Budgeting for basics such as food, shelter, and clothing can be challenging when you can't predict how much money you'll earn from week to week.

And saving? That can sometimes seem like an impossible dream.

This is the reality for many retail workers who are paid by the hour. Because their schedules often fluctuate based on business demand, they have little certainty about their income. Employers use a technique called "on-call scheduling" to minimize labor costs during slow business periods.

While this makes financial sense for the business, it can lead to serious problems for hourly workers. Such scheduling practices can make basic life tasks like budgeting, paying bills, saving for the future, and securing childcare extraordinarily difficult. Planning your life becomes a constant challenge if you don't know when you'll be required to work.

How widespread is this problem? Let's take a deeper look.

The Prevalence of On-Call Scheduling

In recent years, the issue of on-call scheduling has gained significant attention from policymakers and workers' rights advocates. A 2022 study by the Economic Policy Institute found that about 10% of the U.S. workforce, or about 13 million workers, have irregular or on-call work schedules. The study also found that workers of color, particularly women of color, are disproportionately affected by these practices.

On-call scheduling allows employers to use sophisticated software to make real-time decisions about staffing levels based on factors like sales data, weather forecasts, and even social media activity. By incorporating such data into their scheduling systems, employers can theoretically optimize labor costs by ensuring they are not overstaffed during slow periods.

Unfortunately, this optimization often comes at the expense of workers, who must remain available for work with no guarantee of actually getting to work or being paid. If workers are not called in for a shift, they miss out on the pay they would have earned had they been given a regular shift.

This arrangement introduces a great deal of instability and unpredictability into the lives of these workers. Along with the loss of potential earnings, workers must often scramble to find last-minute child care or cope with disruptions to plans for school, family obligations, or a second job.

Even if a retail worker isn't employed by a business that uses on-call scheduling, the highly variable nature of retail customer traffic can still lead to inconsistent income. Managers may send workers home early if business is slow. Some states have laws mandating a minimum number of hours of pay when a worker reports for a scheduled shift, but compliance with and enforcement of these laws can be spotty.

The Impact on Workers

The unpredictability caused by on-call scheduling and last-minute shift changes can wreak havoc on the lives of hourly retail workers. Imagine trying to budget for rent, groceries, and other essentials when you don't know how much you'll earn from one week to the next. Planning for the future, whether saving for a car repair, a child's education, or retirement, can feel like an impossible task.

Unstable schedules can also make it difficult for workers to pursue education or training to advance their careers, as they may be unable to commit to regular class schedules. Childcare also becomes a significant challenge, as most daycare centers require predictable drop-off and pick-up times, and last-minute babysitters can be hard to find and prohibitively expensive.

Moving Forward

The fight for fair workweek laws and stable scheduling in the retail industry is ongoing, and progress will likely be incremental. However, there is cause for hope. As public awareness of these issues grows, more policymakers are taking notice, and workers are gaining voice and leverage.

If you work in the retail sector, keep sight of long-term financial goals. Research and consider opening a retirement account, such as an IRA, to begin saving for the future. Even small, consistent contributions can grow over time due to compound interest.

Diversifying your income can help offset the variability of retail work. Consider looking for additional part-time work, freelance opportunities, or gig economy jobs that can supplement your income. Skills-based side hustles or online sales platforms can also provide additional revenue streams.

The Takeaway

On-call scheduling and similar practices often make it difficult for hourly retail workers to enjoy financial stability. If you're having a hard time budgeting, saving money, or paying bills because of inconsistent income, make sure you're aware of your rights under the laws of your state.

The road to truly fair scheduling in the retail industry may be long. Still, every worker who speaks up and every policy passed brings us one step closer to a future where every job comes with the dignity of a stable, predictable income. It's a future worth fighting for.