What is an organization most likely to do when its demand for labour exceeds its supply?
A.
Implement a hiring freeze
B.
Lay off employees
C.
Hire more employees
D.
Allow for attrition
The Answer Is:
C
This question includes an explanation.
Explanation:
HRPA’s workforce planning model directs HR to compare forecast labour demand with forecast labour supply and choose strategies accordingly. When demand exceeds supply (a shortage), typical responses include external recruiting, overtime, internal development/advancement, and other acquisition tactics—i.e., hiring more employees. Hiring freezes, layoffs, and attrition are approaches for surpluses (supply exceeds demand).
Relevant HRPA references: HRPA Professional Competency Framework – Workforce Planning and Talent Management (gap analysis and response options for shortages vs. surpluses); HRPA Study Guide – Forecasting and Staffing Strategies.
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