Why Do Companies Hire Too Many People? | Josh Bersin

Talent Acquisition Workforce Planning

One indicator of ineffective workforce planning is the tendency to overhire, where organizations mistakenly employ more workers than needed. Overhiring results in increased costs, diminished productivity (as revenue per employee declines), and heightened pressure on managers and teams tasked with supporting a larger workforce. This supply and demand imbalance often leads to reactive measures, such as job cuts and hiring freezes, only to resume hiring during the next surge in demand. In this article, Josh Bersin shares five tactics for mitigating overhiring, one of which involves HR and recruiters engaging in strategic discussions with hiring managers who want to open a job requisition, asking questions such as: Should this hire be filled by an internal candidate? Should this job be full-time, or is it part-time and could be shared? Should this work be outsourced because it’s not strategic? Does this team have a high turnover? If so, should we discuss why this position is even open? I would add that organizations can unlock capacity within their current workforce by asking questions such as: How can AI be used to automate specific work tasks performed by workers, freeing up worker capacity for tasks better suited for humans? How can we remove inefficiencies and barriers to getting work done? How can we utilize internal talent marketplaces to flow internal talent to where we have work demand? Implementing these strategies can help organizations mitigate overhiring and strengthen workforce planning.