In the ongoing move towards a gig economy, companies have modified their talent recruitment norms. They are now hiring a mix of temporary workers, to ensure increased flexibility. This trend though comes with its set of complications. A study found out that increasing the pool of freelancers from zero to the optimal level, increases productivity, but declines soon afterwards. This is because of the corporate training costs associated with the constant turnover of part- time employees. Companies that are seeking to develop human capital, are incurring a hidden cost in their drive to push hiring flexibility. Different combos of staff contracts also have a profound impact on the final performance. Work patterns also get affected by a constantly revolving door.

Source:https://www.strategy-business.com/blog/The-hidden-perils-of-temp-turnover?gko=25d78

Uploaded Date:14 August 2019