The $100 MBA Show

Episode MBA2681 Q&A Wednesday: How Do I Ask an Employee to Go from Full-time to Part-time Hours?
Host: Omar Zenhom
Date: September 24, 2025

Episode Overview

In this Q&A Wednesday episode, Omar Zenhom tackles a common but challenging scenario for entrepreneurs and small business owners: how to ask a full-time employee to transition to part-time status. He draws directly from his own experience, offering a clear, empathetic, step-by-step approach for making this difficult conversation as fair and professional as possible, without damaging the relationship.

Key Discussion Points & Insights

1. Get Clear on Your Reasoning

(04:20)

• Clarity is essential: Before talking to the employee, become “crystal clear” with yourself on why you’re making this move—is it for financial reasons, workload, or a temporary business shift?
• Simple explanations help: Omar stresses the importance of being able to explain your decision simply and confidently.
  • Quote:

    “If you can't explain why in a simple way you're doing this, the conversation with the employee is going to feel really shaky and unconvincing to them.”
    — Omar Zenhom (04:40)

• Confidence matters: Employees can sense uncertainty, so having your reasoning straight is crucial to a smooth, honest discussion.

2. Decide What You Can Offer

(05:28)

• Frame the upside: Omar suggests considering what you can offer to soften the blow—e.g., flexible scheduling, work-from-home options, or benefits continuity.
• Show you care: The conversation should demonstrate your continued investment in the employee’s well-being.
  • Quote:

    “You got to show that you still care about them and that you want what's best for them given your constraints.”
    — Omar Zenhom (05:50)

3. Make it a Face-to-Face (or Video) Conversation

(06:23)

• No emails for this: Such conversations should always be in person or on a video call, never via email or text.
• Be transparent and empathetic: Seeing your face and tone helps communicate genuineness and care.
• How to say it:
  • Quote:

    “John, I want to talk about your role right now. The business simply can’t support this role full time. I really value your contribution and would love for you to stay on part time. Here’s what that looks like.”
    — Omar Zenhom (06:40)

• Focus on retention, not just reduction. Show your priority is keeping them with the company within new constraints.

4. Give Them Time to Process

(07:10)

• Don’t seek an immediate answer: Recognize this is a big change that may impact not just their work but their family and income.
• Respect the situation: Omar recommends explicitly inviting the employee to take 1–2 days to consider, ensuring they feel respected.
  • Quote:

    “By giving them space, you're showing them respect. You're also not belittling the situation.”
    — Omar Zenhom (07:30)

• Set a timeline: Suggest a follow-up meeting to close the loop.

5. Be Prepared for "No"

(09:14)

• It's a real possibility: Not everyone can take a reduction in hours/pay, especially with today’s economic pressures.
  • Quote:

    “Not everyone can afford a cut in hours and a cut in pay. Especially in this economy and the way inflation is.”
    — Omar Zenhom (09:18)

• Have backup plans: Consider how you’ll handle the workload if they decline—spread tasks internally, hire a part-timer or freelancer (e.g., via Upwork), or rework the structure.

6. Document Everything

(11:07)

• Make it official: If the employee accepts, update contracts, hours, pay, and inform your payroll/accounting systems.
• Legal and relational clarity: This protects both sides and maintains trust.
• Seek professional advice: Consult a lawyer and accountant for best practices and legal compliance.

Memorable Moments & Personal Insights

Personal Story: When Omar Had to Do This Himself

(12:06)

• Omar recalls reducing hours for his first team, feeling both fear and embarrassment.
• Unexpected positivity:
  • One employee later said they appreciated not being laid off and found part-time hours beneficial for their life stage.
    • Quote:

      “They really appreciated that I didn't just let them go.”
      — Omar Zenhom (12:38)

• Lesson: Being honest and respectful can lead to surprising, positive outcomes.

Final Summary & List of Steps

(14:02) Omar recaps the process as six key steps:

1. Know why you’re doing this — Be clear and confident in your reasoning.
2. Decide what you can offer — Consider all possible positives for the employee.
3. Have a face-to-face/video talk — Never resort to email or text.
4. Give them space to process — Respect their need for time to decide.
5. Be ready for “no” — Make sure you have contingency plans.
6. Document everything — Update agreements and processes formally.

Quote:

“If you do it with clarity and empathy, you’re going to come out with your reputation intact and maybe even a stronger relationship with that employee...”
— Omar Zenhom (15:04)

Leadership & Recruitment Insight

(15:44)

• Omar shares a rule: whoever hires is also responsible for handling transitions or terminations, ensuring better future recruitment decisions.
• Entrepreneurship reality: Hard conversations are inevitable, and success comes from learning to handle them well.

Notable Quotes

• Clarity of Purpose:

  "If you can’t explain why in a simple way... the conversation with the employee is going to feel really shaky and unconvincing to them." (04:40)

• On Caring:

  "You got to show that you still care about them and that you want what's best for them given your constraints." (05:50)

• How to Say It:

  “John, I want to talk about your role right now. The business simply can’t support this role full time...” (06:40)

• Respect for Space:

  "By giving them space, you're showing them respect. You're also not belittling the situation." (07:30)

• Preparedness:

  "Not everyone can afford a cut in hours and a cut in pay. Especially in this economy..." (09:18)

• Positive Outcome:

  "They really appreciated that I didn't just let them go." (12:38)

• Wrap-up Wisdom:

  "If you do it with clarity and empathy, you’re going to come out with your reputation intact and maybe even a stronger relationship with that employee..." (15:04)

Conclusion

Omar’s advice is rooted in empathy, practical experience, and clarity. By following his six-step framework, business owners can navigate these tough conversations with professionalism and care, often preserving or even strengthening their relationship with valued employees.

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