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Wednesday, May 26, 2021

Business can adapt by looking to the past.

WHO SAYS YOU MUST BE OPEN 7 DAYS 24 HRS A DAY?

TIME TO FOCUS ON EFFICIENCY


When I was growing up, stores were not open on Sundays in Pennsylvania until the late 1960's. Most stores, including gas stations, closed around 6 pm. except on Thursday nights when they remained open until 9 or 10.  Banks were usually open from 9 to 3 with one extended evening. That 's were the phrase "bankers hours" came from. Auto dealers are still not open on Sunday by a mutual agreement of the big dealers, which actually is a form of collusion that disadvantages small or part time dealers. 

No one is suggesting that hours should be dictated by some government edict or law, but business should take this opportunity of worker shortages and material shortages to evaluate their business practices. It would not take a lot of effort to discover a business's peak time and day slots. I have been in some 24/7 stores that are likely not showing a profit during much of that extended time. Also late open hours increase the risk of criminal behaviour and risk to your employee's. 

So what if all the convenience and gas stations began closing from 7PM to 6AM. Do you think that any loss of business would not be offset by a reduction in costs? People would still need to buy the same amount of gas, they would just have to adjust to the open hours. The idea is, would they all be better off to run a very efficient operation that could focus on maximizing sales and service during their shortened hours. 

With the shortage of good workers, reliable and responsible employee's are being forced to cover for all the no shows, call offs and the just plain shortages of workers. Many good workers are feeling the strain of working 7 days and extended hours and soon they will start to loose their ability to do a good job. So it might be time to make major adjustments and focus on becoming more efficient in shorter hours and save your workers for the long haul. Reward and take care of your good workers.

Many are hoping that all of a sudden there will be an appearance of more reliable workers. This is likely just a false hope. The employment situation will most likely not improve until after September, when the extended unemployment benefits will expire. That may even be an optimistic hope as more benefits will be starting in the coming month with a $300 payment per month for each child. This in effect will make up for the end of supplemental unemployment payment. Then unemployment benefits may be extended even after September. So, rather than hoping things will get better, it might be good policy to take action now, to save the workers you have now.

There is always the possibility that benefits will continue until the next election when the talking point will be, "vote for us " or the other side will take away your benefits.







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