Flexible workforces Enables business to respond quickly to changing external environment Enables to reduce or increase capacity quickly Helps businesses to manage labour costs effectively

The Shamrock The core – permanent employees, vital resources, well paid. The contractual fringe – independent contractors, used for expertise in various fields, eg computing, not on permanent payroll Contingent workforce – part-time, temps, seasonal workforce.

Other examples of flexible labour: Outsourcing – using sources outside the business to undertake functions that used to be done internally by a section of the business itself. Homeworking/teleworking – people working from home through use of ICT.

Drawbacks of flexible workforce Dependency on outside agencies (if outsourcing etc..) Peripheral workers could be less motivated than core workers Skills lost which may have been developed through permanent recruitment and retention.