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Disposable Worker Essay

984 words - 4 pages

We live in a century of convenience, fluctuations and fast pace. When something is no longer suitable, our first reaction is to dispose of it or simply replace it. With the current economic fall, many are opting out of using more expensive products and switching to less quality products due to lower costs. Unfortunately, these common trends are now also being applied in business industries, where many companies and organizations continuously restructure their employee base by hiring disposable workers. This out with the old, in with the new mentality has become unavoidable, but it is not without consequences or concerns. Hired to assist companies in meeting business demands, disposable ...view middle of the document...

 The costs and benefits of each course of action are calculated and weighed. Emphasis is on cost-effectiveness, as the business must generate profits to survive.  William Bliss, President of Bliss & Associates, has a formula for calculating the cost of employee turnover. In The Advisor (isquare.com) he outlines a detailed list of considerations totaling over thirty-five separate cost items. The primary categories include: Costs Due to a Person Leaving, Recruitment Costs, Training Costs, Lost Productivity Costs, New Hire Costs, and Lost Sales Costs. The calculations reach an impressive 150% to 250% of annual salary, depending on the position. Terminating a $50,000 employee eventually costs a company $75,000 to $150,000 on replacing them. When a company hires a disposable worker, they are not faced with any of the above mentioned costs. “The whole purpose of bringing on workers who are employed by temporary staffing firms such as Manpower (MAN), Adecco (ADO), and Kelly Services is that they're easy to shuck off when unneeded” (businessweek.com) Companies are not required to pay for their health benefits, and frequently, the employees don’t even work long enough to establish an unemployment claim. From a strategic point of view, this is a significant reason as to why disposable workers are the new trend. They are eager to work and often times bring in fresh wisdom at a much lesser cost than a regular employee. Many of the more moving points in the article are all too familiar to me as an employee. It doesn't take much of an imagination to picture the stress of not knowing if you'll be working next week or having no benefits. As mentioned in the article, with the economy expanding again, and employers loath to add permanent workers, temp employment is one of the few sectors of the labor market that is growing rapidly. (businessweek.com) The companies that are hiring, are often focused strictly on temporary employees, whose temporary agencies charge a high premium on their pay for...

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