consider your future needs. ...
  4. Identify gaps between current and future talent pools. ...
  5. Fill workforce gaps.
Apr 2, 2024

How do you ensure adequate staffing levels? ›

What are the most effective ways to ensure adequate staffing levels?
  1. Assess your current and future needs.
  2. Develop a recruitment strategy.
  3. Implement a retention strategy.
  4. Manage your staff performance.
  5. Adjust your staff levels as needed.
  6. Evaluate your staffing outcomes.
  7. Here's what else to consider.
Nov 9, 2023

What is the optimal staffing model? ›

A staffing model is a strategic approach to determining the optimal number and mix of employees required to meet an organization's operational needs. It is a comprehensive plan that outlines the staffing requirements, including the roles, skills, and experience necessary to achieve business objectives.

What are the methods of calculating staffing? ›

Step 1: Number of rooms multiplied by number of hours per day multiplied by number of days per week = total hours to be staffed per week. Step 2: Total hours per week multiplied by number of people per room = total working hours per week. Step 3: Total working hours/week divided by 40 hours worked/week = basic FTE.

What is a staffing formula? ›

Staffing Formulas, also known as Course Classifications, determine the character and size of your class. Because the choice of Staffing Formula also has consequences for faculty workload, be sure to consult with the chair of your department before submitting your course proposal.

What is the staffing level model? ›

A staffing model is a set of procedures, policies, and practices used to manage the workforce of an organization. It considers factors such as the organization's size, industry, workforce demographics, and business objectives to determine the appropriate staffing levels and types of employees needed.

What is an optimal staffing plan? ›

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.

What is an HR staffing plan? ›

A staffing plan is a strategic planning process by which a company (typically led by the HR team) assesses and identifies the personnel needs of the organization. In other words, a good staffing plan helps you understand the number and types of employees your organization needs to accomplish its goals.

What is staffing strategy in HRM? ›

Strategic staffing means making sure your organisation has the workforce it needs to deliver its current and planned business objectives. Markets and plans can change. Many organisations have short, medium and long-term strategic staffing plans and review them regularly in context of overall business strategy.

How do you calculate optimal staffing level? ›

Using the statistical regression method to calculate staffing needs can help businesses determine how many staff members they need on any given day or shift. It considers factors like current sales, seasonal trends, and historical experience to provide accurate, reliable, and up-to-date estimates.

What are the five staffing models? ›

  • Full-Time Employees.
  • Staff Augmentation Resources (temporary staff to supplement full-time internal employees)
  • Professional Services (consultants)
  • Outsourcing (third-party staff performing the work indefinitely)
  • Hybrid Model.
Sep 5, 2019

How do you evaluate staffing levels? ›

Staffing Levels are determined by conducting a comprehensive analysis of various factors. This includes assessing the workload and operational requirements of the organization, considering historical data and trends, and taking into account industry benchmarks and best practices.

How do you determine optimal number of workers? ›

These are a few of the factors to consider when determining how many employees to hire for your company:
  1. Monthly revenue. ...
  2. Company culture. ...
  3. Benefit plans. ...
  4. Maximizing productivity. ...
  5. Examining your KPIs. ...
  6. Reviewing current employees. ...
  7. Consider your needs. ...
  8. Analyzing employee ROI.

What is the formula for staffing requirement? ›

Step 1: Number of rooms multiplied by number of hours per day multiplied by number of days per week = total hours to be staffed per week. Step 2: Total hours per week multiplied by number of people per room = total working hours per week. Step 3: Total working hours/week divided by 40 hours worked/week = basic FTE.

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