The ‘gig economy’ and ‘the new romantics’

The ground is shifting the foundations of our world@work. New economic models are emerging of mosaic careers where freelancing is the predominant driver of income. In order to flourish workers will have to reimagine their life@work and add skills previously delivered through full time employers. This is the conversation that should be taking place in corporate boardrooms, university classrooms, state legislatures and presidential debates.

Don’t believe me? How did you get to work? Uber? Where did you stay on vacation? Airbnb?

The initial repercussions of the new world@work are being felt in the halls of justice as folks try to fit old definitions of work and workers into new, entrepreneurial business models.

Sarah Kessler writing for Fast Company summarized the dilemma.

“What’s at stake with these lawsuits and protests? The very definition of “employee” in a tech-enabled, service-driven 21st century American economy. Gig economy companies do not own cars, hotels, or even their workers’ cleaning supplies. What they own is a marketplace with two sides. On one side are people who need a job done—a ride to the airport, a clean house, a lunchtime delivery. On the other are people who are willing to do that job. If Uber and other companies are going to be as big as some claim, a new deal has to be brokered, one that squares the legal rules governing work with new products and services. What benefits can you expect from a quasi-employer? What does it mean to be both independent and tethered to an app-based company? The social contract between gig economy workers and employers is broken. Who will fix it, and how, will determine the fate of thousands of workers and hundreds of millions of dollars.”

James Surowiecki writing in The New Yorker described just how difficult it is to define the difference between an employee and an independent contractor.

“We hear a lot these days about the gig economy, but the issue of whether a worker is an employee or an independent contractor has been the subject of intense legal battles for decades. The distinction can be surprisingly hard to make. The I.R.S. has a list of twenty factors that it takes into account, but other federal agencies have different criteria, as do most states. The fundamental issue is usually whether an employer has “control” over the work being done, but defining control isn’t always easy.”

This is where it begins in the U.S., in the court system. Meanwhile, entrepreneurs will continue to connect clients with products and hire workers who will supplement their income performing a variety of part-time professional services. Eventually the laws will catch up with the workplace reality. But in the interim, universities have to decipher the emerging skill set and prepare the next generation of workers for success.

Joseph Aoun, President of Northeastern University in Boston conducted an informal survey of the university community, tweeting the question, “What skills will graduates need for success in the gig economy?”

“…we can see five skills that will be invaluable for thriving in the gig economy:

Generativity: How to create something unique, be it a product, a service, or an idea. E.g., coming up with the idea for a widget.

Entrepreneurship: How to spot an opportunity and act on it effectively. Discovering a market for widgets.

Originality: How to view an existing subject through an unexpected lens. Realizing that the widget can be made more sustainably from recycled water bottles.

Interdisciplinary thought: How to bridge concepts from different fields to form new ideas. Combining engineering and design so that the widget is not only functional, but beautiful.

Dealing with ambiguity: How to confidently address a problem with no clear solution, often by using a blend of experience, intuition, and grasp of human nature. Faced with plunging stock prices, reinventing the company as a widget-sharing app.”

The ‘new gig workers’ will also need a basic understanding of business law and finance. Arun Sundararajan writing in The Guardian assesses the micro and macro implications of the new model.

“There’s certainly something empowering about being your own boss. With the right mindset, you can achieve a better work-life balance. But there’s also something empowering about a steady pay cheque, fixed work hours and company-provided benefits. It’s harder to plan your life longer term when you don’t know how much money you’re going to be making next year.”

In many countries, key slices of the social safety net are tied to full-time employment with a company or the government. Although the broader socioeconomic effects of the gig economy are as yet unclear, it is clear we must rethink the provision of our safety net, decoupling it from salaried jobs and making it more readily available to independent workers.”

Fundamentally, the new ‘gig worker’ will focus on human interaction vs. transactional activities. We are back to the core curriculum of a liberal arts education. The lawyers, politicians and business folk will figure out the structure and protections. The humanists will find job security in the ‘gig economy’.

David Brooks writing in The New York Times imagines the new world@work.

“What are the activities that we humans, driven by our deepest nature or by the realities of daily life, will simply insist be performed by other humans?”

“Secure workers will combine technical knowledge with social awareness — the sort of thing you get from your genes, from growing up in a certain sort of family and by widening your repertoire of emotions through reflection, literature and a capacity for intimacy.”

