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The fact is that the summer is approaching and Arthur does not have a reliable pool of workers (replacement or otherwise) to run his business during this period. He is likely to face a high turnover and incur heavy losses because of a lack of workers to keep his business operational. His losses are likely to stem from spending more than he is earning – the replacement workers are actually more expensive than his normal permanent employees.
Arthur’s turnover is too high to keep his business running during the summer. Since summer vacations are quite long, the losses incurred must be incredibly high during this period. An interesting fact is that turnover is higher in replacement employees than permanent workers who normally work for the company. Since his fulltime workers always return at the end of the summer or when they recover from their various illnesses, Arthur cannot afford spending a lot of money on temporary workers who are not always available and are too expensive to keep on the payroll. The solution to this problem is to do away with temporary workers permanently (Uhl, 2013). The solution is to develop a schedule whereby there are two pools of workers: permanent and fulltime. However, the replacement workers are only hired during the summer and paid decent wages to keep them on the job. Arthur’s method of looking for new workers every summer is flawed and will only lead to losses in productivity and revenue. He should always have replacement workers on standby.
Ideally, they should be working in all the other seasons except summer, when they replace all the permanent workers. So, regardless of whether a permanent worker is sick or on vacation, there is a steady pool of replacement employees ready to take their place (Bridger, 2014). Arthur should change the summer vacation to a permanent off season for permanent workers. As soon as summer reaches all the permanent workers are given leaves and they only return
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