Hiring is an org design decision

Hiring is an org design decision

As businesses grow, hiring plans naturally start with the roles teams believe they need.

More capacity needed in function A, a leadership role in function B. Each request can be completely valid.

The opportunity is to step back before those roles become a recruitment plan and ask a bigger question: what does the organisation need to look like, and be capable of, for the next stage of the business?

People are one of the biggest investments most organisations make. Good workforce planning helps ensure that investment is made in the right combination of capacity, capability and organisational design.

Start with the work the business needs to do

Before deciding who to hire, start with the strategy and the work required to deliver it.

What does the business need to do well over the next 12 months? What will be different from today? Where will new capability be required? Where is work getting stuck?  

Growth does not always mean adding more people to the structure. A role that worked well at 20 people may need to look different at 50. A leadership team that once made most decisions together may need clearer accountabilities. A founder may need to hand over decisions as new leadership capability comes into the business.

Hiring into the organisation you have today, without considering the organisation you need next, can mean adding capability without fully unlocking it.

Work out what is really driving the need

When a team is under pressure, another person is often the most visible solution. But there may be different things driving that pressure.

A capacity gap means the work is clear but there is more demand than the team can manage.

A capability gap means the business needs skills, experience or judgement it does not have.

An organisational design issue might mean ownership is unclear, decisions are slow, or roles and teams are no longer aligned to what the business needs.

Frequently, it is a combination.

A team may genuinely need more people while also needing stronger leadership and clearer ways of working. A senior hire may be the right answer, but only if decision rights move with the role.  

So the question is not “do we hire or redesign?” It is “what combination of capacity, capability and design will solve the problem, and in what order?”

Look for where the constraint really sits

A hiring request often tells you where pressure is being felt. It does not always tell you what is creating it.

We have seen a business consider adding people to a customer team because workloads had become unmanageable. Looking more closely showed that much of the demand was being created upstream by a product issue. Addressing that changed the capacity requirement considerably. That does not mean hiring was the wrong instinct. It means workforce planning needs to look across the organisation rather than at individual teams in isolation.

Before creating a role, ask where the pressure is coming from, whether the work will continue, and what would happen if you added another person without changing anything else.

Consider the organisation around the role

As organisations grow, structures evolve around existing people and immediate needs. Over time, this can create ambiguity about who owns what, where decisions sit and how work moves between teams.

Workforce planning therefore needs to look beyond headcount. Consider what a new role will genuinely own, which decisions should sit with it, whether leaders have the capacity to lead well and which hires need to happen first.

Sometimes hiring a leader first allows them to shape the team and capability they will own. In other situations, delivery capacity needs to come first. The sequence should follow the problem you are trying to solve.

And structure alone is not enough. New accountabilities may require leaders to delegate differently, managers to build capability in others, or teams to adopt different ways of working.

That is why organisational design, workforce planning and leadership development often need to be considered together.

Plan for change, not only growth

A useful workforce plan should not only answer, “Which roles are we adding?” It should also consider which roles need to evolve, where capability can be developed, where work could be redistributed or redesigned, and where technology or AI may change the work itself.

Sometimes specialist or temporary capability makes more sense than a permanent hire. Sometimes redeployment or development is the best answer. And sometimes external hiring is what is needed.

The goal is not to minimise hiring. It is to make deliberate choices about where people will create the most value.

Better organisation design leads to better hiring

Strong candidates want clarity about what they are there to achieve, what they will own and how decisions are made. The clearer the organisation is about those things, the stronger the brief becomes and the better the chances of making the right hire.

That is the connection between workforce planning, organisational design and hiring:

Strategy tells you where the business is going.
Workforce planning identifies the capability and capacity required to get there.
Organisational design creates the conditions for that capability to perform.
Hiring is one of the ways you close the gap.

Before your next role goes to market, ask what work needs to be done, what is creating the need, how the organisation needs to operate and what combination of people, capability and design will best support what comes next.

You may still arrive at the same hire. But you will know much more clearly why you are making it and what needs to be true for that person to succeed.

Subscribe and be the first to hear when we share ideas.

Other recommended reads
Making hiring easier for everyone involved
03
September
2026

Making hiring easier for everyone involved

We sit down with Jo and Avril and ask what they wish more hiring managers knew before a role goes live.

Read more
Download
The Innovation Loop: What I’ve Learnt Judging New Zealand’s Best Workplaces
02
September
2026

The Innovation Loop: What I’ve Learnt Judging New Zealand’s Best Workplaces

Over the past three years, since Best Places to Work™ New Zealand relaunched, I’ve had the privilege of serving as a judge for the Best Places to Work™ Awards, primarily evaluating the large organisation category. 

Read more
Download
Turning Capital into the Right Team
01
September
2026

Turning Capital into the Right Team

If a big part of your capital raise is going into people, your people plan needs to go further than a headcount forecast.

Read more
Download