In Periods of Hyper Growth, Be Careful Not to Overhire

Having worked in the digital space for nearly two decades now, and being through periods of immense growth as well as massive downturn (Yes, I was there for the bubble and burst way back around 2000) there’s one mistake I have seen companies make countless times when they were in the midst of major growth: the tendency to overhire.

It usually looks something like this: a company enters a period of strong growth, either just as they are launching, or as there’s been a change in the market that’s allowed them to grow at a rate considerably more accelerated than what they are accustomed to. Amidst a combination of excitement, fear (that you may not be able to keep up) and a few pairs of rose-colored-glasses there is a tendency to bulk up the team in anticipation of the growth, oftentimes planning the hiring to go along with the growth trajectory.  What I’ve seen happen in most of these instances is that the need for additional bodies is a little less than was anticipated, and you end up either looking for work for people to do to keep them busy and engaged, or you end up having to let people go.
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