Why Aren’t Companies Hiring When They Clearly Need to?

There are millions of people out there actively looking for jobs. We see it every day—job seekers posting on LinkedIn, eager to find their next opportunity. At the same time, many businesses are laying people off, leaving those who remain to shoulder even more of the workload. We’ve all experienced it: walking into understaffed businesses, waiting longer than expected, or dealing with service that’s not quite what it used to be. Naturally, customers are frustrated. So, what’s really going on here?

The truth is, many businesses could hire more people, but they often don’t. Why? Because the focus tends to be on hitting short-term goals—whether boosting margins or cutting costs. What sometimes gets missed is the impact that under-investing in staff has on service levels, which can be harder to measure or track effectively. In the long run, both the customer and the company end up paying the price.

When businesses stretch their teams too thin, customers feel it—longer wait times, more stressed-out employees, and a decline in the overall quality of service. It’s frustrating for everyone, and it’s a cycle that can be tough to break. The fewer employees on staff, the harder it becomes to meet customer expectations, leading to a dip in customer satisfaction, and, eventually, a hit to the company’s bottom line.

But we, as CX practitioners, know it doesn’t have to be this way.

A Shift in Focus: Prioritizing Long-Term Success

While running lean might seem like a smart move on paper, it’s not always the best strategy for building customer loyalty or long-term success. Instead, companies should focus on smart growth. That means hiring the right number of employees, providing them with the tools they need to succeed, and ensuring that customers receive the level of service they expect.

Here are a few ways businesses can make that shift:

Invest in the Employee Experience (EX): Employees are the face of your company. If they’re overwhelmed or burnt out, it’s going to show. Hiring enough staff to manage the workload effectively will not only improve morale but also create a better experience for customers. Engaged and supported employees tend to provide better service, which leads to happier customers.

Focus on Metrics That Matter: I wrote about what I call “Metrics Myopia” this summer. It’s easy to get caught up in short-term financial goals, but companies that prioritize customer satisfaction often see better results in the long run. Ensure you’re measuring the right things—service levels, customer retention, and employee satisfaction—alongside traditional metrics like sales and margins.

Reevaluate Cost-Cutting Measures: Cutting costs by reducing staff might work for a while, but assessing the long-term impact is important. If you’re saving money by cutting headcount but losing customers and stressed-out staff in the process, are you really coming out ahead? It’s worth considering the trade-offs.

The Wrap Up

Ultimately, businesses prioritizing the customer experience will thrive in today’s market. Customers remember how they were treated—whether it was a quick and easy interaction or a frustrating one. By investing in the right people and creating an environment where employees can succeed, companies can deliver a consistent, high-quality experience that keeps customers returning. Running lean might help you hit some short-term metrics, but in the long run, investing in your employees and customers will set your business apart.

Remember, when customers feel taken care of, they’ll return the favor.