The Shifting Work Force
September 6th, 2009 |
Over the course of the past few years, we’ve seen the bottom fall out of the financial markets, the country has slipped into a deep recession, and the unemployment rate has skyrocketed as companies trim back on payrolls, cut salaries, benefits, and other expenses with surgical precision.� Over the same time frame, we’ve seen the actual cost of an employee nearly double as health insurance premiums spiral out of control, taxes increase, and production decreases in the work force. And, we cannot help but wonder, where is it all headed?
Not surprisingly, early indicators in key fields like construction, the trades, and now even in white collar jobs, are pointing to the trend of “outsourcing” as much as possible, up to and including key personnel.� For example, where construction companies once employed project managers, superintendents, and laborers, most of these positions are now held by subcontractors, or people who are technically “in business for themselves,” meaning they are used strictly on a job by job basis, and the company who is utilizing the subcontractor has no employment liability whatsoever.� Meaning, no “salaried” positions, no benefits, no employment taxes, no worker’s compensation, no vacations, holiday pay….the list goes on and on.�
We’re now seeing this trend spread into the white collar world, as former key executives who were laid off, or whose positions were eliminated, are finding potential employers now proposing to contract the services of an individual, as opposed to hiring that individual as a full time, permanent employee. This approach literally saves the company thousands of dollars on every position that can be converted to subcontracted services. And, as the economic climate changes, and the markets readjust, we suspect that this may become the standard operating procedure in many professions.��
And, who knows, given the direction that our country as a whole is taking, this may be the only way that private enterprise can survive.
What will this mean for you and me?� It means a return to the days when there were no benefits, no health insurance (unless you count what the government is trying to do, but that’s another article in itself), no vacation or sick time, and no stability. For any of us who finds ourselves in the position of being a “subcontractor,” it means that our positions within the� companies that we work for will become even less secure, with a day by day uncertainty, as there will be nothing to bind us to the companies we were once employed by.� And, even though a company may have to pay a little more up front for a subcontractor, the savings will be substantial when all other factors are taken into account.
Don’t believe it?� Look around. It’s already here.��
Tammie is the owner of The Connections Group and has been in business since 1993. The Connections Group owns and operates nearly 170 websites, including http://www.OnlineBizConnection.net, and http://www.BesteReaders.net
