overhire

Overhire refers to the practice of hiring more employees than are strictly necessary for current operations. This can occur for various reasons, often related to anticipated future needs or strategic planning.

Companies might intentionally overhire to prepare for seasonal peaks in demand, such as during holiday shopping periods for retailers or during tax season for accounting firms. This ensures that sufficient staff are available to handle the increased workload without compromising service quality or missing business opportunities.

Another common reason for overhire is to build a talent pipeline. By hiring individuals who may not be immediately assigned to a specific role but possess valuable skills, organizations can have readily available personnel when new positions open up or when existing employees leave. This can shorten the recruitment process for future openings and reduce the risk of being understaffed.

Overhire can also be a strategy to account for potential attrition. If a company anticipates a certain percentage of new hires will leave within their first year, they may hire a larger number initially to ensure they retain the desired workforce size. This proactive approach helps maintain operational continuity.

While overhire can provide flexibility and mitigate risks, it also comes with costs. Companies must manage the expenses associated with a larger payroll, including salaries, benefits, and training, even for employees who are not fully utilized. Careful planning and forecasting are essential to ensure that overhire strategies are effective and financially sustainable.