companies are doing Mass layoffs while complaining about not being able to find enough employees some
workers are min-maxing the system by working multiple fulltime jobs at the same time While
others need to work hours of unpaid overtime at just one job this is not to mention that the
gig economy is consuming entire sections of the workforce the N toi was created by American labor
unions in the 1800s and became mainstream over 100 years ago when jobs looked like this and this it
was revolutionary for its time but how many of the modern problems in Corporate America are caused by
trying to make an outdated system fit with every single modern job to the US 8.4 million people
in the nation are working multiple jobs 850,000 jobs wages went up for American workers instead
they're working multiple jobs it's called being over employed and one parttime but I need both of
them to uh pay my bills every month my rent and groceries so just working all the time a report
by the management consulting for McKenzie company found that 2/3 of the average human's wealth is in
the work they can do over their lifetime everybody has time effort and experience they can trade for
money and those tradable Commodities are worth twice as much as all the other assets that the
average person possesses a regular 9 to-5 job has been a great way for billions of people to safely
exchange a predictable amount of their time for a predictable paycheck with predictable career
advancement as they gain more experience but this one- siiz fits-all model for work doesn't
fit with every job and trying to make it work has been bad for employees and bad for companies for
three reasons which is causing three equally terrible Trends in the job market the first
trend is that it makes time a worthless asset the Ford Mor company was one of the first businesses
in America to adopt the 9 to-5 40-hour Work Week Henry Ford did this to make his company the most
attractive place for Auto Workers to get a job this allowed him to pull Talent away from other
automakers without paying his workers more in order to compete with Ford other automakers were
forced to offer the same 40-hour work week with paid overtime eventually in order to compete with
the automakers other companies were also forced to offer 9 to-5 jobs so that their best workers
didn't quit and go and work on the car assembly line these Auto Workers had tightly defined in
repetitive tasks so unless the workers succumb to exhaustion they could do a consistent amount
of work for every hour they spent at their post and every additional hour would produce the same
amount of output if you work in a modern office job you will know that your work is nothing like
this sometimes there is a lot to do and sometimes there is nothing to do but you still need to be
there 8 hours a day looking busy no matter what back when the 40-hour week was being fought for
by workers unions most Americans worked in manufacturing but today most people work in
the services sector which is more diverse than you might expect unless you are working on a farm or
in a factory you are a service worker and your job could be anything from making strategic corporate
decisions to making coffees clearly these jobs are very different and should have a different
schedule but most of the corporate world has tried to make the 9 to-5 fit all jobs but this
doesn't work because no service jobs have tasks consistently delivered on a fine-tune production
line work comes and goes as internal and external customers make demands and that means when people
are busy and need to do more than 8 hours in a day to finish their work they are expected to
work quote reasonable unpaid overtime according to an ADP Research Institute study of office
professionals paid overtime jumps to an average of 99.2 hours per week in 2021 more than a full
extra day to keep up with employer demands but when there is little to no work to do because
a project has just been completed or sales are seasonally slow workers are still expected to
put in the 40 hours a week because that's what the business is paying them for if you're in this
kind of job your best option is to try and find something that makes you look busy but if you
don't have something to work on you are probably going to be given meaningless tasks just to fill
the mandatory 8h hour day if this was just another story about companies screwing over their workers
with outdated business practices it wouldn't need a video but the 40-hour work week isn't
even good for companies so it's time to learn how money Works to find out why we might be in
to data from the US sensus Bureau Mackenzie and Company and compiled by statista growth in Gig
work and freelance Jobs have outg own typical permanent jobs by 500% over the last decade
gig work apps have become very popular with unskilled workers due to their low barrier to
entry and flexible working Arrangements someone with a phone and a bike can start working for a
food delivery service like Uber Eats Postmates door Dash GrubHub or all of them all at the same
time in less than an hour by filling out an online form this has been a highly appealing
alternative to minimum wage jobs that still rely on the Antiquated process of hting in a resume
spending weeks doing job interviews only to still get get ghosted by a fast food joint offering 725
an hour for an unpredictable schedule Gig work jobs usually also pay terribly but people get
to work as much as they want when they want and they can work around another full-time job
for extra money even with all of the problems of gig work you can see why it has become so
popular the popularity of freelancing and private Contracting has also exploded this is more popular
among skilled workers who can sell their services to businesses just like an employee but with no
ongoing agreement they are only paid when there is work to be done private contracts are usually
an agreed upon price for an agreed upon outcome like $10,000 to build a company website but they
can also be built hourly for rules like Security Administrative Assistance or on demand workers
according to a report by the management consulting firm Oliver Wyman healthcare workers have been one
of the fastest growing groups of workers ditching typical permanent roles in favor of working as
private contractors on call nurses doctors and Hospital support staff already work on predictable
