Flexible Workforces

• what is a flexible workforce?


  using permanent employees that carry out core tasks and peripheral workers that provide numerical and/or functional flexibility to allow a business to respond to changes in demand.
• what is numerical flexibility?


  the ability to flex the size of the workforce up or down
• what is functional flexibility?


  the ability to carry out the tasks that a workforce can do
• what is multiskilling?

  employees skills are enhanced so that they are able to carry out a range of different jobs
• what is outsourcing?

  contracting out certain business functions to another business
• what is part-time work?

  employing staff on contracts that are typically less than 30 hours per week. this can help to cut costs, however they can be asked to work extra
• what is temporary staff?

  these can either be part-time or full-time but are on a fixed term contact
• what are flexible hours?

  flexi-time: where employees work core hours but have freedom over when they start

  zero hour contract: where employees only work when the business actually needs them
• what is mobile working?

  the ability of an employee to carry out their job from their own home
• what is the first leaf of the shamrock organisation?

  • central core of qualified professionals
  • skills are critical to the businesses competitive advantage
• what is the second leaf of the shamrock organisation?

  • contactors who are professionals
  • usually self employed or work for a smaller organisation
  • contracted to work in non-core areas
  • paid a fee rather than a salary, little job security, no special benefits, often work from home
• what is the third leaf of the shamrock organisation?

  • temporary hires who are employed depending on the level of demand
  • may be zero hour contacts or seasonal
  • paid by the hour
• advantages of flexible workforces?

  • can reduce labour costs
  • improved customer service
  • can help with recruitment/retantion/motivation
• disadvantages of flexible workforces?

  • can be expensive
  • quality may deteriorate
  • communication can deterioarate
• advantages of multiskilling?

  • improved customer service
  • high labour productivity
  • reduced unit costs
  • increased motivation
  • reduce labour turnover
  • reduced disruption with absence
• disadvantages of multiskilling?

  • higher training costs
  • risk that the business can train someone for them to go work for a rival
  • workers can become demotivated if they are doing a skilled job for the same pay
• advantages of outsourcing?

  • cost savings
  • better quality
  • focuses on core activities
  • access to expertise
• disadvantages of outsourcing?

  • lack of control
  • increased power of suppliers
  • ethical concerns
  • cost
• when is a flexible workforce important?

  • if demand is volatile
  • want to minimise costs
  • when there is an economic downturn
  • facing a competitive labour market
  • all employees don't have to be in the same place