Staffing structure in simple words is the organization’s basic hierarchical arrangement. In a typical staffing structure, there are three main classifications. The first and topmost levels include the top management and the chief positions. The second includes the mid-management and officer levels. The third includes the low level or labor class.
Having a proper staffing structure in place is a key strategy for any company. The staffing structure decides who monitors whom. The staffing structure helps to create a hierarchical discipline so that employees know who is their go-to person, who will supervise and support them, who is their department head, whom to go to for escalations. This is the basic strategy that a company needs to get in place before further planning.
If we look at the staffing level closely we understand their classifications as follows:-
Top management- this includes Chairman, Vice President, Board of Directors, Chief Officers. Mid management includes General managers, regional managers, Senior managers, Assistant Vice Presidents. First-level management comes under mid-management and it includes senior officers, junior managers, supervisors, team leaders. Second-level management also comes under mid-management and it includes junior officers, freshers, representatives. Low-level management includes low-end jobs and labor class jobs.
As we can see above the major chunk of employment and staffing is needed in mid-level management. The main reason for companies to reduce their staffing levels is to reduce the number of employees. It is done to reduce their headcount. The other reason for reducing the staffing level is to combine the level of work done. So what is achieved by two employees can be done by one single employee. Basically, the work is consolidated in such cases.
The main reason for cutting down staffing levels is, it benefits the company, as it directly reduces their costs. Cost reduction means an increase in productivity. Cutting down staff levels also means an increase in ROI — return on investment. So what a company invests for staffing an employee, they are trying to maximize their returns. The other benefit of reducing staffing levels is to reduce their operational costs. A company could cut down their staffing levels if they are not able to achieve the desired productivity levels. A company also cuts the staffing levels to reorganize and change their operational structure.
We must understand that if a company is reducing its staffing levels, it doesn’t necessarily mean they are overstaffed. Often companies reduce their staffing levels because of poor management and less productivity. So as a company make sure you are having a strong and effective management set up. Reducing staffing levels is not the most effective way to increase your productivity, because it simply shows you are not able to manage the employee count well. It also shows that the entire hiring process was wasted. So if you need to reduce your staffing levels it is a wake-up call to improve your business.