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T4: Labour Shortage / Surplus (Shortage (Fast w High Revocability…

- - - - 'Furloughs' for salary staff (effectively unpaid leave)
      - Cutting hours back for hourly staff
  - - - Pros:
        
        Make room for younger employees and new ideas
        
        Control effects of high retirements #s
        
        Reduce hrly wage costs
      - Cons:
        
        Loose valuable experience
        
        Can loose both good and poor performers
      - Reasons
        
        Older can be more expensive
        
        Aging workforce
  - - - Reasons
        
        Tech upgrades
        
        Poor Organisational Performance
        
        Location changes
        
        Recessions
        
        Post Merger/acquisitions
      - Cons:
        
        Reputation - w customers and future employees
        
        Lower service levels
        
        Human/Society Impact
        
        Reduced social networks in org
        
        Loss of high-value talent
        
        Reversal is slow and difficult
        
        Moral/motivation amongst reaming staff reduces
      - Pros:
        
        Immediate cost reductions
        
        Opportunity to cut dead-wood
      - Best practice:
        
        Perform surgical strategic cuts - e.g. leave front-line services alone but tighten up administrative services
        
        Avoid indiscriminate across the board cuts
        
        Communicate need for cuts clearly
        
        Use fair practices for selecting and implementing cuts
- - - - Pros:
        
        Temp agencies will screen/train
        
        Can test options before committing to permanent employees
        
        Match sales rise/falls
        
        Can buffer 'core employees' from burnout
      - Cons:
        
        Low level of commitment and engragement
        
        Tensions ee temps and permanents
        
        Lack of consistency for customers
    - - Pros:
        
        Access to expensive equipment or expertise that an org cannot afford internally
        
        Cost efficiencies of shared facilities/people
        
        Readily available in some industries - no set-up time
        
        Reduces time internal hire-skilled managers are doing low-skilled admin work - frees them up for strategic objectives
      - Cons:
        
        Security
        
        Customer experience/relationships
        
        Quality control
        
        Needs considerable oversight and planning
      - Notes
        
        Immigration can be another source of labour - govt regulations make this tricky though
        
        Offshore outsource companies have now started opening branches in rural US to provide 'local' outsource options