Are self-employed workers getting the short end of the stick?
Institute of People Management (IPM)
A professional membership body representing the human resource and people management fraternity.
Both employers and workers are continuing to move towards a more temporary and independent workforce, according to EY Research. Why would employers move towards a more contingent workforce? Key reasons are cited as:
· Making use of capability that does not exist in the permanent workforce
· Helping to manage labour costs
· To target resistance to change in the organisation
· To cater for seasonal work demands.
But a new report from the UKs Social Market Foundation has highlighted some interesting findings. So-called ‘self-employed’ workers may be getting the short end of the stick.
Emran Mian, Director of the Social Market Foundation, says:
“[The data] suggests that self-employed workers may be getting the worst of both worlds… people may behave very much like employees and yet lack the rights and protections of employees.”
The self-employed are getting less support generally. Traditional employees are twice as likely to get training, and they also take double the number of sick days. What’s more, the self-employed are less likely to be paid for their overtime. Whilst many of them report increased autonomy over working hours, which is cited as a big perk of being self-employed, about 20% of them did not report that autonomy.
Although most self-employed workers from the EY study felt the benefits of contingent work outweigh the downsides (66%), a rather lager 58% felt that permanent employees were treated better than them. And 68% would like more options around pensions and healthcare.
“It’s critical for employers to develop better methods of managing their increasingly contingent workforce and to consider some of the key HR processes and analytics that can have a negative effect on what could ideally be a mutually beneficial relationship.” Tony Steadman, Principal in EY’s People Advisory Services.
We are moving to the gig economy and the prevalence of the ‘everyday entrepreneur’ will increase, where people control their own time and service provision. We need to keep exploring what we can do within our own context to ensure that everybody wins.
Chief Operating Officer at Small Business Voice
8 年Don: Seems Unions and politicians believe one shoe fits all. Employment law is full of this assumption. You are so right every workplace, every worker and every circumstance is different.
Employers' Advocate at Don Rhodes & Associates Limited
8 年Might I also add that present Ministers seem to have been overly influenced by left leaning approaches to employment, helped in their thinking by public servants who now comprise the bulk of Union members. Witness this "unbelievable" move to legislate for equal value where a bunch of folk will now [ it seems ] decide the value of work. So academics and politicians potentially decide that a truck driver's work is the same value as harbor board pilot; or the historical thrust by nurses that their work is the same value as a police officer. Somewhere, somehow, folk seem to be forgetting that it is the Employer who has to pay, and that each business is different in so many ways............financial strength; competition; location; legislative requirements; managerial experience; access to various resources such as labour;............. the list goes on. What ever happened to the situation where an Employer advertised and offered a position, which people were free to accept or decline? The recent spate of shocking employment practices notably involving it seems "immigrant Employers" doesn't help so I guess we fight to determine when enough-is enough in terms of how far the government tell Employers how to run their businesses.
A professional membership body representing the human resource and people management fraternity.
8 年Thank you for your feedback Agnes
Senior Associate - Commercial Law / WHS Commission member (WA)
8 年It has been my experience that some employers use the "contractor" arrangement in an attempt to avoid "employee" statutory pay entitlements and for more flexibility to let workers go and avoid dismissal laws. Some of these work arrangements fall foul of the "good faith" provisions in NZ's employment laws (same goes for Australia) and the worker status can be successfully challenged at the ERA (FWA). Of course, the modern work environment has changed, not just due to Union involvement but as a result of technology, and brings with it some exciting opportunities. We see also the shift in health and safety laws to "workers" rather than "employees". This assists with a better understanding of the legal protections required for contractors and others.
Chief Operating Officer at Small Business Voice
8 年Over the last 30 years, I have observed NZ moving from a nation of employees, to a nation of contractors. This has occurred as a result of over zealous employment laws introduced by the Unions who infiltrated parliament (e.g. Andrew Little etc). Employers have responded by replacing their employees with contractors to avoid these laws. As a consequence of this shift, Union membership has dramatically diminished. (Except in government departments where it flourishes). Yes; I agree that contractors (who are primarily ordinary mums and dads), are often worse off than when they had employment. It is my prediction that left wing political parties will attempt to own the self employed contractor fraternity and introduce laws imposing minimum standards for contractors. Whereupon the cycle will start again.