Approaches to Staffing

Hard HR:

• Treating staff as a cost

• Minimal pay - as low as they can to keep costs down

• Recruitment rather than training - reduces costs, external recruitment (people with the skills needed already)

• Minimum legal employment obligations

• Temporary contracts

Advantages:

• Lower costs - aids them in being more price competitive, helps establish high market share

• Quicker decision making

Disadvantages:

• Lower staff engagement (productivity, efficiency, motivation)

• Lower motivation leads to:

  • High absenteeism

  • Less efficient

  • Low quality products

  • Labour turnover

• Difficult to hire people and retain staff

• Reduces costs short term but increases them in the long term

Soft HR:

• Viewing staff as an asset

• Emphasis on retaining employees and developing the workforce

• Competitive pay for employees

• Generous fringe benefits

• Training opportunities

• Career progression

• Greater job security

• Investing in staff - internal recruitment, multiskilling etc

Advantages:

• Motivated staff

• More productive and efficient

• Innovation

• Intrapreneurship that the business can utilise

• Investment in staff lowers cost in the long run

Disadvantages:

• Less flexible in changes in demand