Demerits of insufficient labour in an Organization

Sushanta Das
4 min readOct 7, 2021


One significant reason why there might be a shortage of skilled labor in an organization is the growing technology in the world. Not every employee is educated or skilled enough to leverage the digitalized technological advancements, especially in big enterprises.

However, it doesn’t mean that the companies have swept them out completely. According to recent reports, a growing number of companies now believe in providing business skills training courses to their potential employees to boost productivity.

But today’s article is more about the demerits of insufficient labor in an organization. In other words, it’s the same when there is a shortage of skilled employees in a company affecting organizational performance management.

Dissatisfactory Work Results

When you have fewer employees, and on top of that, unskilled and untrained personalities are included in the team, it undoubtedly hints towards the negative reputation of the organization. The right skillsets can bring out the inner confidence and morale of your employees. Without this, when the employees are handling projects, they are sure to cause faults and damages to your investments indirectly.

Unskilled employees often also slow down the completion of tasks, hampering various aspects such as manufacturing delay, customer service outrage, poor organizational performance management, failing market needs, etc.

Extra Training Investments

While it is true that well-established companies invest in training their employees to boost their business skills and productivity, but many small-scale industries wouldn’t do that due to lack of capital or low returns. Training employees may require investments in outside educational centers. Starting from tuition fees to transportation fees, everything needs to be invested in such decisions.

Although most business strategy planning includes employee training and development, it is possible only when the business is running well and greatly established in the market with a high reputation and brand awareness.

Unwanted Safety Threats

When an employee is unaware of the right precautions and operational practices, he might end up doing something that might be hazardous to the company. Those who aren’t skilled enough to handle equipment might lead to huge losses in cost, supply, manufacturing goods, etc. That, in turn, would start creating a bad reputation in the market.

A professional or skilled newbie would be aware of company policy, terms and conditions, safety measures, crisis management precautions. But it is quite a task to maintain various operations at a time, especially when an employee is completely unaware of what he needs to do in his workplace.

Lesser Productivity

It is certain that when there’s a shortage of skilled workforce, a company will face low productivity with less profitable returns. After an in-depth business intelligence analysis on competitors, customers, and the market, several marketing strategies are induced. These strategies are formulated to bring more productivity and gain high results.

But when the company lacks the required workforce, it is impossible to expect high ROIs since those employees would not value the emergency of project completions.

Poor Soft Skills

Interpersonal skills have profound meaning in an employee. With just the presence of excellent soft skills, employees have a chance to outshine their competitors and outweigh any negative characteristics. Poor interpersonal skills are often a reason for a low level of confidence, inferiority, uncomfortably in a workplace.

FOr instance, communication is considered to be a strong skill in every employee. With excellent communication power, you can conquer the world in your fist. Whether you are a leader leading a team of leadership and management or a mere employee, with good vocab and communication, you can win the hearts of people around you and influence them towards a better future.

Thus lack of soft skills is a direct no when grabbing opportunities.

High Turnovers

Companies that focus on recruiting unskilled employees are after low-wage salaries. It is not wrong to say that organizations that have just begun their entrepreneurial journey have low funding options, therefore hiring interns or low-wage employees to complete their tasks. But little do they understand that these strategies are always short-term.

No employees themselves would want to work in companies that offer minimalist salaries. They either stay for gaining experience and leaving when better opportunities knock on their door. Or they would go halfway and join corporate training institutes to boost their skills.


That said, by now, you’ve probably understood that insufficient labor can slow down your business to great length. Quality of work will decrease for sure, depicting a bad rep of the company and market shutdown. With such cases reported from past events, especially from the transportation industries, companies now are more than cautious in recruiting skilled forces more than just bookworms.

However, despite the demerits of inefficient employees, today’s advancing career is allowing youths to participate in various campaigns and training courses to gain a good amount of knowledge in the business world. One such institute is Expert Mind Solutions, which provides both company consulting and business skills training courses to uplift employee careers and business growth.



Sushanta Das

I am a blogger and like to write blogs.