Regular vs Flexible Staffing

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Individual project - Regular vs. Flexible staffing : Making use of contingent workers| Submitted by: Fatima Rauf BBA 2K8 (A) Roll no: 11|

Regular vs. Flexible Staffing: Making Use of Contingent Workers

Strategic decisions need to be undertaken to see how much recruiting needs to be done to fill staffing needs with regular full time workers and other contingent temporary part time workers. This lies at the foundation of recruitment decisions. In a business climate where most organizations of various sizes are being forced to become productive, many have turned to distinctive sources of staffing.

Majority of the companies now have thought that retaining a regular workforce carries an excessive cost especially with the added compulsory government costs. Besides the increasing cost associated with full time employees, the increasing rules and regulations have prohibited employers from further recruitment of new employees. Therefore, the need to maximize expertise and reduce costs is changing the traditional business model where everything was required to be done by your own employees to a flexible model utilizing the need of contingent workers. Flexible approaches could consist of temporary regular part time workers, independent contractors, on call, contract company workers, and agency temporaries and direct hire temporary workers. They don’t hire traditional employees which save the organization the cost of full time benefit plans along with an added advantage of recruiting in a slightly different market.

Below, I present evidence to further support my argument and enhance my analysis on why companies prefer to use contingent workers as compared to regular full time workers. Then, I would conclude giving some policy recommendations followed by a final thought.

By the accumulated research I have conducted, I have gained an insight into the business phenomenon of the implications they face using traditional methods vs. flexible approach. I would not go into detail on each type of flexible approach but provide a general detailed overview on flexible approach with respect to traditional methods.

Being aware about the rapidly changing environment in today’s business world, businesses are acknowledged if they are adaptive, nimble and flexible. Temporary staffing became labeled as contingency staffing since it was a unique way of doing business for companies who had to restructure and modernize their processes and minimize their fixed costs in order to compete. Contingency staffing has developed the use of labor in a less temporary manner. Contracting with firms to provide workers with skills and knowledge and abilities to perform non-core business activities on a regular day to day basis has become the factor in every business to achieve flexibility, greater productivity and competitiveness.

Flexible staffing is a strategic business idea where companies first evaluate their vigorous business workload and then recruit contingency staff to complement their permanent workforce in order to achieve maximized profits and productivity. This conveys that contingency staffing is most valuable only then rather than using it as a solution to absenteeism or as replacement of regular full time workers. Its efficiency is often closely associated with the use of flexible staffing arrangements to provide just in time labor system which is derived from the just in time inventory system where if not more or less raw material is ordered for production, then why do that with the human resource. Labor should be effectively managed as well in order to meet the product and service demands and this is what gives them a sustainable competitive edge.

Its use can be maximized by first understanding, who is your current focal workforce, if your company is understaffed or overstaffed, what is the vigorous workload of your company and finally by balancing your workers...
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