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Essay / What are the external challenges facing grocery stores...
Increased unionization, health care costs, and wages all negatively impact the cost of grocery store employees. Some of the factors attributed to this increase in labor costs include "tight markets, increased overtime, government-mandated minimum wage increases, and a higher proportion of full-time employees" (analysis Kroger SWOT, 2014, p. In 2014, the cost of employee health care increased 7% and is expected to rise further. Increased unionization, while beneficial for employees, creates a burden of increased operating expenses for employers. Businesses are combating this threat by placing greater emphasis on work management and employee efficiency. Like any business, companies will set a standard level of expectations for each employee and measure performance against that. If, for any reason, an employee does not meet standards, he or she may be fired or demoted to a lower-paying position. Some companies have adopted technology in registers to facilitate this practice, which measures the time it takes an employee to complete each checkout (O'Connell,