“I could imagine a time when young thinkers discard the strictures of the academic professionalism and try to revive the model of the intellectual as secular sage. I could see other young people tiring of résumé-building do-goodism and trying to live more radically for the poor. The romantic tries as much as possible to ground his or her life in purer love that transforms — making him or her more inspired, creative and dedicated, and therefore better able to live as a modern instantiation of some ideal.”

Gig learning is lifelong learning. We will need leaders in both education and business who will welcome the feedback of their constituencies and be nimble in their response to a world@work that is driven by human interaction in the relational and supported by technology in the transactional.

The week@work – Nail salon workers, Sally Mann, sacrifices of the successful and Dan Abromowitz shares his potential job list

The dominant story of work this week was told in a two part series for The New York Times, ‘Unvarnished‘, by reporter, Sarah Maslin Nir, “examining the working conditions and potential health risks endured by nail salon workers”.

“Once an indulgence reserved for special occasions, manicures have become a grooming staple for women across the economic spectrum. There are now more than 17,000 nail salons in the United States, according to census data. The number of salons in New York City alone has more than tripled over a decade and a half to nearly 2,000 in 2012.

But largely overlooked is the rampant exploitation of those who toil in the industry. The New York Times interviewed more than 150 nail salon workers and owners, in four languages, and found that a vast majority of workers are paid below minimum wage; sometimes they are not even paid. Workers endure all manner of humiliation, including having their tips docked as punishment for minor transgressions, constant video monitoring by owners, even physical abuse. Employers are rarely punished for labor and other violations.”

The series received an immediate response from the New York governor.

“Gov. Andrew M. Cuomo ordered emergency measures on Sunday to combat the wage theft and health hazards faced by the thousands of people who work in New York State’s nail salon industry.

Effective immediately, he said in a statement, a new, multiagency task force will conduct salon-by-salon investigations, institute new rules that salons must follow to protect manicurists from the potentially dangerous chemicals found in nail products, and begin a six-language education campaign to inform them of their rights.”

In a follow-up report for The New Yorker, James Surowiecki examined ‘The Economics of New York’s Low Nail-Salon Prices’.

“…one of the most surprising, and economically telling, facts in the piece is also among the most mundane: namely, that the price of a manicure hasn’t budged much, if at all, in the past two decades.”

“What the nail-salon owners have done…is to pay their workers much less than a market wage. Maslin Nir’s nuanced account of who nail-salon workers are and how they live helps explain just how the nail salons are doing this: they hire workers who have fewer choices for employment because of language barriers, immigration status, and so on. These workers also have less bargaining power, and many are presumably leery of using the legal system to gain redress, which gives nail-salon owners the freedom to violate minimum-pay and overtime laws with little fear of being punished. The result is that these salons can stay profitable and still keep offering their customers the same low prices for decades. From this perspective, the cheap manicures New Yorkers have been getting have come, quite literally, at the expense of nail-salon workers.”

These articles, letters to the editor, media follow-up combined with good old fashioned customer guilt, will hopefully continue a conversation to improve the working conditions of these folks whose day is spent making others feel beautiful.

In other news this week@work:

Charlie Rose interviewed photographer Sally Mann. In an exchange taped for the CBS Morning News they shared their mutual concept of work: “In the end it’s love and work. Work to find your place so you can stand and leave your mark.”

Lifehack, a productivity and lifestyle blog reported on the ‘8 Things Successful People Sacrifice for Their Success’: “time, stability, personal life, sleep, health, quiet times, sanity and immediate desires.” 

Writer and comedian Dan Abromowitz shared a list of ‘Jobs I’d Be Well Suited For’ in The New Yorker, “As part of my current job hunt, I conducted a thorough inventory of my unique skills. From that, I’ve generated a list of professions at which I believe I’d excel. Please contact me if you are recruiting for any of these positions.” 

A sampling: “History Channel alien expert, Lobbyist, if that meant what it sounds like it means, Night watchman at Sleepy’s & Night watchman at the Museum of Natural History, provided that “Night at the Museum” is true, but lower-key than that.”

We are now in the ‘high season’ of university commencements. NPR has collected ‘The Best Commencement Speeches Ever’ from their archive. “We’ve hand-picked over 300 addresses going back to 1774. Search by name, school, date or theme, and see our blog n.pr/ed for more.”