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Understanding the Basics
A new hire justification includes the type or nature of staff, the reason for wanting the staff, a summary of the expected duties of the staff, and finer details such as whether the new hire is required on a full-time basis or part-time basis, whether flextime or telecommuting is an option, the earliest and latest date by which the new hire needs to be on board, and whether the requirement is permanent, seasonal, or temporary. The best new hire justification examples are those which substantiate the need for hiring in convincing terms.
One approach toward convincing the need for the new hire is to quantify the business or opportunity lost by not hiring a new staff, and the value the new staff will add to the unit. For instance, a shortage of personnel may lead to others working overtime, leading to loss of productivity and the company paying more in overtime wages. In such a scenario, a new hire results in better productivity per employee at almost the same level of wages.
Specify the tasks and duties of the new hire, stating the value of such tasks to the company and reasons why existing employees cannot undertake it.
A new hire justification could also include the wage for the new hire, expressed as a percentage of the value added by the new hire.
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The new hire justification example that follows is for an administration executive, written by the marketing manager:
The marketing team requires one administration executive, with skills and competency to handle documentation, correspondence, and record keeping.
The new hire will prepare and manage correspondence, reports and documents, handle incoming mail, take and distribute minutes of meetings, maintain schedules and calendars, implement and maintain office and filing systems, collate information from various sources, maintain databases, serve as a central point for disseminating inter-departmental communication, and coordinate the flow of information externally and internally.
At present, the receptionist performs some of these job functions, but the respective functional managers undertake much of these works themselves. Hiring an administration executive will allow managers to delegate such routine matters, leaving them free to perform their core operational functions without distractions.
The managers and staff in the marketing department spend about 20 percent of their time handing correspondence, maintaining files, and performing other duties that the new administration executive will perform. The average salary of a marketing manager is $80,000 per annum, and as such, the cost of these employees performing routine administrative activities costs the company $16,000 per employee or 20 percent of the salary. The new hire would take over the routine administrative functions performed by five managers, worth $80,000 per annum. The cost-to-company for hiring a competent administration executive is only $50,000, thereby leading to a direct savings of $30,000.
Besides the direct savings, the marketing team, freed from the drag of routine administrative duties can devote an extra 20 percent of their time on their core competence, marketing. This will increase sales by an estimated 20 percent, leading to an estimated overall increase in annual net profit by $200,000. The total estimated direct and indirect benefits of the new hire are $30,000 + $200,000 = $230,000 a year.
The requirement is for a full-time permanent staff member. Since the work involves close coordination with all mangers and managing documents physically, telecommuting is not an option. There is no objection to allowing flextime to reduce absenteeism.
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The best practice is to maintain a standard template for new hire justifications. This allows the Human Resource Department or top management considering the request to analyze and process information easily and consistently. Such a template also guides functional managers making the justification, for many functional heads may be unfamiliar on what to include and how to structure the proposal.
Download a free template of a new hire justification from the Bright Hub Media Gallery.
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The author is a graduate in Human Resource Management with 10+ years of industry experience.
Image Credit: freedigitalphotos.net/Renjith Krishnan