Whether it's Staples or anyone else, there are really only a few options for a company that is faced with higher taxes (here in the form of increased premiums) such as in this situation:
- pass the cost on to customers via higher prices
- cut back hours from full time to part time status with loss of benefits and overall pay
- fire people
- hire fewer people or halt hiring
Bigger companies can hold off on this and absorb the cost while smaller companies lose business and fold; after that the big companies can consolidate their market and apply the above freely. In some industries like paper/office supply like Staples there really is no room left to maneuver.
That you - and others - think those are the only options speaks volumes about the state of business in this country. Christ.
Hey I'm willing to be educated.
What's an example of another option?
Anyone else, any other options I'm missing?
If you really think that employee pay/benefits is the only overhead at this or any other business, you know nothing about how businesses work.
There are a hundred ways a business can cut costs or - and pay attention, because this is important -
increase their income. Businesses that screw with their employees hours to skirt this new law aren't doing it because they have no other options. These rich, overwhelmingly white, overwhelmingly Republican executives don't like Obama and don't like the law, so they're screwing with the employees. That's the bottom line here. It's not the first time, and it sure as hell won't be the last.
Again you're assuming they haven't done those things alread. I think we can assume that an operation the size of Staples is running pretty efficiently already. They wouldn't still be in existence with the likes of Amazon and Newegg and the like if they weren't. We're in a time when you can walk into a Staples, pull out your smartphone and scan the barcode on any item they have on the shelf and see if you can get it for $1 cheaper just down the street, or online.
How much do the executives make? I'll bet dollars to donuts that in 99% of these cases of companies screwing with the employees,
the executives haven't taken a pay cut.
They could also lease out floor space to a smaller, complimentary company that will increase foot traffic. They can
run promotions that encourage visitors - you know what I never hear? An ad campaign that says "You could shop online, or you could come get what you need right now. No waiting." They can move to smaller buildings.
Reduce the usage of electricity by swapping out bulbs or dimming lights. They could
close an hour earlier or open an hour later, depending on which hour has fewer customers. Sure, that would affect employees' hours, but not to the extent that they'd have to go from full time to part time. They can
partner with local groups like Boy Scouts or Girl Scouts to hold events. They could focus on things that Amazon can't provide, like in-store demonstrations and workshops.
If Staples is losing to Amazon it just might be that their business model can't work like it used to and they have to try new things - because I promise you, once they cut the employees hours? If they don't try those new things anyway, they'll be out of business.
But the executives won't suffer, that's guaranteed.