What does restricting hiring refer to in the context of workforce surplus?

Restricting hiring in the context of workforce surplus refers to the practice of not replacing employees who leave the organization. When a company has a surplus of employees—meaning it has more staff than it requires to meet its operational demands—it may choose to control its workforce size by adopting a strategy where it does not fill positions that become vacant due to resignations, retirements, or terminations.

This strategy allows the organization to reduce its overall headcount without resorting to layoffs, which can be more disruptive and detrimental to employee morale. By keeping the workforce stable while not actively recruiting to replace departed employees, the company can manage its labor costs effectively while gradually addressing the surplus. This approach also enables the organization to assess its needs more accurately, thereby ensuring that any future hiring aligns closely with strategic goals.

Other options provided, while potentially relevant to aspects of workforce management, do not directly reflect the concept of restricting hiring related to surplus. For instance, selectively hiring new employees focuses on bringing in talent when needed rather than managing existing employee levels, and increasing workloads among existing employees does not directly address hiring practices. Similarly, lowering recruitment budgets can be a tactic in response to a surplus, but it doesn’t capture the action of not replacing departing employees.