We welcome you to JobBank USA and hope your job hunting experience
is a pleasant one. We hope you find our resources useful.
June 14, 2009
Forty years ago when we had a recession and it began to end, companies needed significant time to ramp up production and needed to re-hire employees quickly. There were not a lot of options for temporary workers nor were there complex computer system models available for labor forecasting to the sophistication of today's Enterprise Management Systems. Overtime was expensive and hard to manage and people were not used to doing "temporary work" except for seasonal type employment...
In today's world where we have computer systems interconnecting companies and continents like never before there are so many options to companies before needing to hire permanent full-time employees that were not around 40 years ago...some of these include:
1. A vast number of companies that specialize in providing essentially "just-in-time" workforce with skills matched perfectly to the companies' needs at a reasonable cost. With complex skills requirements databases and worker skills databased and powerful software to match the skills with the need, these workers are not hard to find thereby needing much less time to ramp up production.
2. Outsourcing of overflow capacity has become much simpler and cost effective as systems bridge the gap between supply chain participants allowing companies to shift production quickly between elements in the supply chain without adding additional staff. This outsourcing can either be domestic or off-shore outsourcing.
3. Sophisticated HRMS systems that manage the yeild and profitability of every worker and project when the economic benefit of hiring a permanent employee is warranted.
4. Flexible work arrangements are becomming more common, lowering the need for full-time permanent employees. These include paying for labor on a contract basis, hourly work based on demand and even in some industries having temporary workers reverse bid for work within the company...this has been employed in the airlines where flight attendants "bid" for certain flights...
5. Job sharing arrangements where a full-time position is not needed a portion of a resource is purchased by the company for that role.
Technology and systems have definitely had an effect on hiring full-time permanent employees as a last resort instead of a first or second option...
I am not opining on whether this is good or bad...but it is reality based...
Email This Page!