Joined: 05 Jul 2003
Posts: 83
| Posted: Wed May 24, 2006 6:33 am Post subject: Schedule Cuts...what you may not know | |
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This was news to me, so I thought I'd share with you all
We all know that there has been some seemingly drastic cuts in department schedules these days. And we're all wondering why they would do that to us in a busy time of year. I asked my ZM tonight what the deal is with that, and here's the basics of what he told me: At the beginning of a season, you bulk up on staff to help prepare for the busy season and so that you end up with a large selection of people to weed through in order to get a few great ones that you want to keep. When you do this, you are "borrowing" funds from what is alotted company wide for payroll by the shareholder's board. This allocation is based on everything from sales to margin to Inventory and store open hours, etc... Within a certain time period, whatever is determined by the shareholders, you have to essentially Pay Back the money you borrowed. This is done by cutting back in hours and letting go of the new people that turned out to be not so stellar. Once the funds are back where they came from, things can go back to normal for a while and hours should go back up to a comfortable level. With Revy, you could take from the payroll budget and pay it back anytime of year, which we usually did in late fall when things died down for a while because we didn't need the coverage as much. But with a publicly owned company, it's not that easy. Every penny must be accounted for and in it's proper place within a much shorter time period than with Independantly owned companies, because essentially you have more people to answer to. this is just an outline of the general idea, there are indeed a lot of finite details involved that we will probably never know about. But it's kind of reassuring to finally get a somewhat reasonable explanation for all of the cutbacks. |
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Joined: 21 Feb 2006
Posts: 52
Location: Yellow Brick Road
| Posted: Sat Jun 03, 2006 3:51 pm Post subject: | |
At least we are still up on Depot for staff during the day as Ive been told by ex staff from there we have much more staff and more knowing 
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