If the 2008-2010 recession has taught us anything, it has taught us that fixed costs can bring a company to its knees very quickly. As we slowly escape the recession, many companies are taking the lesson of fewer fixed costs to heart.
The feature article in this month’s CFO magazine highlights how many companies are reducing their dependence on large administrative groups like finance and information technology. According the article, only 15% of chief financial officers surveyed indicated they are increasing their hiring in the coming year. 
Many finance organizations are focusing on small staffs of professionals who will work on analysis and business planning. The data entry and clerical tasks formerly held by in-house clerical staff are now performed in shared service centers, many of these being overseas.
The business environment continues to be uncertain. Anything you can do to intelligently reduce your risk is a good thing. Your business can follow the model of larger companies by hiring employees only as you need them. Jason Fried and David Heinemeier Hansson call this “hiring for pain” in their best-selling book “Rework”. Fried and Hansson emphasize doing as much as possible with your existing staff until you absolutely need someone to help you in a specific area.
Even if you need help, focus on value and not cost. Many professionals are creating great livings as project-based or “freelance” employees. A company hiring these professionals gain very specific skills and knowledge without the fixed cost of a full-time employee. Just like many companies in the CFO article are focused only on strategically important employees, your company needs to hire professionals who will deliver the most value for your investment. Your business has a limited amount of resources. Do you want to hire a full-time employee for doing the work that a project-based professional could do?
By treating your hiring as an investment and focusing on value, you will make the tough decisions required to maximize your investment and deliver specific results with limited risk.
