In the grand scheme of things, understaffing may not seem that important. You can always adjust workflows and responsibilities to adapt as and when needed. But it’s often a silent killer—the first fallen domino that sends everything else tumbling.
The Real Impact of Running Short-Staffed
In early 2025, a survey of 1,000 US businesses found that 43% were short-staffed, and 38%struggled to find the employees they needed. It’s clear that the country is in the grip of a labor shortage, one precipitated by the “great resignation” that proceeded the COVID-19 pandemic.
The effects are being felt across various industries, but it seems to be hitting the hardest in the food service and hospitality sector, where businesses are regularly losing full-time workers and struggling to get new talent through the door.
Every business will suffer adverse effects from understaffing, but they are more noticeable in customer-facing industries, leading to issues such as:
It Creates a High-Stress Workplace
An understaffed business may operate at a reduced capacity. The fact that a company has 20% fewer staff than it needs, doesn’t mean it operates 20% less optimally than it otherwise would. Instead, existing staff members will be expected to fill the gaps. Their workload increases, and when that happens, cases of workplace stress inevitably follow.
Over three-quarters of the American workforce are thought to be dealing with workplace stress. Nearly a third of those feel emotionally exhausted, while a quarter feel unmotivated to work.
It Increases Staff Turnover
It Could Increase the Risk ofAccidents
When quality and care diminish,mistakes and oversights are more common and accidents may follow. A tired,stressed, and overworked workforce isn’t usually an attentive one, and with annual costs of $167 billion, workplace accidents can decimate a company’sbottom line.
It Affects Customer Satisfaction
Good service is the lifeblood of everyB2C company, but if there are fewer employees to check/pack orders, deal with inquiries, manage quality control, and perform other basic duties, the customer experience will suffer.
Whether it’s a hotel that can’t find staff to welcome guests and clean rooms or an e-commerce business that struggles to process orders, customers invariable get less value for money. Asa result, they are less likely to stay loyal and more likely to leave bad reviews.
Why Traditional Temp Agencies Aren't Always the Answer
Staffing agencies can seem like an easy and painless solution for hiring temporary staff, but they’re not without their downsides:
- They often focus on the cheapest placements and not the best.
- They can tie you into problematic contracts.
- They may charge fees that eat into your profits.
- They aren’t always transparent regarding their policies.
You could end up paying more and getting less, and that doesn’t include the headaches of dealing with the fallout of customer dissatisfaction or reputational damage.
The Economics of On-Demand Staffing: A Cost-Benefit Analysis
Hiring on-demand workers can help a short-staffed company fill essential roles without giving existing employees extra responsibilities or relying on staffing agencies.
Turning to on-demand workers provides various other benefits, as well:
Flexible Staffing Solutions
You can hire on-demand staff as and when needed. Whether you’re filling gaps to accommodate a sudden rush or scaling up to expand into new areas, you can hire quickly and efficiently.
If that rush ends or the expansion doesn’t work as anticipated, it’s much easier to scale back than it would be when hiring full-time employees or using a staffing agencies.
A Cost-Effective Approach
You’re only paying for labor when you need it, making on-demand staffing a very cost-effective approach. It suits budget-conscious businesses, and can keep staff costs down during uncertain times.
The Best Employees for the Job
With platforms like GravyWork, you can tap into a vast pool of temporary staff, finding talent to suit every skill set and every job. Hire people who are actually suited to the role and can help to push your business forward.
Rapid Hiring
It’s very easy to find suitable on-demand workers. You won’t lose time on recruitment drives and can focus on a streamlined hiring process that meets placement needs quickly and with minimum friction.
Higher Productivity
Got a big contract to fulfill? Need to try out a new line, test a new client base, or explore a new region? Temporary staff can help you to quickly meet those needs and get over the line. Your productivity increases, and it does so without the need for expensive long-term commitments.
Creating Your Emergency Staffing Plan
Even if you don’t need new staff right now, that might change in the future. So, prepare an emergency staffing plan to ensure you’re ready when the time comes:
- Identify shortfalls: Where is your business struggling? Where might you suffer shortages in the future? Identify areas where you’re short on employees with a particular skill set, as well as those you’ll need if/when you expand.
- Weigh up short-term vs long-term solutions: Can you afford to invest in a more long-term solution, or will temporary workers be enough to satisfy your current and future requirements?
- Anticipate skill requirements: The most sought-after skills will be the hardest to find. Consider where you will need high-skill workers in the future.
- Work with a trusted on-demand staffing platform: With GravyWork, you can get on-demand workers suited to any role. It’s a quick and painless way to hire the staff you need.
The Effects of Understaffing on Your Business
Companies across the country are struggling to hire the staff they need. Their existing employees are suffering, and their customers will surely follow. From there, it’s a matter of time before it hits their bottom line. If you find yourself in a similar situation, fill those employee gaps with temporary and flexible staffing solutions.
Use GravyWork to find skilled workers across various industries and skill sets, before hiring them quickly and watching as they get to work.
