Hiring cheap labor to neutralize losses


When the company is cutting down on expenses one silly move that the HR makes is to hire cheap labor. Cheap labor means the worker is new to the trade and more likely he is prone to make mistakes. Take for example a forklift operator with little experience, one miscue and a falling pallet will surely damage the goods. But some HR managers could justify the cheap labor by constant monitoring of the new workers.


It may not be wise to hire cheap labor when the company is losing because the quality of work my deteriorate and may further increase the losses. Perhaps an efficiency engineer can be consulted to improve the performance of the workers. I see that outsourcing is getting popular for this purpose.