Guilty of overstaffing? Your company’s coffers could look quite bare if you are
Last year was tough for many companies. The challenging economy forced businesses to change the way they operate and to try do more with less - sometimes with less staff - leaving employees overworked and exhausted. The cost of overstaffing is obvious; however, the cost of understaffing is potentially greater.
Ironically, the very action of cutting back on HR to save money can have the opposite effect on a business because having too few people to complete the company or department’s required workload can negatively impact productivity.
Research has shown that overworked staff are more likely to suffer from stress, have low morale, be less productive, make mistakes and negatively influence co-workers and clients. Left unchecked and uncorrected, the situation can easily spiral into a situation where staff are trapped in the doldrums of negativity and exhaustion, operating on autopilot with no energy to inject innovation and creativity into the business, i.e. presenteeism (follow this link to read more articles about presenteeism). If your company is suffering from presenteeism, you need to look at both the cause and the effect of the situation before you lose business.
How will identifying presenteeism rates help your company?
Looking at the reasons or motives behind why employees are not taking sick leave when necessary, and the annual leave they are entitled to by law, will identify the business’ weaknesses in terms of skills, capacity, organisational behaviour and psychology.
5 Reasons for presenteeism among your employees:
1. Concern about an increased workload when they return,
2. Not having completed projects when these are due,
3. Skills shortage within the business,
4. Lack of other individuals to cover their responsibilities while they are off work, and
5. Fear of losing their jobs.
11 Effects of presenteeism:
1. Poor performance,
2. Lack of focus,
3. Negative attitudes and influence on colleagues,
4. Inability to problem solve,
5. Low morale,
6. Increased mistakes,
7. Poor communication,
8. Compromised teamwork,
9. Poor customer service and relationship management,
10. Diminished productivity, and
11. Loss of business.
Although not easy to quantify, the cost of these effects are potentially greater and longer term than the cost of employing more staff. However, the difficult economy and South Africa’s complex labour legislation create a challenging situation for employers:
- If you employ permanent staff to tide you over in your busy times, you’ll have a staff surplus during quieter times. There are similar effects and costs of underworked staff.
- Staffing to match your business activity average is also not ideal.
What’s the solution?
The solution is to partner with a staffing specialist who can assist with predicting staffing levels, planning and budgeting for staffing costs to support the core permanent staff complement at times when business activity is high. Ideally, the organisation should have the correct experience, expertise and skills to manage an outsourced contingent and flexible workforce, ensuring legislative compliance, quick and effective turnaround and access to the right skills when needed.
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Kay Vittee is the CEO of Quest Staffing Solutions and previously she worked at Absa. Kay is also a superb business leader who inspires her organisation to live the essence of superior customer service. Clients trust her judgement and will continue to include her in driving quality solutions for their businesses. |
