Walmart Newest Profit Strategy Is To Hire A Bunch Of Temporary Workers

Walmart U.S. Chief Executive Bill Simon also confirmed that the company is  hiring more temp workers. “Their hours flex by the needs of the business from  time to time,” he told reporters the day before Wal-Mart’s annual meeting last  week.

The hiring strategy could save Wal-Mart money by trimming labor costs at a  time when its margins remain under pressure. Many consumers are still struggling  given a high jobless rate and lack of income growth, leaving retailers of  everyday goods with little pricing power, according to other company CEOs and  benefits experts. Competition from dollar stores, other big box discount chains  and grocery stores is also intense.

It also could set an example for some other companies as they look for ways  to cushion themselves from a potential rise in healthcare costs next year as a  result of President Barack Obama’s health care reforms, according industry  experts and retail executives. Tovar said that the move wasn’t related to these  reforms, commonly known as Obamacare, but he did acknowledge that it could take  a year or more for temporary workers to receive health care benefits. Turnover  in retail often occurs within the first few months.

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