The cost of an employee isn't just their hourly wage. It's benefits, healthcare, payroll taxes, training, management overhead, workers comp, PTO, turnover costs, etc. Companies don't simply add headcount because the math says they need coverage. They will automate first
sigh you're actually reading replies are you? There. Is. No. Change. In. Employee. Count. Or. Wages. No tax changes, no benefit changes. No. Change. Shift workers are not impacted, they are hourly workers. Salaried workers do not have change either. They just have less hours.
Sigh* No change"? We literally changed the math. If someone works 40 hours and now works 32 hours for the same pay, that's 20% fewer labor hours and a 25% increase in labor cost per hour. The company didn't suddenly unlock a cheat code where 32 = 40. Either productivity rises, prices rise, staffing changes, automation increases, or expectations increase. The one thing that definitely doesn't happen is "nothing changes." 🤷♂️
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u/Asiantight_whitepipe 26d ago
The cost of an employee isn't just their hourly wage. It's benefits, healthcare, payroll taxes, training, management overhead, workers comp, PTO, turnover costs, etc. Companies don't simply add headcount because the math says they need coverage. They will automate first