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It’s time to make employment fair in the gig economy

(ENTREPRENEUR) Gig jobs seem to be increasing yet the unfairness against them seems to be on the rise.

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Gig or contract

The days when you could expect to find a decent job – one where you’d work for the same company for years, gaining promotions, raises, and benefits – seem to be long over. “Gigs” used to be small side-jobs used supplement your primary source of income.

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More and more workers these days, with or without college degrees, are relying entirely on gigs, freelancing, contracting, and temporary work.

The not so glamorous

And while there are lots of benefits to the gig economy, namely flexibility, it has also made workers particularly vulnerable.

Gig and temporary workers tend to get cheated out of their wages, and to get stuck in dead-end jobs with no hope of advancement.

David Weil calls it the “fissured workplace,” as various tasks, some secondary, and some quite central to the business, are outsourced. Weil lead the Department of Labor’s Wage and Hour Division under President Obama, during which time he witnessed, studied, and attempted to mitigate the negative effects of the fissured economy on workers.

The loopholes

When a company outsources labor tasks to another company, such as a staffing agency or a cleaning service, those “satellite” companies have very few ways to cut costs and increase revenue other than squeezing more out of their workers without paying up.

I’ve experienced this myself first hand in a number of freelance or contracted gigs I’ve picked up.

Companies often hire you for certain tasks, paying you a flat rate for those tasks – it seems fair at first, until the company starts requiring you to complete additional tasks, without any additional pay. Don’t like it? Well, they’ll easily find someone else who would be happy to have your job.

So many men in the middle

The more times a job gets outsourced, “the slimmer are the remaining profit margins,” and the more middlemen are taking a cut from the worker’s paycheck.

Sometimes a worker will be several middlemen removed from the central company.

For example, a company could contract another company for janitorial services, who in turn draws workers from temporary staffing agencies or even smaller cleaning companies. Because these workers are one or more steps removed from the central management of the company, they have almost no chance of career advancement or of earning benefits like insurance.

Weil’s resume

While working for the Wage and Hour Division, Weil prosecuted companies who were failing to comply with labor standards, often by misclassifying employees as independent contractors. He created joint employment arrangements wherein “both motherships and satellites had responsibility for their workers.”

Weil also worked with state agencies to enforce compliance and encouraged companies to make voluntary agreements to seal up some of the cracks of their fissured business strategies.

Head on a swivel

Just as workers struggled to secure their rights during the first era of Industrialization, today’s workers will have to stay on their toes to make sure they get a fair shot at a decent life in a rapidly changing economy.

Hopefully the government and businesses will support their efforts.

#GigFair

Ellen Vessels, a Staff Writer at The American Genius, is respected for their wide range of work, with a focus on generational marketing and business trends. Ellen is also a performance artist when not writing, and has a passion for sustainability, social justice, and the arts.

Business Entrepreneur

Is this normal (you wonder about your business)?

(ENTREPRENEURIALISM) It can be lonely not being able to openly ask potentially embarrassing questions about your business – there’s a way to do it anonymously…

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Entrepreneurialism is wildly rewarding – you are fully in control of the direction of your company, and you’re solving the world’s problems. But it’s also isolating when you’re not sure if what you’re experiencing is normal.

Sure, there’s Google, news networks (like ours), and professional connections to help you navigate, but sometimes you just want to know if something simple you’re seeing is normal.

Is Instagram Stories really where it’s at? Probably not if you’re a consultant.

Is it normal for an employee to attempt to re-negotiate their salary on their first day? Nope, but how do you keep the desirable employee without being bullied into new terms?

Do all entrepreneurs spend their first year in business as exhausted as a new parent? Sometimes.

You have questions, and together, we can share our experiences.

We have a brand new Facebook Group that is already wildly engaging, active, and you’d be amazed at how selflessly helpful people are – and we invite you to be one of them.

Want to anonymously ask a question about something you’re unsure is normal or not?

Click here to submit your question, and we’ll select as many as possible to discuss in the Facebook Group!

