Ask yourself some important questions.
1. What do you intend to do with your business for say next couple of years.
2. Fix the short tem and long term goals.
3. What are the things happening around you in your market that can impact your business?
4. Find what changes are required from your part to achieve your fixed goals.
5. If you go with the changes, will you find opposition from your organisation? What are the challenges?
Answers of this questions lead you to estimate the number of people needed (hire, fire,contract,outsource etc).Maybe you can look how your neighbour competitor is handling it.
You must do this process when you find the following signs.
1. Regular disruptions in the process flows resulting in sour relations with clients and customers. Eg. missed deadlines, increased return goods, poor rating, decrease in customer loyalty, regular administration faults.
2. Employees not turning up for work and that resulting in your turnouver. Overstressed employees, poor morale or employees looking for jobs regularly in the moment you feel they have settled with you.
3. Everytime the team works overtime because employees are overworked and given with hell lot of responsibilities.It will result in burnouts and increased cost in long run.