Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                

Flexible Staffing

Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 2

Case Study #1

Q1) A summary of the possible advantages and disadvantages of flexible staffing. Advantages 1. Labor efficiency is high in a flexible staffing environment. This is because workers are employed only when there is enough work for each and every one of them and there is no wastage in labor costs due to overstaffing. 2. It also reduces the need to have employees work overtime to meet any deadlines. Again this is because whenever there is more work to do, the staffing provider can supply additional hands to get the job done in the specified period of time. This prevents any burnouts and helps the employees lead a healthy and stress-free life. 3. The costs of maintaining the workforce are usually lower in a flexible staffing strategy. The company is not required to invest in its employees to differentiate itself in the labor market. All benefits/employee concerns are taken care of by the staffing agency at some additional cost which usually works out to be lower that the overhead of maintaining a permanent workforce. 4. The company saves time/cost associated with finding the right candidate with the right skill set since all that is taken care of by the staffing agency 5. Along with lower cost of maintaining the workforce, there is no cost associated with termination of employees. There is no need to have a severance package policy in place in a flexible staffing environment. If an employee is underperforming, the hiring company can ask the staffing provider to replace the worker without any additional cost. 6. Since the workers are not employed by the company, the company usually is insulated from most employee lawsuits/legal challenges due to employee grievances. Disadvantages 1. There is reduced employee loyalty in a flexible staffing environment. Since the employees are working for the staffing agency and not the company, they are more likely to give more importance to the needs of the staffing agency than the company they are working in. A typical staffing agency caters to several clients and they might move their best employees to different companies based on who is compensating them the most. If a particular company is not providing the staffing agency with the best fee for its employees, there is a high likelihood that only the average/lower performers are kept at that company by the agency. This is detrimental to
Deciding Whether to Use Flexible Staffing

Page 1

Case Study #1
the employee talent at the company particularly companies that require a lot of innovation/employee creativity and talent to stay in business. 2. There is danger to the intellectual property of any company using flexible staffing. Since the workers are not permanent, they are likely to take away key/differentiating practices at one company to its competitors. 3. Since the temporary workers might be assigned another company for their next project, there is a lot of wasted effort on training the temporary workers. Since existing permanent workers are responsible for training the temporary candidates, there is loss of their productivity as well due to regular trainings at the beginning of each project. 4. A lot of projects attribute their success to team culture, motivation and comradeship that is lacking in teams having both permanent and temporary workers. Since the temporary workers keep changing every time, it is difficult for the permanent workers to develop a good rapport with them. Some of the permanent workers might not get along with a few temporary workers and there could be collaboration issues to the detriment of the project.

Deciding Whether to Use Flexible Staffing

Page 2

You might also like