You are a senior IT Project Manager at Midtown Logistics Partners, which is a division of a large global logistics firm. Midtown is located in a mid-sized Southern Ontario city. Midtown has a staff of 150 people at different organizational levels, and annual revenues of $70 million. It works with manufacturing companies across Canada. Midtown is facing a quandary regarding hiring staff for a proposed distribution center expansion. The company has been in its current location for five years and management has usually hired staff on contract positions. The contracts usually last between one and six months in duration, and 40 percent of the firm's staff are on contract at any given time. Staff hired on contract are often renewed many times. In fact, there are other PMs and senior staff (you are full-time) who have been on contract for five years. Contract staff are paid between $75 and . $100 per hour, with a contract based on a 40-hour work week. The mean salary for a contract PM is $90 per hour, with most earning $85 per hour. Overtime is paid at a rate of time and a half (1.5 times the usual hourly rate) after 40 hours and most developers work between 10 and 20 hours of overtime per week. Contractors typically work 47 weeks per year and take three weeks off during the year for vacation. Midtown has you and one other fulltime person in the Project Management office. The company's owners recently suggested hiring fulltime staff to replace all of the contractors as it may be cheaper than having them on contract. They asked you to write a short report comparing the cost of paying someone on contract versus a full-time salary. The benefit package for a full-time developer would be equal to 30 percent of salary in terms of value. In this scenario, as an example, someone earning $100,000 per year would actually cost the company $125,000 with benefits added into total compensation. However, the benefit cost is calculated as a percentage of base salary and does not include overtime. Based on the information presented above, argue either in favour or against hiring staff for Midtown on a full-time basis. You are asked to do the following. Read the case below and write a 400 word informal report on it.

The report should address the following points: •Identify the problem or need in brief terms.

•Announce the recommendation, solution, or action concisely and with action verbs

•Explain more fully the benefits of the recommendation or steps necessary to solve the problem.

•Include a discussion of pros, cons, and costs.

•Conclude with a summary specifying the recommendation and necessary action

Answer rating: 100% (QA)

Identify the problem or need in brief terms When it comes to personnel for a future distribution facility expansion Midtown is in a bind Its split between hiring more fulltime employees and staying wi... View the full answer