Showing posts with label freelance. Show all posts
Showing posts with label freelance. Show all posts

Sunday, October 25, 2015

The dark side of on-demand work

Another one of those opinion pieces highlighting the latest work trend, which everyone is so getting fond of ... flexible work.

Only problem with on-demand, freelance work is the low pay & the exploitation of the worker. Yes, it frees an individual from a strict 9-5 schedule & perhaps, even long commutes, but then that individual is tied to a computer for long times, because each work is paying low enough that individual has to string together a series of enough jobs to make it worth his/her time.

Companies are of course loving this on-demand work trend because they can offload all the "menial" / insignificant / time-consuming work on to the freelancer, while reducing their number of employees. Those reductions in manpower means a huge reduction in labour costs. Those freelancers, on the other hand, are responsible for their own health insurance, saving up on pension, & of course, any vacations mean no earning power during those times (so, in effect, unpaid vacations).

Although, the author ends the piece with a great advice that devaluing the work what people do makes the whole society lose its humanity & values, & make the humans nothing more than being treated like mere machines, the end result will still be exploitation of the average human. Because, after all, nobody gets rich by paying more money, & everyone dreams to be rich. So, a few will indeed get rich, at the expense of turning millions into poor souls.
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Work how you want, when you want & for whom you want.

Sounds like employment paradise – & the rise of the on-demand work force, seems to suggest that this vision can be turned into reality.
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While Uber is a prime example of an on-demand work force – where workers are matched with employers for the duration of a project – it’s just the tip of the iceberg when discussing the benefits & perils of such a labour market. We are entering an era in which will see the Uberfication of everything, & while the sharing economy brings tremendous value to cost-conscious companies & can provide employees flexibility & extra cash, it comes with inherent risks that ethical companies will need to manage.

A few months ago, a New York Magazine piece detailed how several house cleaners provided by San Francisco startup Homejoy were homeless themselves, despite the fact that the company raised $40-million in venture capital.

These stories will surface closer to home, too. In Ontario, 41% of work is now conducted outside of the traditional scenario, where an employee works full time for a single employer, according to a recent survey. Those involved in such precarious employment – where workers patch together several part-time positions – are typically paid lower wages & have few opportunities for growth, according to a recent OECD report that observed that non-standard work is rarely a stepping stone to a better job.

So, who are these new on-demand workers who source roles from mobile technology platforms, & why do they do it? According to a recent US survey, they are predominantly white, male & between the ages of 18 & 34. They are educated, with almost 30% possessing a college degree. Their motives primarily are making money & controlling their schedule but their inability to make enough remains their most pressing issue, according to a Rutgers study.

The concept of flexibility in these roles is also misguided, according to Kristy Milland, who spent more than 9 years as a Toronto-based on-demand worker for Amazon’s Mechanical Turk, a platform that crowdsources human labour for tasks that computers can’t do as well.

Ms. Milland, who wrote articles & product descriptions, transcribed audio & video files, handled translations, graphic design, Web design, market research, database creation, programming, & other projects, said that work opportunities are posted sporadically & pay below an acceptable rate. Full-time “Turkers,” explained Ms. Milland, are chained to their computers at all times of the day just to be able to make enough to get by, & often accept lower compensation to pay their bills.

Ms. Milland made “Turking” her primary job in 2010 when her husband lost his full-time role at a Fortune 500 company. She earned about $50,000 a year, sometimes working 17 hours at a stretch, seven days a week, & taking full weeks off when she generated enough income. She never worked for less than $20 an hour & often took weekends off but usually spent the rest of the day at her computer in case work appeared.

While she lauds the benefits of working when you want, the risk for exploitation quickly surfaces. The company assigning the project can reject your work, forcing you to go without pay – & with no recourse. Amazon can also suspend you without reason & there is no way to appeal, she said. You cannot move up the platform or create lasting relationships with those requesting the work, to open the door to better opportunities.

Generally, it’s a stagnant job where your income ebbs & flows based on what work happens to have been posted,” Ms. Milland said.

We are sold as ‘artificial’ artificial intelligence, not live humans with skills & intelligence, & that hurts our chance of ever being respected as a talented, high-quality work force deserving of respect,” she added.

Until now, new & disruptive companies have fuelled the sharing economy but traditional companies will start to join, said Alexander Shashou, president & co-founder of Alice, a New York-based technology platform that enables services-on-demand for the hospitality industry.
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While there may be no way to put this on-demand work force genie back in its bottle, as the practice becomes more popular & ingrained, the workers’ experience needs to be taken into account. As an entrepreneur, I’ve benefited from working with contractors I’ve found on Upwork, paying industry standard wages & often speaking on the phone or even in person.

Increasingly devaluing work done by humans helps some companies in the short term, but none of us in the long term, & without taking precautions, we run the risk of racing to the bottom.


Leah Eichler is founder & CEO of r/ally, a machine-learning, human capital search engine for enterprises. Twitter: @LeahEichler

Monday, September 7, 2015

'Precarious employment' still rising in Toronto & Hamilton

Since, I've written some blog posts on employment situation in Toronto, I won't write a long post again, except, highlighting a few stats from this article.

