Which strategy is recommended when a company faces a surplus of workers?

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Study for the UCF MAN3301 Exam 2. Explore comprehensive resources, flashcards, and multiple-choice questions with hints and explanations. Ace your Strategic Human Resource Management exam!

When a company faces a surplus of workers, implementing hiring freezes is a strategic choice aimed at managing labor costs and stabilizing the workforce. A hiring freeze helps to prevent additional employees from being brought on board, which can exacerbate the surplus situation. During times of surplus, companies often find themselves needing to balance their workforce with their current operational needs, and bringing in new employees could lead to further complications.

Instead of increasing the workforce, a hiring freeze allows a company to retain its existing employees while aligning staffing levels with actual business demands. This approach can help the organization avoid unnecessary expenditures associated with recruiting, onboarding, and training new hires. Moreover, it enables management to assess the situation more clearly and consider potential reallocation of resources, restructuring, or voluntary exit strategies that may be needed to balance the workforce effectively.

In contrast, the other options do not directly address the issue of surplus employees. Increasing marketing efforts could potentially drive more business but does not resolve the excess workforce. Enhancing employee benefits might improve morale among current employees but can also add to the financial burden during a surplus. Recruiting externally would further increase the number of employees, worsening the surplus situation. Therefore, the recommended strategy in such a scenario is to implement hiring freezes.