Strategic Workforce Planning for Small Businesses: Benefits, Challenges and Tips

Jennifer L'Estrange
October 15, 2021

Red Clover’s founder and Managing Director, Jen L’Estrange, recently provided her expertise to GoodFirms on strategic workforce planning.

We are a professional services firm, and our people are, in a sense, our inventory. We manage the workforce using a target utilization rate. We also know that it takes between 60 and 90 days for a new hire to be fully operational. So, when we are workforce planning, we loosely tie headcount growth to revenue projections, but we don’t lock in a hiring plan for the year. Rather, we will trigger new vacancies when we have an effective monthly utilization rate that is at target. It smooths out our hiring and ratcheting labor costs, and helps prevent employee burnout.”

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The Results

Architects/Engineers

We were referred to a successful values-driven architecture firm approaching a 50 person headcount with HR needs. As they approached that employment milestone, they needed to ensure they had the HR structure to ensure compliance with state and federal regulations and were set up for successful growth. We worked to help put the right policies and processes in place to support the scalability of their organization.

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