Staffing and Excessive Workloads

The following article is a SERMC ReAction, one in a series of 26 papers developed by members of the Structural Engineers Risk Management Council (SERMC) on a variety of current professional practice topics. Learn more about SERMC at www.sermc.org.

What Is the Issue?

Structural engineers are sometimes offered the opportunity to work on a project for which their firm lacks sufficient staff.

The temptation to accept a project — despite staffing deficiencies — can sometimes be irresistible. Perhaps it’s a high-profile commission or a particularly interesting design challenge. Regardless, when a firm works beyond its workload comfort zone, the professional liability risks can be enormous.

A structural engineering firm must give any project careful consideration before it signs the contract.

What Are the Business and Liability Risks?

The risks of accepting a project that stretches the limits of staff endurance — and, consequently, the firm’s ability to maintain quality and meet project deadlines — cannot be understated. As licensed professionals, structural engineers owe a duty to their clients to provide their contracted services in a competent and professional manner.

Let’s examine some of the risks associated with an unmanageable workload:

• Quality control — An excessive workload often means working faster under tighter deadlines. Inevitably, quality control suffers, resulting in errors, omissions and other problems with the design services.
• Missed deadlines — These are not uncommon when a firm operates beyond its productivity rate and can result in delay claims.
• Poor customer satisfaction — Mistakes, delays or a lack of available staff can lead to customer dissatisfaction and damage a firm’s professional reputation.
  Poor employee job satisfaction — An employee working around the clock with little or no personal time is more likely to hold a low opinion of his or her job. This can lead to a morale problem in the office and result in high employee attrition.
• Profitability — More is not always better. If a firm has to subcontract parts of the work or hire temporary staff to complete a project, it could be spending its way out of profitability.

How Can I Manage Those Risks?

When considering projects that could stretch your staff resources, you have the following options:

• Decline the project. This is often easier said than done, but it’s the safest way to protect your firm against the dangers of overextending your staff.
  Hire new employees. The obvious choice — growing your staff can solve workload issues before they occur. Remember, however, that new staff requires a training investment and more senior staff and financial resources must be committed to supervising and mentoring new employees. Additional quality control procedures should also be in place until you are certain that your firm’s standard procedures are adequate.
• Utilize contract employees. Contract or temporary employees can be used to fill gaps in your staff, particularly in short-notice situations. However, like new hires, temps require supervision and additional quality control measures. For firms faced with a sudden, but temporary, loss of staff — an employee out on a four-month disability, for example — temps can be a solution. Remember to weigh the cost implications against the project’s bottom line.
• Contract with another firm. The use of a subconsultant can carry significant cost implications for your firm. Before getting into a situation requiring a subconsultant, it’s best to crunch the numbers to determine if your firm can profitably complete the project. If you use a subconsultant, be sure to get its certificate of insurance and execute an appropriate agreement

Summary

The professional liability risks created by working beyond your firm’s capabilities or comfort zone can be immense. Prior to accepting any project, fully assess the expertise and availability of your staff to determine whether you can competently perform the necessary services to complete the project.

Any decision to accept a project that stretches your workload capacity should be based on a thorough project analysis, including staffing options and a profitability study. And remember: the path to profitability should not come by trimming back professional services.