Managing a Flexible Workforce and Turnover

Introduction

The strategic staffing topic I have chosen to conduct my research about is the flexible workforce and how managing and utilizing the flexible workforce system can be beneficial to company's when turnover happens. With company's having the ability to use temporary agencies and recruitment agencies, it allows the company to respond to demands quickly without adding full-time staff, worrying about paying benefits and dealing with training staff before they start working since they are already skilled and trained to perform the duties of the job. By utilizing staffing resources, employers can design a workforce strategy that can benefit the company when staff turnover take place.

Problem

Employers are faced with trying to find people that fit with the company culture and values. Employee turnover is significant because, it has morale and financial impact on the day to day operation of an organization. The organization incurs costs in rehiring, training, placement, and motivating employees which is a significant problem. Creating a flexible workforce strategy can help maintain the organizations staffing levels when faced with voluntary and involuntary turnover. According to Jacobson& Safian (2009) "Traditional reasons concerning the need to accommodate fluctuations in workload orabsences in staff are the most commonly cited reasons for using all types of flexible staffingarrangements. Many employers also use agency temporaries and part-time workers to screencandidates for regular positions".

The problem with flexible workers is finding qualified employees who want to be part of a flexible workforce. According to Martin (2011) "Obtaining flexible workers is challenging because people generally prefer jobs that provide a reliable and predictable income stream. This isn't usually the case with flexible workforce position, as companies can't control demand for their products. Companies sometimes try to overcome this by filling their flexible workforce with young workers and retirees who might not need steady income". Finding and keeping employees to fill flexible positions is a major challenge since many people don't like the uncertainty of knowing if they have a job from day to day. Many temporary workers lack commitment to the organization when compared to core workers. According to Eleveld (2011) " Temporary workers have a higher turnover rate and also may pose a security risk. Second, while some temporary employees have specialized skills, many are lacking in this regard. Thus, even when hiring from temporary agencies, a company may want to carefully screen temporary employees for needed job skills. A third problem associated with temporary workers is that they are likely to find it difficult to integrate into the company and may suffer from lower morale. Core workers may feel threatened by the presence of temporary employees, resent any lack of skill that they may have, or even overlook them due to their short term employment. Thus, core and temporary workers may have more difficulty collaborating".

Topical Area

When voluntary turnover takes place, it can be avoidable or unavoidable. According to Heneman & Judge (2009) "Avoidable turnover is that which potentially could have been prevented by certain organization actions, such as pay raise or a new job assignment. Unavoidable turnover represents employee quits that the organization probably could have not prevented, such as people who quit and withdraw from the labor force through retirement or returning to school".

"With involuntary, it is split into discharge and downsizing types" according to Heneman & Judge (2009). When employers downsize, they usually target a group of employees and began a RIF (reduction in force) strategy. This strategy is used so the employer can restructure the organization to reduce cost. According to Abawa (2010) "Reductions in force bring about stressful and charged emotional feelings. Many employees might feel as though they have been laid off unjustly, and seek legal action through the EEOC. They may challenge and claim the selection process was discrimination against a protected group of people". Employers must be careful when involuntary turnover takes place. If someone is discharged or a layoff occurs and a select group is chosen to lose their job, it could put the company "under fire" for discrimination. It is important that the employer have thorough documentation and a solid plan before proceeding with lay-offs and discharge process of any employee. "According to Simmerson & McCormick (2003) "Adequate planning and preparation are crucial to minimize a business legal risk in a layoff. Perhaps the best way to minimize legal exposure when implementing a reduction in force is to create a record of decision-making and implementation processes. Doing that will help an employer withstand later legal challenges, such as discrimination".

When an employee is discharge, it is due to extremely poor/job match such as KSAO's or unacceptable job performance. This occurs when an employee performs poorly on the job consistently for some period of time. Employees that are fired for this reason are not always surprised. This is because a great deal of documentation, communication and re-evaluation is involved when making the decision to terminate employment because of poor performance. Since the employee is being terminated, it is always wise to have thorough documentation. According to Strebler (2004) "The most important rule of thumb is to document everything related to the employee's dismissal. In the case of employees terminated for poor job performance, this means having on file all job evaluations, notices of deficiency, and a rough written transcript of what is said in the exit interview. Written documentation for employees terminated for serious violations in conduct is also required".

Causes

Some of the causes for turnover are that organizations experience talent shortages and skills gaps when they lose valuable employees. According to Dodd (2009) "When the estimated 77 million baby boomers retire between 2010 and 2025, they will take much of their skills and knowledge with them. Further, young people entering the workforce have expectations, priorities, temperaments and work styles that differ from older generations". It is wise for the employer to seek talent that will be a good fit for the position as well as the organization. Recruiting and hiring people who are wrong for the organization can lead to increased turnover, increased costs for the organization, and lowered morale with the existing employees.

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