Flexible staffing models and workplace practices

Deciding Whether to Use Flexible Staffing

Kaiser Manufacturing has a big decision in front of it. As a specialty implement manufacturer for the agricultural industry, the company has been in business for 50 years. To date, they have always used full-time, permanent employees and have found it to attract and retain the best employees possible.

However, times are changing. Flat sales and increasing human resource costs have coupled with significant fluctuations in production demands. As such, Kaiser is now considering the possibility of using flexible staffing. They will need some additional information, though, to facilitate the decision making process.

First, Kaiser needs to determine whether their current production fluctuations are merely a temporary trend, or whether it is more permanent. If the fluctuations are likely to continue, for the foreseeable future, this makes flexible staffing more attractive. Second, a cost comparison needs to be done, perhaps over the previous 12 months, showing what would have been saved if they had used flexible staffing. It is possible that the savings are not as great as anticipated, and the employee loyalty they will lose, in using temporary staffing, is not worth the small cost savings.

Productivity issues must be addressed. Temporary staffing, even those who have the experience specific to Kaiser's organization, will have a lag time in reaching maximum production levels as they enter the organization. In addition, productivity for temporary employees, with little to no loyalty to the company, is typically lower than permanent employees.

Lastly, other options need to be considered. From the case study, it appears that FSS is suggesting a complete turnover of all staffing. Perhaps, it would be best if Kaiser sought to retain a core group of workers to meet minimum production requirements, and hired out temporary workers for the remainder, with an incentive that if they work hard and a permanent position opens, they will be first to be considered.