Being Understaffed Could Be Costing Your Company Money – Here’s Why!

Being Understaffed Could Be Costing Your Company Money – Here’s Why!

There are many negative effects companies experience from being understaffed, with one of the worst effects being high costs. When companies lack a sufficient workforce to meet workplace demands, productivity can suffer – which in turn directly affects the bottom line. Understanding why an understaffed workforce may be costing your company hundreds of thousands of dollars each year is the first step to preventing it.


First, employee burnout can become a huge issue surrounding an understaffed company. If you think your company can survive on a shoestring team, you’re sadly mistaken. Placing increased demands on a small number of employees can quickly lead to burnout. When burnout hits, your employees will be more likely to require sick days or even quit. And when staffing levels are cut suddenly, engagement and productivity will suffer, resulting in your company culture taking a downward spiral.

Along the lines of employee burnout, if your employees quit out of angst, you will be left scrambling to find replacement workers. This results in a spike in recruiting costs, as your hiring team must quickly recruit candidates to fill positions. Fast recruiting inevitably requires spending a significant amount of time and money on job posting advertisements, as well as career fairs, networking, and other forms of candidate outreach. Additionally, the greater employee turnover you have, the more you’ll need to spend in the training and onboarding of new hires. Avoiding burnout from the start will prevent the sudden exodus of workers, reducing the need to spend thousands of dollars on recruiting.

Is your business ready to save money?

If your company’s workforce is understaffed, it may be time for a strategic staffing partnership to help grow your team with temporary, seasonal, and temp-to-direct hires. Get in touch with The Liberty Group, with locations in major cities throughout the United States.