23/07/2026
Getting Your Staffing Mix Right
For most businesses, staffing is one of the largest operating expenses. Getting the balance right between permanent employees, part-time staff, casuals and contractors can have a significant impact on both profitability and productivity.
The right staffing mix isn't the same for every business. It changes depending on seasonal demand, economic conditions, business growth and advances in technology.
Seasonal Demand
Very few businesses experience consistent workloads throughout the year. Whether your busiest period is summer, winter or another seasonal peak, demand naturally fluctuates.
Annual leave can help absorb some of these changes, but many businesses benefit from having a flexible workforce that can adapt as workloads increase and decrease.
A combination of full-time employees, part-time employees, guaranteed hours agreements and casual workers can provide the flexibility needed to meet changing demand without overstaffing during quieter periods.
Economic Conditions
Economic conditions have a direct impact on staffing requirements. Changes in consumer spending, industry trends and market conditions may mean businesses need to review their workforce structure to remain sustainable. Making staffing decisions early often provides more options than waiting until financial pressure becomes overwhelming.
Regularly reviewing workforce requirements helps businesses remain agile and prepared for changing conditions.
The Age and Stage of Your Business
Staffing needs also change as a business grows. Businesses expanding into new markets or experiencing rapid growth often need additional employees before new revenue is fully established.
Likewise, when introducing new functions such as HR, marketing or senior management, it may make sense to engage an experienced contractor or fixed-term employee to establish systems and processes before transitioning the role into a permanent position.
Every staffing decision should consider both the immediate need and the long-term requirements of the business.
Technology is Changing the Workplace
Technology continues to reshape the way businesses operate. Artificial intelligence, automation and digital systems are changing how work is completed, allowing businesses to streamline administrative tasks and improve efficiency.
Rather than simply replacing jobs, technology presents opportunities to redesign roles, improve productivity and allow employees to focus on higher-value work.
Businesses that regularly review how technology can support their workforce are better positioned to remain competitive.
Choosing the Right Employment Option
When deciding how to fill a role, ask yourself:
✅ Is this an ongoing, permanent need?
✅ Is this a temporary increase in workload?
✅ Is specialist expertise required for a specific project?
Your answer will help determine whether a permanent employee, fixed-term employee, casual employee or contractor is the most appropriate solution.
Are Contractors Really More Expensive?
At first glance, contractors often appear more expensive because of their hourly rate. However, comparing hourly rates alone doesn't tell the full story.
Employees also incur costs such as annual leave, public holidays, sick leave, KiwiSaver contributions and time spent on non-productive activities.
Contractors are generally paid only for the work they complete and often bring specialist expertise that allows them to complete tasks more efficiently.
For example, an experienced HR consultant may prepare a disciplinary invitation in 15 minutes, while a manager with limited HR experience could spend over an hour completing the same task.
When comparing contractors with employees, consider the total annual cost and productivity rather than simply comparing hourly rates.
Need Help?
At HRToolkit, we've created practical resources to help New Zealand businesses recruit, employ and manage staff with confidence. Visit www.hrtoolkit.co.nz to access:
✅ Fill-in-the-gap HR documents and templates
✅ Complete HR toolkits
✅ Free video training
✅ Upcoming live webinars
✅ Practical HR advice and resources
For regular HR tips, employment updates and practical advice, follow HRToolkit on social media and stay up to date with the latest information to help your business succeed.