Approaches to Staffing

This section explains approaches to staffing covering, staff as an asset and a fixed cost, flexible workforces, distinction between dismissal and redundancy and employer and employee relationships. 

Staff as an Asset and Staff as a Cost

Businesses often view their workforce in different ways, depending on their approach to staffing and the value they place on human resources.

• Staff as an Asset: This perspective sees employees as valuable contributors to the organisation’s long-term success. The workforce is viewed as a key resource that, when properly developed and motivated, can significantly improve business performance. Companies adopting this view are likely to invest heavily in training, offer career development opportunities, and foster a positive organisational culture. This approach aligns with the concept of high commitment management, where employees are seen as partners in achieving organisational goals.
• Staff as a Cost: This view focuses on minimising the financial burden of employees. Businesses that see staff as a cost aim to reduce wages and benefits where possible, optimise productivity, and keep staffing levels as low as necessary. This approach is often associated with more transactional relationships with employees and is typically adopted in industries where the focus is on cost control and efficiency, such as retail or low-skilled manual work. This view can lead to a more utilitarian approach to staff, where workers are seen primarily as resources to be used for specific tasks.

Flexible Workforce

The concept of a flexible workforce refers to staffing arrangements that allow businesses to adapt to changing conditions in the market and their own internal needs. There are several methods by which businesses achieve this flexibility:

• Multi-Skilling: This refers to the practice of training employees to perform a variety of tasks within the business. By developing a multi-skilled workforce, businesses can respond more effectively to fluctuating demand and make more efficient use of their resources. Employees are able to step into different roles as needed, which increases organisational flexibility and reduces the need for external hiring.
• Part-Time and Temporary Staff: Hiring part-time or temporary workers allows businesses to meet fluctuating demand for labour without the long-term commitment associated with full-time employees. This is particularly useful for businesses in industries with seasonal peaks or irregular demand patterns.
• Flexible Hours and Home Working: Offering flexible working hours and the option to work from home can help businesses attract and retain talent, especially in competitive job markets. Flexible working arrangements support work-life balance and can improve job satisfaction and productivity, making it a popular choice for both employees and employers.
• Outsourcing: Outsourcing involves contracting external organisations or individuals to carry out tasks that were previously performed in-house. It allows businesses to access specific expertise, reduce overheads, and increase flexibility by scaling operations up or down as needed. Commonly outsourced functions include IT support, customer service, and logistics.

Distinction Between Dismissal and Redundancy

The terms dismissal and redundancy both refer to situations in which an employee’s employment is terminated, but they differ in their underlying causes:

• Dismissal: This occurs when an employee is terminated for reasons related to their performance or conduct. Dismissal can be either fair or unfair. Fair reasons include misconduct, poor performance, or repeated violations of company policy. Unfair dismissal occurs when an employee is fired without a justifiable reason or without following the proper procedures.
• Redundancy: Redundancy occurs when an employee’s job role is no longer required due to factors such as business downsizing, restructuring, or technological changes. It is not related to the employee’s performance or behaviour but rather to external factors affecting the organisation. Employees who are made redundant may be entitled to redundancy pay, depending on their length of service and the terms of their contract.

Employer/Employee Relationships

The relationship between employers and employees is central to how work is organised and how both parties interact in the workplace. There are different approaches to managing these relationships, with two key types:

• Individual Approach: In this approach, employers deal with employees on a one-to-one basis, addressing issues such as pay, conditions, and disputes individually. It allows for personalised negotiations and is often seen in smaller businesses or in cases where employees have highly specific roles. However, this approach can be less efficient and less powerful in negotiating terms that affect the workforce as a whole.
• Collective Bargaining: This refers to the process where trade unions or employee representatives negotiate on behalf of a group of employees. Collective bargaining typically deals with issues such as pay, benefits, working hours, and conditions, and it can lead to agreements that apply to all employees within a business or industry. It can be more effective in securing better terms for employees, but it may also lead to tensions if employers feel their flexibility is limited by union demands.

Managing people effectively requires understanding the various approaches to staffing and the dynamics between employers and employees. Whether viewing staff as an asset or a cost, using flexible working practices, distinguishing between dismissal and redundancy, or managing employer/employee relationships through individual or collective bargaining, businesses must tailor their strategies to their specific needs. A flexible and well-managed workforce is often the key to sustaining competitive advantage in a dynamic business environment.