What Would Be the Consequences of a Sharp Increase in Job Specialization?

Hyperspecialization is one way of describing the sharp increase in job specialization. According to the July 2011 "Harvard Business Review" magazine article "The Big Idea: The Age of Hyperspecialization," businesses benefit from job specialization in terms cost, speed and quality. Small businesses have to do everything possible to decrease expenses and increase profitability. However, organizations may experience some consequences that go beyond the job itself.

Recruiting and Hiring

Many small businesses are entrepreneurial start-ups that specialize in a niche industry. However, when it comes to recruiting and hiring new employees, a niche business can have trouble finding knowledgeable and qualified staff. One reason is because academic programs at colleges and universities may train graduates only in one specialty that doesn't meet the needs of businesses that are hiring. Another reason is that job descriptions about vacancies are so specific about the desired qualifications that job seekers might shy away from applying. To staff hard-to-fill positions, some small businesses may have to use sourcing services, professional recruiters skilled in finding highly specialized talent and matching qualified applicants with hiring companies.


The benefit of specialization for any business is that it can increase productivity, and quickly. Managers divide and delegate smaller tasks among a group of workers, similar to the modern automobile assembly line that uses many specialists to put together a single car. However, the consequence of specialization on small businesses is that it puts a greater burden on management to bring all of the smaller tasks together into one large product. This might mean that the business has to hire more managers to oversee projects and operations. These are additional overhead expenses that many small businesses cannot afford.


Small businesses that cannot find specific employees and managers may need to outsource those business functions to other organizations. The U.S. Bureau of Labor Statistics predicts that third-party consulting firms will see an increase in demand for specialized knowledge and expertise through 2018. For example, as small businesses go online to attract more customers, IT and social media consultants might be necessary to pull off the endeavor. "Outsourcing" is a dirty word in relation to periods of high unemployment and a dour economy; another consequence is that there is less local small business hiring that is vital to many local communities.

Labor Competition

A small business' specialization is generally localized. However, the labor force is nearly global. Skilled individuals can receive temporary work permits or obtain permanent citizenship in many developed countries around the world that have a great need for a skill set, such as scientists and engineers. In-demand job seekers can choose the compensation package that is most attractive. This creates a type of talent acquisition competition in the back office between businesses, large and small. Competition is healthy in the marketplace for consumers, but in terms of staffing, competition hurts small businesses who lose out on vital skilled labor.

Consumer Demand

Consumers create a demand for specialization, especially among small businesses. Suppose a large ethnic group from the Caribbean migrates and establishes a community in the United States. A restauranteur might open an eatery that specializes, for example, in Haitian cuisine. Businesses must recognize that consumer demand is always changing. People may suddenly take business elsewhere to experience other products and services. For instance, many non-native Americans are fascinated by the concept of super-sized hamburgers and fast-food restaurants.