hours so they don't sacrifice much by working as contractors instead of a direct employee according
to the report some nurses have elected to work in the temporary staffing market so they can take on
fewer hours as mental health has become a top priority for workers in the industry private
contractors in all Industries are usually paid more for their time than permanent employees
because the business only pays for the hours of services they actually need which means most of
the time their total out of pocket will be lower with mass layoffs dominating the new cycle people
are also finding out the hard way that if they work in an out will employment State their 9 to-5
doesn't give them much security anyway so workers at all skill levels are seeing they can make more
and businesses are realizing they can cut down on expenses by doing away with the rigid 9 to-5
workday which is the second reason it's slowly becoming a relic of corporate history but the
death of the 9 to5 is not going to be a good deal for everybody unfortunately for now businesses are
going to be the biggest winners out of this shift even if they have to pay their contractors and gig
workers slightly more per hour the first loss is benefits if you work as a private contractor
you are becoming Your Own Boss which means that even though you are making more money
there is overhead that you become responsible for benefits like paid time off training retirement
plans accounting and health insurance are going to come out of your pocket health insurance through a
regular employer is normally far more affordable than private options for Gig workers this can be
especially tough because health insurance premiums for people who ride motorized scooters through
late night traffic to deliver food to people's homes is simply unaffordable on the income of
a delivery driver even if you are doing highly skilled Contracting if you don't manage these
expenses carefully you will end up with less in your pocket than if you just stuck with a regular
permanent position and your loss is their gain according to a survey conducted by Forbes small
and medium Enterprises were hiring more contract workers because it simplified their accounting
and reduced the ever increasing expenses of human resource management it's not just small companies
either according to CNBC contract workers have outnumbered direct employees at Google and
other large tech companies since 2018 and the ratio became even more skewed during Co Google
already has large human resources and accounting departments so they are pursuing contract work
for two other reasons the first is that the most talented Engineers have realized that they can
make more money working off one-off projects for lots of companies than they could by being
a full-time employee with just one company the demand for talent during the good times meant that
these companies just had to pay what these top Engineers were at asking some highly specialized
Engineers could build up to $10,000 an hour for their work to these companies even for a company
as rich as Google it was better to pay them only for the hours they really needed them instead
of paying them millions of dollars a year as a permanent salary for the odd project where their
skills would be needed the second reason is that during bad times like right now getting rid of
contractors doesn't count as layoffs so companies can easily cut expenses without technically laying
off any staff big layoff signal to investors and other employees that the the business is
in a bad shape and that they would be better off investing their money or building a career
somewhere else there are three groups that are really going to benefit from the death of the 95
but their gain is all at the expense of one big group that statistically you are a part of the
regular workers entry-level workers who can get gig work are not paid well but they weren't paid
well in minimum wage jobs either they have just gained some flexibility to work when they want
high- skilled workers who can move to contract roles can make a lot of money by working for
the highest bidding company they only lost the idea of job security that never really existed
for them anyway companies are also taking full advantage of the death of the 9 to5 by cutting
down on their biggest expense Center the losers are regular workers right in the middle who are
in rules that can't be Gigi but aren't in demand enough to be contracted out the fixed expenses
of operating as a contractor health insurance business licensing accounting and everything
else means it's only worth it for people earning well over the average wage if you are earning
$60,000 as a permanent employee you would have to charge $80,000 a year as a contractor to
break even and not many businesses are going to pay that $20,000 premium for a standard job new
regulations intended to protect contractors and workers are another problem if a contractor files
for unemployment after their job is completed with a company they can file an ss8 form with the IRS
which can trigger an audit to determine if that contractor and other contractors working for the
company meet their requirements to be counted as a permanent employee if they do then the company has
to cover their unemployment benefits and has to provide other benefits to every other contractor
in the business as well businesses don't want to take that risk so they use staffing agencies to
handle all the compliance for them according to data from the American Staffing Association most
contractors now work through middleman staffing companies for contractors working through these
middleman it can combine all of the problems of permanent employment with none of the benefits
of being a private contractor and that's the third reason why the 9 to5 is going extinct
it lets companies pull some creative business Maneuvers the Age Care industry has been one of
the biggest victims of this shift go and watch my latest video on the deadly monetization of nursing
homes to see how contract Staffing is being used as a tool to maximize Returns on a failing
business model as someone who's done Contracting work time to time in the finance space I will be
writing an article on how to make the most out of these risky rules over on my totally free email
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