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Walmart, others hiring temps and part-timers only

Walmart and other retailers are trending away from hiring full time employees and while Walmart disagrees, most believe that it is due to Obamacare restrictions.

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Walmart, others making a shift in hiring

Data from a recent Reuters survey shows that out of all retail companies that are hiring, the majority are only hiring temporary workers. The remaining companies that were interviewed responded saying that they are hiring a mix of temps, part-time and full-time workers, but none are hiring full-time workers only.

The shift towards hiring more temporary and part-time workers is pretty significant. Prior to 2013, only 1-2 percent of Walmart’s employees were temps, but now the number of temporary workers that Walmart hires is closer to 10 percent of its employee base. However, the retailer is not alone in its practices – many other companies are now turning to temp agencies to fill vacant positions, and critics think that the shift has to do with Obamacare and the increased insurance costs that come along with it.

Out of the 52 stores that responded to the Reuters survey, 27 answered that they were hiring temporary workers only.

Walmart CEO responds

Businesses that are cutting employee full-time hours argue that this method helps them scale back appropriately to meet business needs, and that it is not always necessary to have numerous full-time workers if business does not demand it. “Their hours flex by the needs of the business from time to time,” said Bill Simmons, CEO of Walmart Stores. If hours are busier on the weekends or during the evenings, businesses can call in part-time workers on an as needed basis, and then cut hours when things slow down.

Company spokesman David Tovar says that there is no discrepancy between the pay rates of temp and non-temp employees, and that Walmart’s temporary workers are paid the same starting pay as other workers. The shift to more part-time and temporary workers allows businesses to cut labor costs, but this makes it more difficult for employees to take care of their expenses with less paid hours.

This trend away from full-time hiring, coupled with the fact that employees will likely have to cover their healthcare costs out of pocket, with no assistance from their employer unless they are working more than 30 hours per week, just adds to that financial struggle.

Destiny Bennett is a journalist who has earned double communications' degrees in Journalism and Public Relations, as well as a certification in Business from The University of Texas at Austin. She has written stories for AustinWoman Magazine as well as various University of Texas publications and enjoys the art of telling a story. Her interests include finance, technology, social media...and watching HGTV religiously.

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1 Comment

1 Comment

  1. Charity Kountz

    June 24, 2013 at 2:47 pm

    It’s a sad truth but the employment system that provided benefits to employees is going the way of the dinosaur. Get used to paying for and finding your own insurance because that’s what’s coming.

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Business News

Better.com CEO fires nearly 900 folks over Zoom, right before the holidays

(NEWS) Better.com CEO, Vishal Garg is no stranger to controversy, but now he emotionlessly laid off 900 employees, effective immediately, via Zoom.

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Better.com CEO Garg

The ironically named website, Better.com, is a mortgage originator with a 4 Billion dollar valuation. Better.com CEO, Vishal Garg is no stranger to controversy not only for alleged fraudulent activities at two previous business ventures and for allegedly misappropriating tens of millions of dollars, but also for the mistreatment of his employees. His now-infamous email, which was leaked by Forbes where he berated his staff, calling them “Dumb Dolphins” and claimed they were “embarrassing him”. One of his “most loyal lieutenants” had to be placed on administrative leave for, surprise-surprise, bullying.

Once again, Garg is making headlines for the mistreatment of his employees. He emotionlessly laid off 900 employees, effective immediately, via a Zoom call. Garg cites “stealing from co-workers and customers by only working two hours per week the as a reason for the mass lay off, claiming that some of his staff only worked two hours per week. What is important to remember, however, is that much of his staff are comprised of underwriters, who are capped at a certain number of files per day, and once they have completed those files, they cannot work again until the next day. This obviously means that “productivity” would look very different for underwriters as opposed to other members of staff.

He also laid off the entire diversity, equity, and inclusion recruiting team, showing what values are actually important to him, and apparently, it is not diversity and inclusion. He claims that Human Resources will be in touch with the recently laid off staff about severance, however, it is unclear what their severance packages will look like. To make matters worse this mass firing occurred just weeks before Christmas. Better.com recently became publicly traded and is prepping to end the year with more than a one BILLION dollar balance sheet.

To treat your employees so callously, and with no regard is totally unacceptable, and the common practice of treating your staff as commodities is becoming increasingly more intolerable. This behavior however is unfortunately not uncommon among CEOs, with an estimated 4%-12% of ALL CEOs exhibiting psychopathic traits, a statistic I was hesitant to believe prior to learning about Garg. And if you feel like you’ve been wrongfully terminated, check out our article to find the best next steps. 

