The ability to work from home, as an independent contractor, or as part of the gig economy are all part of a fast-changing world of work. Because of technological advances and workplace flexibility, many employees are no longer stuck in a rigid 9-to-5 schedule with a boss or manager hovering over their every move.
They work as freelancers, independent contractors, or consultants. Or they work full-time for an organization, but work solely from home. The flexible work movement is in full force. It’s a beautiful thing. Unless government gets involved. And that just might happen.
According to a new Competitive Enterprise Institute, or CEI, report titled: Punching the Clock on a Smartphone App? The Changing Nature of Work in America and Regulatory Barriers to Success, “regulators are taking action against the work preferences and aspirations of people in 21st Century America.”
“Instead of a 9-to-5 job and punching the clock, people have a new American dream of work that offers greater flexibility, autonomy, and opportunity than ever before,” said Iain Murray, CEI’s vice president for strategy. “But government labor regulators are imposing rules that make modern forms of work and business—like contracting, franchising, and freelancing—more difficult.”
The report explains how a spate of new regulations based on 1930s laws are aimed at discouraging flexible work arrangements and business ownership. Those regulations include the National Labor Relations Board’s ruling that expands joint employer liability over work conditions and terms, the NLRB ambush election rule that makes unionizing a workplace easier, and the U.S. Department of Labor rule expanding the federal overtime pay mandate.
“Regulators and labor unions want to see a return to large, corporate business institutions, making it easier to regulate and impose wage and benefit mandates,” Murray said. “But regulators should not be permitted to shove aside the work opportunities Americans want and strive for.”
Flexibility and Productivity
Diane Mulcahy is a workplace flexibility advocate and the author of The Gig Economy: The Complete Guide to Getting Better Work, Taking More Time Off, and Financing the Life You Want.
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“There is no evidence that a 40-hour week in an office is the most productive, efficient, or best way to work,” Mulcahy said. “Most studies indicate that workers in flexible and results-only work environments are more satisfied, happier, more engaged, less likely to quit, and more productive.”
Tapping into the gig economy is a recipe for business success, said Tim Arnold, CEO and founder of Fyre, an Orlando, Florida-based software company. Fyre develops software that’s designed to empower staffing agencies and human resources teams with the tools they need to simplify and speed up the candidate search and placement process.
“As a business owner, tapping the expertise I need when I need it lets me accelerate growth and tackle opportunities we wouldn’t be able to otherwise,” Arnold said. “For example, when we tap Salesforce experts for help in architecting new applications, hiring that level of employee full-time would be way too high of a burden.”
The gig economy and flexible work offer these benefits, Arnold said:
- On-demand work for when you have downtime or to earn some quick cash (as many do with Uber on holidays or weekends).
- Flexibility to create your own schedule and work as much (or as little) as you please.
- Greater experiences, as you get to take the projects that interest you from a variety of clients or opportunities.
Kathryn Sollmann is the founder of 9 Lives for Women, a consultancy that helps women find the work that fits their lives at every age and stage. She is a recognized flexible work advocate: last May she held the Make Work Fit Life conference in Stamford, Connecticut, drawing 200 women. Sollmann has also created an online course to help women nationwide: Find a Flexible Job & Make Work Fit Life.
She, too, understands the benefits of flexible work for both the employee and employer. And especially for women.
“It is in the best interest of employers to offer flexible work to all employees—but especially for women who still shoulder most of the responsibility for child and aging-parent caregiving,” Sollmann said. “Flexible work gives women the opportunity to blend their professional and caregiving roles and stay in the workforce. When they do this, employers keep high-potential women who fill their talent pipelines for C-Suite and other leadership roles. Companies need leadership diversity, and our economy benefits from greater workforce participation from women.”
Longer Careers
Flexible work also gives women opportunities to work long past the traditional corporate retirement age of 65. Women live longer than men, take more career breaks, and, as a result, participate less in 401(k)s and other savings vehicles. Women often face many financial challenges later in life.
“Freelance or project work—or part-time jobs—can make women employable for longer periods and prevent them from outliving their money,” Sollmann said.
The CEI report describes how business innovations from the 1950s onward, from the creation of franchises to the latest smartphone app, have vastly expanded diversity in new business and work opportunities. Tellingly, Internal Revenue Service data shows a 22-percent increase in 1099 tax forms, most often used by contractors and other self-employed people, since the year 2000. Meanwhile, W-2 tax forms, which signify traditional wage employment, have stagnated.
“Our existing labor policies do a great job of supporting traditional full-time employees in traditional full-time jobs, but a less great job supporting the growing number of contractors, consultants, freelancers and on-demand workers that increasingly make up our workforce,” Mulcahy said. “As the gig economy continues to grow, our labor policies need to be updated to support all workers—no matter where, when, how, or how much they choose to work.”
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Readers, what is your stance on workplace flexibility? Do you have a flexible work policy? Tell us in the comments below!
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