The challenge of overstaffing or understaffing is one of the most frustrating challenges businesses face daily. Overstaffing means wasted labor costs and idle time. Understaffing means missed deadlines, stressed workers and poor customer experience.
A general labor staffing balance is key to operational efficiency. But how do you get the staffing levels just right?
The best way to get the right staffing levels is with Bacon and other online staffing platforms.
What Causes Overstaffing and Understaffing?
According to the American Staffing Association, nearly 60% of employers experience seasonal over- or under-hiring every year. Some causes of over and under staffing include relying on fixed staffing levels, lack of demand forecasting, and commitment to traditional temp agencies near me.
Relying on fixed staffing levels despite fluctuating demand can result in inefficient staffing. Fixed labor levels can’t scale up or down to meet real time demand which increases the chances of having the incorrect level of temp labor.
A lack of demand forecasting means businesses don’t know what staffing level they need. Without demand forecasting choosing staffing levels is a guessing game. Data is important to accurately forecast labor needs.
Lastly, being overly committed to traditional temp agencies near you can result in insufficient staffing levels. Traditional temporary labor near me is not flexible or reliable enough to provide warehouse temp staffing that meets real time demand.
Signs You May Be Overstaffed or Understaffed
Overstaffed
Signs that you may be overstaffed are workers standing around waiting for assignments. There seems to be less work and more workers. Another sign of overstaffing is having payroll and labor costs outpacing output.
Understaffed
Signs of being understaffed are being backlogged with orders or late deliveries. Workers having high turnover or burnout can be another sign. And frequent shift gaps or mandatory overtime being necessary to get jobs completed.
How to Find the Right Staffing Level (Step-by-Step)
There are 5 steps to finding the right staffing level, they are forecasting labor demand, assessing baseline staff, calculating the gap, adding flex labor, and using on-demand staffing.
- Forecast Labor Demand: Use seasonality, historical data, and upcoming orders in the next 3 months
- Assess Baseline Staff: Identify what full-time roles cover consistently
- Calculate the Gap: Determine what coverage is needed above baseline
- Add a Flex Layer: Include a 10–25% flexible temp labor buffer
- Use On-Demand Staffing: Adjust shift-by-shift with online staffing platforms
Build a Smarter, More Flexible Staffing Plan
Don’t stick to one method, a blend of full-time, part-time and on-demand labor is best for always having the right amount of staffing. Research the types of staffing services available to you and choose one that fits your needs.
Online staffing platforms are the best fix for over or under staffing because they allow businesses to find temp employees quickly and flexibly. Businesses post the shift they need filled and get access to temp workers near them.
Bacon, an online staffing platform, allows businesses to post shifts only when they need them. Unlike with a traditional labor agency near you, Bacon gives businesses complete control when finding temp staff for my business.
