The critical analysis of temporary staff hiring & firing, depending on demand is given below :
Explanation:
Hiring & firing personnel, during periods of peak demand & periods of lower demand respectively - can have many undermentioned advantages & disadvantages :
Advantages :
Fulfilment of consumer's demand in high demand periods.
Cost saving during low demand periods
Highly suitable for seasonal industries, with highly fluctuating demand.
Temporary staff is cheaper for companies, it is to be availed with less perks, social security etc
Disadvantages :
Incurring high temporary recruitment cost again & again
Consistency & Quality of product or service might be compromised, as the labour indulged is fluctuating so much
Employees might feel lack of job security & hence not associate belongingness with their job, company. It can reduce their incentive to work hard towards organisation objectives
Prospective employees & hiring intermediaries might build a bad image of the company as an employer. It might create staff finding difficulties, when needed later.