Final answer:
The HR strategy in question likely refers to offshoring and outsourcing, which help companies achieve efficiency by hiring external labor. This contrasts with strategies that focus on internal retention of employees. Understanding the insider-outsider model can also be crucial for maintaining productivity and the successful incorporation of new hires.
Step-by-step explanation:
An HR strategy that focuses on creating efficiency through the utilization of talent from external labor markets often involves processes such as offshoring and outsourcing. Offshoring refers to the process of moving some of a company's operations overseas to access cheaper labor markets. On the other hand, outsourcing is the process of contracting outside firms or contractors, sometimes from abroad, to perform tasks that were traditionally done internally. This strategy is in contrast to approaches that prioritize internal employee retention and hiring practices that aim for minimal firing and maximal hiring relative to the organization's size.
The insider-outsider model of the labor force explains the dynamics between current employees (insiders) and new hires (outsiders). Insiders are essential for maintaining smooth operations and training new employees. If an organization were to cut wages, it could alienate these insiders, leading to reduced productivity and harm to the company's prospects. Furthermore, accessing the hidden job market effectively can also be a strategic element, as it requires tenacity and innovative search strategies, leading to less competition for job seekers.