labour flexibility

Ability of the workforce to undertake different tasks. A company with high labour flexibility will be able to respond to changes in the market more quickly than less flexible competitors. Factors that affect labour flexibility include: the nature of the training undertaken by the workforce (the more general the training, the more easily employees will be able to switch roles; the structure of the company (whether the organization is structured tightly along functional lines restricting labour flexibility); and the attitude of the workforce (whether it is resistant to change).