Final answer:
An organization can manage a talent surplus by using overtime as a temporary solution to handle increased workload without incurring hiring and training costs, especially during periods of economic uncertainty.
Step-by-step explanation:
Can an organization manage a talent surplus by having its existing employees work overtime? In the face of a recession, firms may face a decrease in demand for their products or services. Rather than immediately laying off workers, which carries the risk of losing skilled labor and later incurring costs for hiring and training, companies often choose to retain their employees.
As a recession ends and business starts to improve, uncertainty may still exist regarding the stability of demand. To avoid the premature costs associated with expanding the workforce, firms may opt for having existing employees work overtime to handle the increased workload. This strategy allows firms to maintain productivity and profit without the immediate need to expand the labor force. The insider-outsider model points to the value of current 'insiders' in the workforce, emphasizing the importance of retaining these employees during fluctuating economic conditions.
Therefore, yes, an organization can manage a talent surplus by having its existing employees work overtime as a temporary solution to prevent the costs associated with hiring and training new employees while demand is uncertain.