There are a few reasons a company might choose to understaff - two I have seen play out:
1) as a short-term cost cutting method / if there are financial expectations to meet a hiring freeze helps you get there
2) to identify where there is waste in the system. Understaffing means that the most important tasks get done and/or employees rise to the occasion and do it all. It can be a lever to pull if you want to cut things out or push your employees to greater productivity (in the process probably losing a few who opt out of increased workload).
Both can add stress to the existing employee base.
One way to think about either scenario - are there places where you see waste and can make recommendations for efficiency / improvement? Are there steps or processes that you see as duplicative or not adding value to the end customers. If so, raise the ideas to your organization and help them meet whatever goal they are working towards!
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