Sunday, June 5, 2016

Rethinking the full-time versus part-time equation

Today 27m Americans are working part-time and 6.430m of them would prefer to have full-time jobs.  The latter number is only slightly smaller than the number of unemployed persons (7.436m).

An employer thinking about whether to hire full-time or part-time help has to consider the following factors:

  1. Differences in compensation cost per hour: full-time workers must receive health insurance and usually receive other employee benefits as well, whereas part-time workers typically just receive hourly wages.  Also, hourly wages in part-time jobs tend to be lower than in full-time jobs.  Advantage: part-time.
  2. Costs of hiring and training workers: It takes twice as much effort and time to find and develop two part-time workers as it does for one full-time worker.  Also, turnover is much higher for part-time workers, so that means even larger hiring and training costs.  Advantage: full-time.  
A recent WSJ article shows that some companies are rethinking this tradeoff and hiring more full-time workers.  The Sheetz convenience store chain found that 83% of its part-time help left within a year, much lower than the 25% of its full-time hourly help.  Sheetz also finds its full-time workers are more committed to customer service.  Buffalo Wings & Rings finds that full-timers ring up more sales and have lower rates of absenteeism.  

There is a simple economics lesson here:  you cannot just focus on cost comparisons; you also need to think about productivity.  As the unemployment rate keeps getting lower and more individuals drop out of the labor force, expect to see more companies calling up Sheetz's CEO.  

1 comment:

  1. Best Place To Get A Solution To Your Financial Problems (Lexieloancompany@yahoo.com)!!!

    My Name is Nicole Marie, I live in USA and life is worth living comfortably for me and my family now and i really have never seen goodness shown to me this much in my life, As i am a struggling mum with two kids and i have been going through a serious problem as my husband encountered a terrible accident last two weeks, and the doctors stated that he needs to undergo a delicate surgery for him to be able to walk again and i could not afford the bills for his surgery then i went to the bank for a loan and they turn me down stating that i have no credit card, from there i ran to my father and he was not able to help me, then when i was browsing through yahoo answers i came across a God fearing man (Mr Martinez Lexie) who provides loans at an affordable interest rate and i have been hearing about so many scams on the Internet mostly Africa, but at this my desperate situation, i had no choice than to give it an attempt due to the fact that the company is from United State of America, and surprisingly it was all like a dream, i received a loan of $82,000.00 USD and i payed for my husband surgery and thank GOD today he is ok and can walk, my family is happy and i said to myself that i will shout to the world the wonders this great and God fearing Man Mr Martinez Lexie did for me and my family; so if anyone is in genuine and serious need of a loan do contact this GOD fearing man via Email: ( Lexieloancompany@yahoo.com ) or through the Company website: http://lexieloans.bravesites.com OR text: +18168926958 thanks

    ReplyDelete