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Staffing Desion on Minimum Wage

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Submitted By Kereen
Words 402
Pages 2
Staffing Decision
An increase of minimum wage will affects the organization that has a large number of employees. It is because the staffing costs that employer has to pay each month is increasing. Recruitment or hiring a new employee seems undesirable as the minimum wage has increase. Implementation of strategy of staffing may help an organization to reduce the staffing cost. For instance, hiring an unskilled new employee may cause an increase of staffing cost to the organization to provide the training to the employee. As an employer, he or she would rather pursue a strategy of staffing to recruit internally and invest in internal training of unskilled employees to avoid the cost of external hiring because internal training will be the more cost effective strategy as the returned of the investment is reduces hiring costs for unskilled employee or skilled employee (Blatter et al., 2012). Besides, the organization could encourage their existing employees to work overtime due to the production or operation instead of hiring a new employee because the organization will be paid for employees overtime hours rather than pay an extra salary of each month, and can be save on other on other allowances and expenses.

Redesigning Job System
As the increase of minimum wage, Human Resource Department tends to redesign the job system where the employees are no longer work in their specialization with particular assignments and competence in their work individually, and identify an unnecessary activities which are no value added will be eliminated in order to reduce the cost in the organization. For instance, these employees will be given a project to be work in group in order to achieve the goal. In group, they are sharing of knowledge, skills and others. So, the organization may save it cost by provide training to the group instead of hiring a new employee at minimum wage to

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