- precarious employment includes people in temp & contract work, along with those with uncertain work schedules, irregular earnings, inconsistent hours of work or jobs without benefits, & also includes some self-employed people as precarious, only if they have irregular, unpredictable work

- almost half (44%) of adults in Toronto & Hamilton are in precarious employment

- once someone is in precarious employment, chances are high that they are going to be in trapped in it

- workers in precarious employment are almost twice as likely to report worse mental health than those in secure positions

- visible minorities are far more likely to be working in unstable jobs

- “Not only has work become less secure for racialized workers, but also the pay has actually decreased for them,” said Wayne Lewchuk, McMaster professor of labour studies & economics

- precarious employment has grown almost twice as fast as standard employment since 1997

- more men are landing in precarious employment, while white women are the only ones who are getting more secure employment & less precarious employment

- In Toronto, only 45.7% of respondents are now holding permanent full-time jobs with benefits

- 47% of Canadian firms in a recent Deloitte poll said they plan to increase the use of “contingent, outsourced, contract or part-time” workers in the next 3 to 5 years
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Precarious employment is becoming more prevalent in Canada’s largest city, a shift that is putting financial strain & emotional stress on households.

44% of adults in the Greater Toronto & Hamilton Area work in jobs that have some degree of insecurity, a study ... says. That share, which includes people working through temp agencies, freelancers & contract workers, is greater than the last time the survey was conducted in 2011, when it was 41%.

The new study is based on a survey of 4,193 people & produced by United Way Toronto & McMaster University.

The changing nature of work carries a broad impact. For many workers, unstable employment means less access to training & opportunities to get ahead, fewer benefits, more trouble managing finances & more anxiety. The effect spills into family & home life too, making it difficult to pay for school trips & plan any activities ... .

The study also looked at whether people are able to climb out of insecure employment. “One of the biggest ‘ah has’ for us was that no, in fact – if you are in precarious employment, there’s a very good chance you’re going to become trapped in it,” said Susan McIsaac, president & CEO of United Way Toronto. This is the case not just for those in low-income work, but “for many people in the middle class, this was a huge challenge in being able to maintain their middle-class status.”

Its definition includes people in temp & contract work, along with those with uncertain work schedules, irregular earnings, inconsistent hours of work or jobs without benefits. It counts some self-employed people as precarious, only if they have irregular, unpredictable work.

That’s the case for Anna Withrow. She has been largely self-employed since 2001, as a communications & marketing consultant, & says erratic earnings have wreaked havoc with her life.

Cash flow has been the biggest crippling thing,” said Ms. Withrow, 45, who lives in Toronto. Her income has ranged from $24,000 to about $77,000, with no income at all in some months, & she has worked anywhere between 40 & 100 hours per week.

The impact has been both financial – a run-up in debts, making it difficult to pay the mortgage & finish renovations – & physical too, leading to acute stress, a less nutritious diet & weight gain. “If the right position came along, I would take it tomorrow.”

Workers in precarious jobs are almost twice as likely to report worse mental health than those in secure positions, the survey shows. Nearly half of them say they often don’t know their work schedules at least a week in advance. Scheduling uncertainty makes it hard to find child care.

Visible minorities are far more likely to be working in unstable jobs.

Not only has work become less secure for racialized workers, but also the pay has actually decreased for them,” said Wayne Lewchuk, McMaster professor of labour studies and economics.

The study comes as the provincial government is reviewing its employment & labour laws, noting that non-standard work has grown almost twice as fast as standard employment since 1997.

By gender, a growing share of men are landing in precarious employment, he noted, likely a result of fewer factory jobs, while white women “are the only group in the study who saw an increase in secure employment & a decrease in precarious employment.”

The longer-term trend points to more insecure employment, said Prof. Lewchuk. “Each time there’s a recovery, the level of security is a little bit lower than the previous boom. I think this is because the competitive pressures are greater – firms are looking to cut costs … technology has changed, & there’s an infrastructure where they can go to temp agencies, & get not just unskilled workers, but they can get CEOs now.”

The results show almost six in 10 workers hold some form of secure employment — with 48% in permanent, full-time jobs that pay some benefits, & 8% permanent, part-time employees. This share has slightly fallen. Meanwhile, the portion of people in the least secure type of work, dubbed “precarious,” grew to 28.5% last year from 25.9% 3 years earlier.

In the city of Toronto, less than half, or 45.7%, of respondents are now holding permanent full-time jobs with benefits.

A debate has emerged over precarious employment – how it’s defined & what the long-term trends are. One analysis, by Toronto-Dominion Bank in March, found precarious employment levels in Canada are higher than before the recession, though they’re currently declining. It said this type of work often tracks business cycles, & that precarious employment will remain “elevated” over the next 2 years.

A 2013 paper by the Institute for Competitiveness & Prosperity found a growing number of workers in Toronto are employed in temporary, part-time, low-paying positions in routine-service industries.

Almost half, or 47%, of Canadian firms in a recent Deloitte poll said they plan to increase the use of “contingent, outsourced, contract or part-time” workers in the next 3 to 5 years, a strategy the consulting firm says helps give firms the ability to scale up or down as business needs fluctuate.

In a global report ..., the Organization for Economic Co-operation & Development said workers on temp contracts in Canada have “particularly low annual earnings” & that the annual median earnings of the self employed are also “considerably lower” compared with salaried workers.

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The paper recommends a range of measures, including the need for ensuring all workers have access to skills & work training, to developing – & sharing – the business case for secure employment. At the federal level, it called for better labour market information & for updating employment insurance rules to better fit with today’s jobs market.