Advantages Of Job Sharing

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Recommended: Effects of unemployment in the economy

High rates of unemployment are undesirable because they are associated with high crime and low livelihood in a country. They contribute to the low gross domestic product, which represents a country’s economic power. Especially, female workers are vulnerable to the high rates of unemployment due to the facts that female workers consider a ready-to-quit job when they prepare for labor market and quit a job for their motherhood. Therefore, firms’ several political attempts have been processed to deal with the the problems, and one of them is job sharing. The Equal Opportunities Commission in the UK defined job-sharing as “a form of part-time employment where two people voluntarily share the responsibility of one full-time position. The salary, …show more content…

The first concern about job sharing is that firms may lower average worker’s wage rate to keep up with externalities. Externalities are fringe benefits and more human resource management required. Health insurance and job security are a good example of the external cost from fringe benefits. Each individual demand for their fringe benefit doubles labor cost because job sharing technically doubles labor supply in a firm. So, the firm has to either produce doubled output or at least equal marginal revenue product of labor to their wage rate. However, expected double productivity is uncertain; it is difficult to estimate and match up one’s work comparability to another in the same position to derive the double productivity. To efficiently regulate and deploy labors in appropriate positions, firms should consider another cost for recruiting and administration. When recruiting, firms require more information about workers for the work comparability and profession quality. If one takes a day off, another one should be able to cover the other’s professions. Because of this aspect, firms where they need low-skilled labors are not likely to apply job sharing concept in themselves. They do not need two people in a simple-task position and do not want to cost for the loss-making

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