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Business News

Toys R Us is coming back with a vengeance after a rough bankruptcy

(NEWS) Toys R Us is opening their newest store complete with a 2-story slide and ice cream parlor, as well as an exclusive partnership with Macy’s.

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Millennials rejoice!

Toys R Us is back and better than ever. The toy giant filed for bankruptcy in 2017, which resulted in many nostalgic adults lamenting the loss of their favorite childhood toy store. Not only is Toys R US opening up a new 20,000 square foot location inside New Jersey’s Dream Mall, which will boast a two-story slide and an ice cream parlor, they are also partnering with Macy’s to have products available in 400 stores across the United States, as well as maintaining their presence abroad and online.

This store will be the first Toys R Us owned by WHP Global, who bought a controlling stake this year, but also the only store in the United States. Between big box retailers and one-click ordering with practically instantaneous shipping, many brick-and-mortar retailers just can’t compete. If that wasn’t challenging enough, many businesses face ever-shifting consumer demands, a dragging economy, and a global pandemic, making maintaining brick and mortar stores and businesses, even large ones, incredibly difficult.

Due to the Coronavirus pandemic, many businesses including JC Penney, J. Crew, and Neiman Marcus have faced the same fate and had to declare bankruptcy. However, bankruptcy is rarely the end for many companies. For companies, bankruptcy can mean many things, from reorganization to liquidation, and in some cases other companies get an opportunity to purchase these businesses, meaning consumers may see their favorite businesses return. Other companies choose to completely eliminate their brick and mortar stores entirely and return solely online.

Many stores and businesses are shifting their offerings, creating limited-edition offerings, and going to great lengths to stay in hopes to compete and stay relevant. For example, PetSmart is targeting pet parents this holiday season by offering matching, customizable pet and human sweaters, and holiday pet portraits. In keeping with the “ugly” holiday sweater craze, Microsoft created and sold out a minesweeper “ugly” sweater. Proactiv, which is a famous skincare brand known for its acne healing effects, is rebranding as Alcheeme and is expanding its product lines to offer solutions to many common skincare issues, including eczema, rosacea. And the Container Store is partnering with vendors such as Circuit, The Home Edit, and Blueland. Their Chief Merchandising Officer, John Gehre, said “Sustainability and the support of small businesses are not only priorities for our company, but our customers, too.”

Businesses are attempting to keep up with the needs and interests of the consumer in many creative and well-researched ways during one of the most difficult times for businesses in history

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Business News

Tis the season for employment scams – here’s what to look out for

(BUSINESS NEWS) Desperate times call for desperate measures. Seasonal employment scams are back on the menu and here’s how you can avoid them.

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A serious man considers a clipboard in potential employment scams.

With the sheer amount of desperation surrounding the holidays, employment scams typically have a resurgence during this season. Thanks to the Better Business Bureau, there are some clear warning signs that can help you spot and avoid seasonal scams this year.

The typical crux of any employment scam revolves around a prospective employee’s willingness to pay for something upfront, be it training or some other kind of quasi-justifiable item (e.g., a uniform). However, other iterations of the scam actually involve an “employer” overpaying for something at the onset—albeit with a fake check—and then asking the recipient to wire “back” the extra money.

Either way, these scams can leave you jobless and with less money than you initially had, so here are some things for which you should watch out.

Firstly, employers shouldn’t ever charge you before hiring you. Some industries do require employees to make small purchases on their own dime (i.e., the aforementioned uniform), but payroll will usually deduct the cost of these materials from the employee’s first paycheck—not require payment upfront.

As a general rule, it’s probably best to avoid companies that charge you at all. Aramark, for example, is known for requiring employees to buy company clothes—and they’re no peach to work with. But desperate times may warrant an exception in this regard.

It’s also to your benefit to avoid postings that boast an “interview-free” experience. Put simply, no one is hiring sans an interview unless it’s nepotism or a scam. If you aren’t related to the poster, that doesn’t leave much up for interpretation. Similarly, advertising a large sum of money for disproportionately low amounts of work is a pretty big warning sign.

Finally, watch out for jobs that ask for a work sample before hiring. While this is common for internships, most entry-level positions and beyond aren’t going to require you to complete a project for free before determining whether or not you’re good for the job. At best, this is a tactic to get free work from you; at worst, your application information can be stolen.

It’s sad to think that people would stoop to the level of scamming others amidst the dumpster fire of a year it’s been, but if you avoid these red flags, you should be able to keep yourself safe during this holiday season.

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