As a business owner I am sure you would agree that the success of your business heavily relies on the skills, dedication, and collective effort of your workforce. However, in today’s volatile and unpredictable economic landscape, it becomes crucial for smart business owners to adapt and implement strategies that enhance efficiency and resilience. One such strategy is labour hoarding.

Understanding Labour Hoarding:

Labour hoarding refers to the deliberate decision by you to retain more employees than strictly necessary to fulfil current operational needs.  Meaning you are building a surplus workforce to account for fluctuations in demand, market uncertainties, or unexpected disruptions. Instead of swiftly downsizing during slow periods, businesses that engage in labour hoarding retain a pool of skilled workers, ensuring they have the necessary human resources to respond to unforeseen events promptly.

How will this benefit you?

1. Enhanced Operational Agility: This means you are ready for any changes.  Whether it’s accommodating a surge in customer orders or addressing unforeseen challenges, having a skilled and readily available workforce allows for greater operational flexibility and responsiveness.
2. Reduced Recruitment and Training Costs: Constantly recruiting and training new employees can be time-consuming and expensive. Labour hoarding minimizes the need for frequent hiring and on boarding processes.
3. Improved Employee Morale and Loyalty: When employees feel that you invest in them and trust them.  
4. Risk Mitigation: Whenever there are an unexpected disruption, such as the recent flooding, economic downturns, or supply chain interruptions like some of you might be dealing with at the moment it can severely impact your business. Labour hoarding acts as a risk mitigation measure by providing a buffer of skilled employees who can step in during challenging times.
5. Competitive Advantage: Skilled professionals may prefer working for a company known for labour hoarding, as it offers a greater sense of stability and career growth opportunities.

As with any strategy, assessing the unique needs and dynamics of your business is essential. Careful planning, regular evaluation of workforce requirements, and clear communication with your team are key to successfully implementing and maximizing the benefits of labour hoarding.