{"id":18024,"date":"2020-05-21T16:05:51","date_gmt":"2020-05-21T14:05:51","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=18024"},"modified":"2022-06-14T18:46:22","modified_gmt":"2022-06-14T16:46:22","slug":"understaffing-overstaffing-guide","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/understaffing-overstaffing-guide\/","title":{"rendered":"Understaffing and Overstaffing &#8211; A Delicate Balance\u00a0"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Hiring and retaining the right employees is one of the biggest challenges both HR and employers have. As long as there is a business to run, staffing will be an ever-present challenge. Yet, finding the balance between having too few and too many employees can often be tricky. Too many workers can drastically increase your overhead costs, whereas too few can limit business expansion.\u00a0<\/span><span style=\"font-weight: 400;\">So, <strong>how do you find the perfect balance?<\/strong> In this post, we\u2019re going to look at the effects of overstaffing and understaffing, and offer some solutions to these issues.\u00a0<\/span><br \/>\n<div class=\"js-toc toc\">\n<p class=\"js-toc-title toc__title\">Table of Contents<\/p>\n<nav id=\"fac_toc_nav\" class=\"js-toc-nav toc__nav\" aria-label=\"Table of Contents\"><ol class=\"toc__list toc__list--level-1\"><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-1\" href=\"https:\/\/factorialhr.com\/blog\/understaffing-overstaffing-guide\/#understaffed-and-overworked\" title=\"Understaffed and overworked\" data-target-id=\"understaffed-and-overworked\">Understaffed and overworked<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-2\" href=\"https:\/\/factorialhr.com\/blog\/understaffing-overstaffing-guide\/#understaffed-and-overstaffed-meaning\" title=\"Understaffed and overstaffed meaning\" data-target-id=\"understaffed-and-overstaffed-meaning\">Understaffed and overstaffed meaning<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-3\" href=\"https:\/\/factorialhr.com\/blog\/understaffing-overstaffing-guide\/#understaffing-problems\" title=\"Understaffing problems\" data-target-id=\"understaffing-problems\">Understaffing problems<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-4\" href=\"https:\/\/factorialhr.com\/blog\/understaffing-overstaffing-guide\/#disadvantages-of-overstaffing\" title=\"Disadvantages of overstaffing\" data-target-id=\"disadvantages-of-overstaffing\">Disadvantages of overstaffing<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-5\" href=\"https:\/\/factorialhr.com\/blog\/understaffing-overstaffing-guide\/#overstaffing-and-understaffing-solutions\" title=\"Overstaffing and Understaffing Solutions\" data-target-id=\"overstaffing-and-understaffing-solutions\">Overstaffing and Understaffing Solutions<\/a><\/li><\/ol><\/nav><\/div><br \/>\n<!--HubSpot Call-to-Action Code --><span id=\"hs-cta-wrapper-fc66a343-143b-4833-bcae-29b29f39f6e3\" class=\"hs-cta-wrapper\"><span id=\"hs-cta-fc66a343-143b-4833-bcae-29b29f39f6e3\" class=\"hs-cta-node hs-cta-fc66a343-143b-4833-bcae-29b29f39f6e3\"><!-- [if lte IE 8]>\n\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/4960096\/fc66a343-143b-4833-bcae-29b29f39f6e3\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" id=\"hs-cta-img-fc66a343-143b-4833-bcae-29b29f39f6e3\" class=\"hs-cta-img aligncenter\" style=\"border-width: 0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/4960096\/fc66a343-143b-4833-bcae-29b29f39f6e3.png\" alt=\"New call-to-action\" width=\"676\" height=\"232\" \/><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(4960096, 'fc66a343-143b-4833-bcae-29b29f39f6e3', {\"useNewLoader\":\"true\",\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n<h2>Understaffed and overworked<\/h2>\n<p>Since the onset of the pandemic, employers have faced record numbers of employee resignations. The so-called &#8220;Great Resignation&#8221; hasn&#8217;t shown any signs of slowing down either.\u00a0 In March of 2022 alone, <a href=\"https:\/\/www.cnbc.com\/2022\/05\/03\/job-openings-and-the-level-of-people-quitting-their-jobs-reached-records-in-march.html\" target=\"_blank\" rel=\"noopener\">4.5 million workers in the United States quit their jobs.\u00a0<\/a> The large quantity of voluntary resignations has left many companies understaffed and overworked.<\/p>\n<p>The current situation has particularly impacted the work of <a href=\"https:\/\/factorialhr.com\/blog\/recruiting-manager-roles\/\" target=\"_blank\" rel=\"noopener\">recruiting managers<\/a> and <a href=\"https:\/\/factorialhr.com\/blog\/small-business-hiring\/\" target=\"_blank\" rel=\"noopener\">small business hiring<\/a> managers, who find it difficult to maintain a balanced workforce and fill vacancies.\u00a0 The pressure is high to find top talent and to do it fast. If not, understaffing can easily lead to bigger and more cyclical problems.\u00a0 If good talent leaves and is not immediately replaced, remaining team members are left to pick up the slack.\u00a0 As a result, <a href=\"https:\/\/factorialhr.com\/blog\/employee-burnout-in-remote-workers\/\" target=\"_blank\" rel=\"noopener\">employee burnout<\/a> and <a href=\"https:\/\/factorialhr.com\/blog\/causes-high-turnover-rate\/\" target=\"_blank\" rel=\"noopener\">turnover<\/a> run rampant, and the company&#8217;s work culture suffers.