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Benchmark: The Costs of Understaffing

Some statistics concerning the adverse effects of understaffing.

By Donna Fenn |  @donnafenn   | 
 

Almost 50% of recently surveyed companies reported that they are, to some degree, understaffed. They noted the following effects on their organizations:

Effects of being % of companies
understaffed reporting those effects
Increased stress 71%
Difficulty meeting schedules 40%
Decreased customer service 25%
Increased turnover 20%
Difficulty expanding 19%
Increased error rates 18%
No discernible impact 11%

Source: "Staffing Strategies Survey," 1995 Olsten Forum on Human Resources, Melville, N.Y.

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    • Donna Fenn

    Inc. contributing editor Donna Fenn is the author of Upstarts! How GenY Entrepreneurs are Rocking the World of Business and 8 Ways You Can Profit From Their Success (McGraw-Hill, 2009). Both this blog and the book examine the ways in which GenY is changing the entrepreneurial landscape with new approaches to starting, growing, and managing their companies. Learn more at http://www.upstartsrock.com/.


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