NUMERICAL FLEXIBILITY

The measures taken by firms to adjust the number of persons required to complete the work necessary to meet demand.

"Organizational flexibility itself can come in many forms. It can relate to the establishment's ability to vary its workforce by hiring and firing, by altering hours of work, by using non standard employees, or by subcontracting or outsourcing (i.e., numerical flexibility)."
(Human Resources Development Canada, Innovative Workplaces: Lessons Learned, 1999, visited 2010-11-11)

"Numerical flexibility, which largely overlaps with external flexibility, refers to adjustments in the number of persons employed, downsizing and outsourcing where necessary."
(International Labour Organization (ILO), Impact of Flexible Labour Market Arrangements in the Machinery Electrical and Electronic Industries, 1998, visited 2011-11-25)

"This type of flexibility is constrained by rights to redundancy benefits and protection against unfair treatment and, in some countries, by requirements to consult, negotiate or gain legal approval to restructure. Excessive restrictions on this type of flexibility caused by creating high ‘costs of exit' can lead to labour market distortions, such as the extensive use of fixed-term temporary contracts, or encourage firms to minimize labour and grow in a highly capital-intensive fashion. Conversely, excessive numerical flexibility might undermine workers' motivation and willingness to participate, which are so important for modern firms, and result in inadequate training because of high labour turnover rates. It may also increase stress and exacerbate other problems related to employment (and income) instability."
(International Labour Organization (ILO), Impact of Flexible Labour Market Arrangements in the Machinery Electrical and Electronic Industries, 1998, visited 2011-11-25)

Numerical flexibility" enables a firm to adjust rapidly to changing levels of demand by increasing or decreasing the hours worked by its employees (often referred to as "flexibility of time"), or by using subcontractors to undertake work.
(Eurofound, Flexibility, 2005, visited 2011-05-05)