<\/p>\n<h2><strong>Understaffed and overstaffed meaning<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">At the heart of every company, is its staff. The workers are what make the cogs go round. Yet, the task of finding employees is not an easy one. This process is known as staffing<br \/>\ng. Staffing refers to the ongoing exercise of finding, choosing, assessing, and training current or future employees, otherwise known as <a href=\"https:\/\/factorialhr.com\/blog\/recruitment-and-selection\/\" target=\"_blank\" rel=\"noopener noreferrer\">recruitment and selection<\/a>. The main goal of this process is to employ the most suitable candidates for the roles needed. It can be done either within the company itself or by outside contractors, depending on the company\u2019s needs. The activities normally carried out within the staffing process include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Profiling the job position\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Choosing employees<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Setting standards of performance\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Assessing performance levels\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Training and further development<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It seems pretty straightforward. Yet, often there are a lot of issues with this lengthy process, which can be problematic for a company. You might be wondering, \u201c<strong>how can staffing affect a business?<\/strong>\u201d Forecasting staffing activity is an important element in the strategic planning of a company. 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.\u00a0<\/span><\/p>\n<h2><strong>Understaffing problems<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Here\u2019s a scenario you may be familiar with.\u00a0 After a slump, the economy starts to pick up. Customers start coming to your business again and demand slowly increases. Now, you may find that you\u2019re understaffed. But, what does it mean to be understaffed at work?\u00a0<\/span><\/p>\n<h3><strong>An understaffed team is a stressed-out team<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">If there are not enough staff on board to carry out tasks, then it will mean that a small number of employees have too much to do. Piling the work on a few will put pressure and stress on those individuals. They may become overwhelmed with the workload and hence suffer from stress-related problems,<\/span><span style=\"font-weight: 400;\"> leading to poor performance levels<\/span><span style=\"font-weight: 400;\">. This reduces productivity and the health of your workforce, meaning that some workers may even have to <a href=\"https:\/\/factorialhr.com\/blog\/paid-time-off-usa\/\" target=\"_blank\" rel=\"noopener noreferrer\">take time off<\/a>.\u00a0<\/span><\/p>\n<h3>Understaffing leads to higher turnover<\/h3>\n<p><span style=\"font-weight: 400;\">Due to the increased workload, some employees may become disillusioned with the business. They may feel overworked and undervalued. As a result, you may find that <\/span><span style=\"font-weight: 400;\">employees leave the company to find work with another business<\/span><span style=\"font-weight: 400;\"> that has enough staff to help cover the volume of work. <a href=\"https:\/\/factorialhr.com\/blog\/causes-high-turnover-rate\/\" target=\"_blank\" rel=\"noopener noreferrer\">Causes of high turnover rates<\/a> like this, can easily be avoided.<\/span><\/p>\n<h3>Understaffing can reduce the quality of work<\/h3>\n<p><span style=\"font-weight: 400;\">As employees have a high workload, the quality of this work is likely to be lowered. The business\u2019s product and service will suffer as a result. You may be saving money on workforce costs, but the quality of the work you have in place could be unsatisfactory.\u00a0<\/span><\/p>\n<h3><strong>An understaffed team can stunt business growth\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Understaffing in the workplace can be problematic also as it may limit the company\u2019s abilities to expand. When the business starts to expand, if your workforce does not grow with it, this means that expansion will be stunted. As such, organizations may miss out on exciting new opportunities for growth.<br \/>\n<\/span><\/p>\n<h2><strong>Disadvantages of overstaffing<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Next scenario. Your company was doing well, demand was high and the size of your workforce was just right. Then, out of nowhere, the economy nosedives leaving you with a sharp decline in demand and an office full of workers. Suddenly, you\u2019re overstaffed. So, what problems can this bring to a business?\u00a0<\/span><\/p>\n<h3><strong>Overstaffing means overspending<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">By far the biggest problem associated with this is the cost of paying employee salaries. The biggest expenditure for any company is its workforce. Yet, it&#8217;s highly unlikely that an employer would want to pay this large expense to a workforce that doesn\u2019t have any work to do. You will notice that you\u2019re overstaffed if you see that your labor costs remain high but your sales revenue is decreasing. This is a big warning sign. If not addressed, it can lead to serious financial problems or even bankruptcy.\u00a0<\/span><\/p>\n<h3><strong>Overstaffing reduces engagement levels<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Typically, when an organization is overstaffed, there is not enough work to go around for everyone. You see that employees have more time on their hands and tasks are few and far between. This can lead to employees feeling disengaged and also result in low levels of <a href=\"https:\/\/factorialhr.com\/blog\/organizational-commitment\/\" target=\"_blank\" rel=\"noopener\">organizational commitment<\/a> to the company. Employee morale is low, and although there are plenty of staff, the business suffers.\u00a0<\/span><\/p>\n<h3><strong>Layoffs are likely<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">If a company is overstaffed, it&#8217;s likely that it\u2019ll have to consider<\/span> <a href=\"https:\/\/factorialhr.com\/blog\/laying-off-employees\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">laying off employees<\/span><\/a><span style=\"font-weight: 400;\">. This can either be temporary or permanent, depending on the business\u2019s growth potential. As such, it can cause serious financial problems for employees. Although this is the worst-case scenario, layoffs save money and hence save the business from going under.