Understaffing and Overstaffing—The problem & the solution

Staffing refers to the ongoing exercise of finding, choosing, assessing, and training current or future employees, otherwise known as recruitment and selection. The main goal of this process is to employ the most suitable candidates for the roles needed. 

If staffing numbers are not planned carefully, the result can be overstaffing or understaffing. Both of which create a whole host of issues for a business. Both extremes on the staffing scale can have a direct and negative effect on business growth, profitability, turnover levels, and more. Yet, this is just the tip of the iceberg. 

Understaffing

Understaffing is a situation in which an organization does not have enough employees to do its work properly. It means that there aren’t enough employees to cover all the shifts, production is too slow, or another personnel problem that hurts the business in a similar way.

● An understaffed team is a stressed-out team

● Understaffing leads to higher turnover

● Understaffing can reduce the quality of work

● An understaffed team can stunt business growth

Overstaffing

Overstaffing happens when a business experiences a sudden boom that is followed by a sudden decline. The result is employees who are getting paid to do nothing. Overstaffing can lead to serious financial problems and even bankruptcy if too much money is being wasted on wages.

● Overstaffing means overspending

● Overstaffing reduces engagement levels

● Layoffs are likely

Overstaffing and Understaffing Solutions

1. Staffing software One of the most useful ways to manage the number of employees you have is by using HR solutions software. Using software like Factorial to manage your HR, offers a simple staff management solution. For instance, software to assist in staffing can allow you to set minimum levels of staff required for a business. As such, the software would inhibit employees to take time off if it means going below the level set within the program.

2. Specialist sub-contracting agency One way of solving the problem of staffing is by using a specialized sub-contracting agency. Much like a temp agency, they provide temporary staff to fill roles. Yet, unlike a temp agency, these workers have unique, specialist skills, that could be extremely useful to your business. If you’re unsure about hiring full-time workers in an unstable economic environment, you may want to consider these agencies.

3. Build a talent pool An excellent way to avoid issues with understaffing and talent shortage is by creating an applicant talent pool. This can easily be done by saving the curriculums of all qualified candidates who apply for a position. Having a talent pool can be especially useful for startups and businesses that are growing quickly. You can reduce your cost to hire and time to hire candidates for new positions. 

4. Open communication By having an open-door policy, your employees will feel that they can come and talk to you about staffing problems. Communication is key here. The best way to gauge if employees are feeling stressed and overworked, or on the contrary, that they don’t have enough to do, is through communication. Then, you will know how best to approach balancing out the situation. 

These solutions should offer a way to help you find the right balance between overstaffing and understaffing within your company.