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Full-time vs. Part-time salespeople Thomas R Wotruba A comparison on job satisfaction, performance, and turnover in direct selling Jialin & Kewrin.

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Presentation on theme: "Full-time vs. Part-time salespeople Thomas R Wotruba A comparison on job satisfaction, performance, and turnover in direct selling Jialin & Kewrin."— Presentation transcript:

1 Full-time vs. Part-time salespeople Thomas R Wotruba A comparison on job satisfaction, performance, and turnover in direct selling Jialin & Kewrin

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3 Estimated 2004 U.S. Salespeople13.6 Million

4 Direct selling sales force US

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8 Benefits and problems of part-time employment SourceMajor findings Grandrose and Applebaum (1986) Flexibility: part-timers offer flexibility in scheduling to match demand for their services, especially when services involve interactions with customers and customer demand is uneven across hours of the day or days of the week. Availability of knowledgeable and experienced workers: many such workers are unavailable for full-time work because of age and family or personal obligations. Commitment to work: part-timers are less committed to their work and more likely to quit, especially if a better- paying offer is presented. Wise, Bernstein and Cuneo (1985) Cost savings: part-timers can sometimes be substituted for overtime by full-time employees at correspondingly lower pay. Part-timers do not have all the fringe benefits awarded to full-timers, though arguments favoring pro-rated fringe benefits are being made (Kahne, 1985).

9 Benefits and problems of part-time employment Barrett (1983), Shanks (1984) Productivity: a half-day worker can produce three-quarters of the amount of work of a full-day worker; part-timers do not take long breaks and have less absenteeism. Nollen (1982)Supervision and training problems: supervision is difficult because part-timers are not always present and thus require extra communication efforts; part-timers require higher training costs per hour worked since they work fewer hours for the training invested in them.

10 Research issue Job satisfaction Performance Turnover

11 Comparison part-timers and full-timers on job satisfaction, performance, and turnover TopicStudyMajor findings Job satisfaction Logan O’Reilly, and Roberts (1973) No difference in job satisfaction between part-time and full-time hospital employees. Hall and Gordon (1973) Part-time female college graduates in a variety of jobs had less job satisfaction than their full-time counterparts. Miller and Terborg (1979) Part-time clerical employees had lower job satisfaction than full-timers regarding benefits, the work itself, and the job overall; no difference regarding satisfaction with supervision, advancement opportunities, and pay ( adjusted for effects of sex and tenure). Still (1983)Part-time newly-employed female retail salespeople in Australia were less satisfied with job security but more satisfied with pay than were their full-time counterparts; no differences on ten other job satisfaction variables.

12 Comparison part-timers and full-timers on job satisfaction, performance, and turnover TopicStudyMajor findings Job satisfaction Eberhardt and Shani (1984) Part-time medical rehabilitation hospital employees had higher job satisfaction than did full-timers (no difference attributable to age, sex, or tenure) PerformanceThurik and van der Wijst (1984) In Dutch and French retail stores with counter service (as opposed to self-service), labor productivity was positively related to share of part-time labor. TurnoverStill (1983)Turnover, operationalized as absenteeism, was greater among full-timers. Granrose and Applebaum Low turnover occurred in a bindery operated exclusively with part-time workers, though no data reported. Jackofsky, Salter and Peters Discussed why voluntary turnover is higher among part-time than among full-time workers but gave no data.

13 The study Four direct selling companies in the US -Mary Kay Cosmetics -Saladmaster -United Consumers -Tupperware

14 The study 1600 respondents 491 people responded 32% had quit 29% full-time 71%part-time 85% female

15 The study Variables Job satisfaction -ten items from the job satisfaction subscales of the job diagnostic survey that is developed by Hackman & Oldham -Seven point rating scales -Covered job aspect : feelings of worthwhile accomplishment, job security, earnings, personal growth, challenging work, freedom of action and desirable social interactions with peers and co-workers.

