Why Companies Don’t Just Hire Twice as Many People at Half the Hours

Often, the idea of doubling the workforce while cutting their hours in half is suggested. However, such a strategy overlooks several critical aspects of modern business operations. Let's explore why companies don't just hire twice as many people at half the hours and highlight the underlying challenges and costs involved.

The Current Reality in Retail

The notion of doubling the workforce while halving their hours might seem appealing at first glance. In reality, many large companies, especially in the retail sector, are already implementing this strategy. A significant shift can be seen in the U.S. retail market from the 1980s to today. Large retailers now heavily rely on part-time workers to fulfill their staffing needs. This tactic allows them to avoid the hefty costs associated with providing benefits, especially for flexible, non-traditional working hours.

During the weekdays, many retail stores operate 9-5, but the work needs to be covered outside of these hours. Part-time workers are used for extended evening and weekend hours. This system leaves a small pool of full-time workers who often hold supervisory roles. Almost all customer-facing staff are part-timers. This approach is not only cost-effective for employers but also stems from the high labor turnover and flexible working hours required in retail.

The Recruitment and Training Process

Although this staffing model can be cost-effective, it also poses significant challenges. First and foremost, we place considerable effort into ensuring that the right people are hired. Given the sensitive nature of the roles and the potential for mistakes, the prioritization of hiring the correct individuals far outweighs the effort required to filter them out. We are meticulously selective about who we bring on board, especially considering the access to sensitive information and the potential consequences of wrong hiring decisions.

Once the right candidates are recruited, a comprehensive training process is initiated. This includes an intensive initial phase to bring employees up to speed, followed by periods of supervised work. The goal is to fully prepare employees before they are handed the responsibility to handle tasks independently. Additional training is provided when necessary, such as when new products or services are introduced. This structured training, while vital, comes at a cost, both in terms of time and financial resources.

Moreover, employees learn through experience, which further adds to the process and impact of recruitment and training. This continuous learning and adaptation are essential for the business to thrive and remain competitive. If we were to hire twice as many people at half the hours, we would need to invest double the effort in recruitment, filtering, and training. We would also need to wait much longer for employees to gain the necessary experience. Thus, the initial savings would be quickly offset by a loss in productivity and effectiveness.

Employee Costs

Another significant factor that mitigates the appeal of hiring more people for shorter hours is the high cost of employing staff. The fully-loaded cost of an employee goes beyond just their hourly pay. It includes various expenses such as:

Buildings IT Holidays Sick pay Insurance Tax Pensions Contributions Recruitment costs

These additional costs significantly increase the overall expense of maintaining a workforce. The reality is that hiring more people for shorter hours might reduce the number of hours worked, but the associated costs and inefficiencies could negate the benefits.

Therefore, while the idea of hiring more people for shorter hours might seem like a straightforward solution, it requires careful consideration of the broader implications, including recruitment, training, and the overall cost of employing staff. The current staffing models, such as part-time employment in retail, demonstrate a more balanced approach to addressing the needs of businesses while keeping costs under control.