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View Diary: Wendy's Cuts Employee Hours To Evade ObamaCare; Asking To Lose Business? (180 comments)

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  •  Is this even a viable business model (11+ / 0-)

    Or are these just very stupid owners?  Even ignoring PR concerns and blowback, it is not as if it isn't without its own costs.  I assume you'd have higher HR costs as you are managing more employees.  You'd have less employee happiness and efficiency and productivity[either requiring more total man-hours or a noticeable effect on the customer experience].  And lastly and perhaps most importantly you are going to have much higher employee turnover[people will only work there until they can find a full time job.  Though these types of businesses already have notorious high turnover that just seems like even more reason not to exacerbate the problem].  Every time you have to hire someone new you waste money finding and training them[and hell you may even be forced to pay higher wages to compensate].  This may be a tenable situation with current unemployment among prospective employees of 10-15%, but what happens if unemployment gets down to 7-9%?

    Has anyone actually run the numbers on this?

    •  Absolutely (3+ / 0-)
      Recommended by:
      Eyesbright, aitchdee, My Spin

      Spot on with all of your points. Cutting hours doesn't just mean just bringing new people off the street and handing them an apron - there's a bunch of overhead involved in employee turnover and maintaining a larger employee base, as you outline.

      "No children have ever meddled with the Republican Party and lived to tell about it." - Sideshow Bob

      by ThinkerT on Mon Jan 07, 2013 at 05:02:07 PM PST

      [ Parent ]

    •  Depends on when you run the numbers (0+ / 0-)

      When the economy is bad and people are having a difficult time finding any kind of job, the employer can screw the employees and the business can be profitable.

      But, when the economy is really humming and there are a shortage of employees, the formally low wage, screw the employee businesses will find that their business model will not be viable because wages will have to be higher and employees will remember the actions of those businesses during the difficult times and not work for those businesses.

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