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Business Entrepreneur

Amazon on a collision course with politicians as they strengthen their monopoly

(BUSINESS) E-commerce has come a long way in the last decade, specifically led by Amazon, but are their controlling ways putting them on a collision course with regulators?

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In March, Amazon stopped replenishing weekly purchase orders for tens of thousands of vendors in a move that has stirred up some trouble. The tech giant has once flexed its power over first-party sellers over their platform. And it’s not the first time.

Amazon originally sent out to vendors as an automated message citing the hold up in orders as a technical glitch. The following day, vendors were told the change was permanent. The affected vendors were categorized as making $10 million or less in sales volume per year and not having managers at Amazon. Vendors selling specialized goods that were difficult to ship were also a factor.

The effects can have remarkable effects on the market as Amazon’s algorithms decide who is able to sell what to whom via their near-ubiquitous platform. According to John Ghiorso, the CEO of Orca Pacific, an Amazon agency for consultation and manufacturers representatives, the decision is driven by financial data such as total revenue, profitability, and catalog size.

In a response from an Amazon spokesperson, the change was made in order to improve value, convenience, and selection for customers. The mass termination of purchase orders and the delayed response from Amazon herald the transition to the One Vendor system, putting vendors in an exclusive relationship with Amazon. This system will merge the current Seller Central and Vendor Central.

Amazon’s message is loud and clear: they will do what’s in their best interest to mitigate the market for their convenience. One may be reminded of the anti-trust lawsuit against Microsoft in 2001.

The lack of warning didn’t do them any favors either.

While smaller businesses need to change for Amazon’s program, first-party business will revolve around larger brands like Nike with whom Amazon is maintaining a relationship.

Despite the streamlined platform Amazon is going for, the company wields power over vendors and customers alike. Capitalism is one thing, but monopolies are a whole other ball game, and politicians are finally paying attention.

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Business Entrepreneur

Culture Codes is the guide you need for company culture questions

(BUSINESS ENTREPRENEUR) One of the biggest sellers of a company to a prospective employee or customer is their culture. Culture Codes has compiled some the biggest companies cultures in convenient decks for you to study and align with.

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culture codes

Organizational culture is a hot button of conversation. While a variety of definitions exist, one way of defining Culture is the way businesses exist – a summary of values, rituals, and organizational mythology that helps employees make sense of the organization they work in.

Organizational cultures are often reflected in Mission, Vision, and Value statements of organizations.

What many entrepreneurs or new organization struggle with as well, is how to create a culture from the ground up. What kinds of statements and values do they advocate? What are areas of focus? Who are our competitors and what can we do to create a service, product, or quality advantage?

Building a strong culture can be challenging, but a good place to start is looking at the best cultures around.

A new resource by Tettra, Culture Codes, has everything you could want to know on different companies their cultures available for you to study up.

Over 40 companies employing over 280,000 employees have created culture decks and collected core values and mission statements. Companies like Spotify, Netflix, LinkedIn, and NASA have all contributed information.

This information is great for young companies or entrepreneurs to start building a schema about what kind of culture they want to create.

Or existing established companies can look towards peers and competitors and help decide what statements they want to engage culture change on.

For job seekers, Tettra can help potential employees gauge if they are a fit for an organization, or discover that maybe an organization they dream about working for has a culture they may not jive with. And perhaps most valuably, transparently showing off your culture and allowing it to be compared means that organizations can better compete in the talent market.

Recruiters should be obsessed with talking about culture – because it keeps people in the door.

The reasons why people leave employment: work/ life balance, poor treatment, lack of training, or relationship issues with a supervisor or boss; in many ways are a by-product of organizational culture. If you want to compete in the talent market, make culture a selling point and show it off in everything you do.

Even consumer’s benefit from learning about an organization’s culture – values that indicate a commitment to excellence in ethics make consumers feel good about supporting an organization.

It pays to have a good culture. I encourage you to head over to tetra.co/culture-codes and see how companies like Etsy are keeping it real, every day.

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