HR surplus

Definition (1):

HR surplus occurs when the internal workforce supply exceeds the organization’s requirement or demand for personnel. It is also known as a skills surplus.

Definition (2):

HR surplus is the situation when the supply of required human resources is greater than the demand for required human resources by an organization. In other words, skills surplus takes place when the supply of required human resources surpasses the demand of required human resources in an organization.

An organization can deal with this skills surplus in the following ways:

  1. Attrition: It is the process of decreasing a skills surplus by naturally, letting the workforce size to decline.
  2. Job sharing: Job sharing takes place when 2 or more employees do the duties of a single full-time position.
  3. Hiring freeze: Hiring freeze is a prohibition on all types of external recruiting functions.

Use of the term in Sentences:

  • The company is facing an HR surplus and so, it has stopped all kinds of external recruitment activities.
  • Job sharing is a common way to handle an HR surplus within an organization and many organizations follow it.
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