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><br \/>\n<!--HubSpot Call-to-Action Code --><span id=\"hs-cta-wrapper-29df4b36-4624-4dea-afca-948e15862b68\" class=\"hs-cta-wrapper\"><span id=\"hs-cta-29df4b36-4624-4dea-afca-948e15862b68\" class=\"hs-cta-node hs-cta-29df4b36-4624-4dea-afca-948e15862b68\"><!-- [if lte IE 8]>\n\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/4960096\/29df4b36-4624-4dea-afca-948e15862b68\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" id=\"hs-cta-img-29df4b36-4624-4dea-afca-948e15862b68\" class=\"hs-cta-img aligncenter\" style=\"border-width: 0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/4960096\/29df4b36-4624-4dea-afca-948e15862b68.png\" alt=\"New call-to-action\" width=\"900\" height=\"308\" \/><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(4960096, '29df4b36-4624-4dea-afca-948e15862b68', {\"useNewLoader\":\"true\",\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><br \/>\n<\/span><\/p>\n<h2><strong>Overstaffing and Understaffing Solutions<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">As shown above, if staffing is not managed correctly and the scales tip to one side, a number of problems ensue. Finding the balance between employing too many staff or not enough, is tricky, even for the most seasoned of HR professionals. So, what are some ways to balance staffing levels within the workplace? Here are some key ways to solve the problem of overstaffing and understaffing.\u00a0<\/span><\/p>\n<h3><strong>Staffing software<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">One of the most useful ways to manage the number of employees you have is by <\/span><a href=\"https:\/\/factorialhr.com\/blog\/hr-solutions\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">using HR solutions software<\/span><\/a><span style=\"font-weight: 400;\">. 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. This is a great long-term solution for companies looking seriously to balance out their staffing numbers.\u00a0<\/span><\/p>\n<h3><strong>Specialist sub-contracting agency\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">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\u2019re unsure about hiring full-time workers in an unstable economic environment, you may want to consider these agencies. When you have a busy time, these highly skilled workers can stand in for your business, taking over some of the burdens from other workers.<\/span><\/p>\n<h3>Build a talent pool<\/h3>\n<p>An excellent way to avoid issues with understaffing and talent shortage is by creating an applicant <a href=\"https:\/\/factorialhr.com\/blog\/talent-pool\/\" target=\"_blank\" rel=\"noopener\">talent pool<\/a>.\u00a0 This can easily be done by saving the curriculums of all qualified candidates who apply for a position.\u00a0 Having a talent pool can be especially useful for startups and businesses that are growing quickly.\u00a0 You can reduce your cost to hire and <a href=\"https:\/\/factorialhr.com\/blog\/time-to-hire\/\" target=\"_blank\" rel=\"noopener\">time to hire<\/a> candidates for new positions.\u00a0 While it&#8217;s possible to create an applicant talent pool by saving resumes to a drive, it can be extremely time-consuming and chaotic.\u00a0 The most efficient way is to use an <a href=\"https:\/\/factorialhr.com\/applicant-tracking-system\" target=\"_blank\" rel=\"noopener\">applicant tracking system<\/a> to automatically stay on top of potential candidates for a position.<\/p>\n<h3><strong>Open communication<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">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\u2019t have enough to do, is through communication. Then, you will know how best to approach balancing out the situation.\u00a0<\/span><\/p>\n<p>These solutions should offer a way to help you find the right balance between overstaffing and understaffing within your company.<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/factorialhr.com\/features\" target=\"_blank\" rel=\"noopener noreferrer\">Better manage your HR processes with Factorial.<\/a><\/p>\n<p>Written by: <em>Charlotte Stace<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hiring and retaining the right employees is one of the biggest challenges both HR and employers have. As long as there is a business to run, staffing will be an ever-present challenge. Yet, finding the balance between having too few and too many employees can often be tricky. Too many workers can drastically increase your<a href=\"https:\/\/factorialhr.com\/blog\/understaffing-overstaffing-guide\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":136,"featured_media":48022,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[347],"tags":[],"class_list":["post-18024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-people-management"],"acf":{"topics":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Understaffing and Overstaffing - A Delicate Balance\u00a0 | Factorial<\/title>\n<meta name=\"description\" content=\"With the labor shortage, many teams are understaffed and overworked. Here&#039;s what will help you avoid both overstaffing and understaffing.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/factorialhr.com\/blog\/understaffing-overstaffing-guide\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Understaffing and Overstaffing - A Delicate Balance\u00a0\" \/>\n<meta property=\"og:description\" content=\"With the labor shortage, many teams are understaffed and overworked. 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