16 The study Variable Performance, was measured by calculating earnings per hour based on 2 separate questionnaire answers -Involved dollar earnings per hour since starting the selling job -Measure of time worked, including number of weeks on the job and number of hours worked per week

17 The study Variable Turnover, was measured using a single scale incorporating that both quitting and intentions to quit Other outside selling employment

18 The analysis & result Three outside employment categories: None Part-time Full-time This could be paired with part time or full time status in direct selling

19 The analysis & result Respondent groupsJob satisfaction PerformanceTurnover Direct selling Job Only Part time sales people53.8819.872.95 Full time sales people39.608.144.73 Employment combinations Part time selling & no other job55.0314.132.81 Part time selling & Part time other53.7123.233.06 Part time selling & full time other52.8623.563.03 Full time selling & no other job43.996.004.36 Full time selling & part time other36.928.935.07 Full time selling & full time30.8313.325.37

20 The analysis & result H1= job satisfaction will be greater for part-time salespeople than for full- time salespeople H3= Performance will be better for part time salespeople than for full time salespeople H5= Turnover will be lower for part time salespeople than for full time salespeople

21 H1= Job satisfaction will be greater for part time salespeople than for full time salespeople Respondent groupsJob satisfaction Direct selling Job Only Part time sales people53.88 Full time sales people39.60 Employment combinations Part time selling & no other job55.03 Part time selling & Part time other53.71 Part time selling & full time other52.86 Full time selling & no other job43.99 Full time selling & part time other36.92 Full time selling & full time30.83

22 H3= Performance will be better for part time salespeople than for full time salespeople Respondent groupsPerformance Direct selling Job Only Part time sales people19.87 Full time sales people8.14 Employment combinations Part time selling & no other job14.13 Part time selling & Part time other23.23 Part time selling & full time other23.56 Full time selling & no other job6.00 Full time selling & part time other8.93 Full time selling & full time13.32

23 H5= Turnover will be lower for part time salespeople than for full time salespeople Respondent groupsTurnover Direct selling Job Only Part time sales people2.95 Full time sales people4.73 Employment combinations Part time selling & no other job2.81 Part time selling & Part time other3.06 Part time selling & full time other3.03 Full time selling & no other job4.36 Full time selling & part time other5.07 Full time selling & full time5.37

24 The analysis & result H2= Job satisfaction will be greatest for those part time salespeople who do not have other outside employment and will be lower as the extent of other outside employment increases H4= Performance will be better for those part time salespeople who do not have other outside employment and will be lower as the extent of other outside employment increase H6= Turnover will be lower for those part time salespeople who do not have other outside employment and will increase as the extent of other outside employment increases

25 H2= Job satisfaction will be greatest for those part time salespeople who do not have other outside employment and will be lower as the extent of other outside employment increases Respondent groupsJob satisfaction Direct selling Job Only Part time sales people53.88 Full time sales people39.60 Employment combinations Part time selling & no other job55.03 Part time selling & Part time other53.71 Part time selling & full time other52.86 Full time selling & no other job43.99 Full time selling & part time other36.92 Full time selling & full time other30.83

26 H4= Performance will be better for those part time salespeople who do not have other outside employment and will be lower as the extent of other outside employment increase Respondent groupsPerformance Direct selling Job Only Part time sales people19.87 Full time sales people8.14 Employment combinations Part time selling & no other job14.13 Part time selling & Part time other23.23 Part time selling & full time other23.56 Full time selling & no other job6.00 Full time selling & part time other8.93 Full time selling & full time13.32

27 H6= Turnover will be lower for those part time salespeople who do not have other outside employment and will increase as the extent of other outside employment increases Respondent groupsTurnover Direct selling Job Only Part time sales people2.95 Full time sales people4.73 Employment combinations Part time selling & no other job2.81 Part time selling & Part time other3.06 Part time selling & full time other3.03 Full time selling & no other job4.36 Full time selling & part time other5.07 Full time selling & full time5.37

28 The findings Correspond with Eberhart and Shania Support the arguments Still

29 The analysis & result  Job satisfaction from the part timers are higher than that from full timers - Involvement in the organizational functioning - Initial expectations

30 The analysis & result Performance of part timers are large then full timers especially part time sell people with another job - Priority for pay

31 The analysis & result Turnover - It is closely parallel to the results of job satisfaction - There is a higher turnover by part timers or the full timers with other employment

32 Limitations The unequal cell sizes Different operationalization of the variables Other outside selling

33 Conclusion Part time show greater job satisfaction, lower turnover and greater productivity in terms of earnings per hour Part timers might be more effective in recruiting additional sales personnel >>The downside: -Part timers communication and training cost per sales dollar -Possibly declining productivity gains

34 Thank You Kewrin Tongtawat & Jia-Lin Chi


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