With the economic recovery, many customers have told us that demand for their products and services has never been higher. And yet, with the labour shortage, they are short of people. Result: Teams already in place have a too-high workload they need to absorb. How far can we “push the machine” before problems start cropping up?
Figure out the production capacity
When a business owns equipment, it generally has a good idea of its capacity. At Solisco, we know the exact quantity of paper that our presses can print when they are working at 3/4 capacity. But this calculation can also be applied to service-oriented businesses.
How many employees do you have? How many hours a week are they available? When you answer those questions, the result is the total number of person-hours you have available in each department. If you accept work beyond this threshold, you will inevitably need to rely on overtime, or hire on more staff.
Push deadlines back
In this situation, remain firm regarding your rates/prices, and your timelines. Accepting a 100% cost-effective project, with a deadline a few weeks away, is often preferable to committing to delivering it earlier. Otherwise, overtime hours at higher rates, and the increased risk of mistakes, may well eat into your profits.
Adjust the rate
Do you ab-so-lutely have to get a project done? Implement a rush rate, which will serve to cover your additional expenditures. If the work is that important, some customers will be prepared to pay to get what they want. If the rush rate is declined, too bad — you’ve already got more than enough work, anyway!