Adding additional staff at the proper time is somewhat of a science. They represent a significant portion of your overhead costs. More overhead means less profit. Small companies sometimes have a tendency to view human capital as a measure of their success. Using growth in employee numbers to represent growth in your business success is a dangerous exercise.
Employees add cost.
If revenue is not surpassing the added cost of additional employees, your business is not growing. Growth is only measured through profit. Human resources represent a significant potential liability to your company. It is no secret that labor laws have become increasingly stringent and that employers frequently feel themselves stymied by restrictions that apply to their hiring, promotion, disciplinary and dismissal procedures. Unless your need for additional human resources is real, you may find yourself facing an uncomfortable downsizing or layoff situation.