I just genuinely don’t understand that phrase, if you have someone working 40 hrs a week at $10 an hr (or more since it’s usually management covering this shift) and they want to work 20 how is going to cost the company more money to hire me to work those 20 hours. I have tons of restaurant experience and I keep getting denied. I’ve had 3 mum’s for babysitting gigs tell me the same thing, why even put the ad up if you knew you can’t afford it and you’re husband is going to watch the kids. This just happened to me at my jobs of which I alr possess (our location closed down so I went to one a few miles over) happened w whole foods and a few other restaurants (literally went thru 2+ rounds of interviews and orientation to be told that on my first day) I’m so stressed out and sad idk if I can do this again but I’m in so much debt I’m starting to believe its something about me and “budget cuts” are their excuse. I just don’t understand these are companies where everyone Is getting paid the same/ low wage and they are obviously understaffed and their existing staff does NOT want to work the amount of hours they are given so how does it cost them more money to just hire me? I’ve even offered to work for half the wage 😞
In: Economics
Imagine a pizza place. They have a certain amount of money to buy ingredients for pizzas and pay the people who make them. Now, if they need to save money, they might decide to use less cheese and fewer toppings on each pizza (that’s like budget cuts). Now, let’s say they have pizza chefs, and they’re already working as much as they can. If the pizza place doesn’t want to spend more money, they might decide not to hire any new chefs, even if they have more pizza orders (that’s like a hiring freeze). So, when a company talks about budget cuts, it means they want to spend less money overall. And when they mention a hiring freeze, it means they’re not hiring new people for now to save money, even if they have more work to do. It’s not about you; it’s about the company trying to manage its money.
Every employee costs money even if they work no hours. The company has to pay for
hiring, training, payroll, and tax administration.
Budget cuts and hiring freezes in my experience usually have less to do with market conditions and more about rightsizing (course correction) for a prior mismanagement of finances or overall poor performance. It’s not a reflection on you.
Keep in mind, however; there are additional costs to hiring someone than just payroll. It’s also pretty standard to air on the side of being understaffed vs having too many people, especially with roles that are not revenue generating.
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