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Wal-Mart’s Everyday Hiring Strategy: Add More Temporary Workers

Reuters (06/13/13) Dhanya Skariachan; Jessica Wohl

In recent months, of 52 U.S. Wal-Mart stores surveyed, 27 have only hired temporary workers, 20 hired a combination of temporary and regular full- and part-time workers, and five did not hire. Fewer than 10% of Wal-Mart’s employees are temporary. Wal-Mart’s temporary workers are paid the same starting wage as other workers. The trend may be calculated to save labor costs, because Wal-Mart is experiencing tight margins, and it may also help Wal-Mart deal with the implications of the Affordable Care Act.

Wal-Mart’s employee levels have remained more or less stable since 2009. Temporary workers often are hired on 180-day contracts, and must reapply for work when their contract expires.