Manjoo, Farhad. Start-Ups finding the best employees are actually employed. Personal Tech. The New York Times, June 24. 2015. http://www.nytimes.com/2015/06/25/technology/personaltech/start-ups-finding-the-best-employees-are-actually-employed.html?ref=business&_r=1
This article evaluates the rationale of hiring workers in a company as independent contractors or treating them as fulltime company employees. Recently, the California Labor Commission made a ruling that Uber drivers should be considered as employees but not contractors. This decision has pushed different companies to evaluate their employment policies to ensure that they provide the best services to their customers while reaping maximum benefits in revenues.
The employment policies are far much better than the contract model. When the workers are hired through contracts, they are just mindful of their expenses, taxes and benefits that they reap from the company, without being any active to provide the company with a competitive edge. Still, the company is not able to dictate how the contractors executives their duties in a given project. On the contrary, employees are usually commanding on the income generated by the company. They remain focused on the long-term objective of the company since their job are secured with favorable benefits. It means, therefore, that providing an extra skill either through training or guidance will translate into a positive impact to the company. For instance, the employees at Beepi, a company that majors on selling and buying of used cars online, register its employees after undergoing three months training as “Beepi Certified” a move that would be unachievable when dealing with the contractor model.
Internal Revenue Service suggests that the company should not regulate the operation of the workers in a contractor model. It means that if the on-demand companies such as the Instacart and Munchery embrace employment plan, they may run in a transitional nature without encountering the inefficiencies and unreliability of the contractor models. Moreover, an elaborate employment policy creates meaningful ways of settling employees’ wages without risking the budget of the company.
Analysis of the Employment Laws
Amid the increase in the labor demands, many organizations are forced to employ distinct employment policies to ensure that the workers’ demands do not threaten their financial power. On the other hand, the importance of providing the employees with good remunerations is greatly addressed to prevent exploitations or harassment of the workers. The above article indicates some of the areas where different organizations are keen about to sustain their productions. With the continuous changes on the nature and structure of the employment, the demand of preparing the workers for these changes increases rapidly. The situation underlines the problems created when trying to match the working behaviors of the company to the size of the available workforce.
For a long time, business necessity has been subject to numerous court decisions. There are several employment concepts clarifying on the employment policies that companies should embrace to retain best operation practices while upholding the interests of its workers. For instance, Business Necessity and Job Relatedness is a practice that emphasizes on safe and reliable organizational activities (Mathis and Jackson 27). This will entail deploying workers for a given task based on their skills. In such a case, the worker must defend the entitled wage by giving the company the appropriate services in a particular task. In the above mentioned article, Mr. Johnson who is the head of the Enjoy Company is convinced that having real employees is cost effective and sensible in terms of working to attain a long term objective. In fact, an employment model will not only ensure that the work is done, but it will methodically match a given task with qualified persons to do it. Mr. Johnson also feels that working with real employees may necessitate training these employees to remain in line with the technological developments. Essentially, it is hard to implement a training program for workers under contracts since they operate as an independent body. In such a system, the persons in charge might work terribly since their objective is to ensure that the work is done within the time stipulated but not minding the long-term impacts on the project to the organization. This logic could have attributed M. Diane Burton from the Cornell University suggests that the long relationship with the employees can create competitive advantage, hence attributing to benefits to both the company and the employees. The benefits mentioned above could only be attainable in the system where the company recognizes the concept of Business Necessity and Job Relatedness.
Bona Fide Occupational Qualification (BFOQ) is a concept that covers matters of employees’ discrimination on the basis of sex, religion, or the national origin. The employer is legitimate to exclude an employee if the reason attains a bona fide occupational qualifications but not on other illegal bases. This concept has gained different interpretations in the businesses and organizational related cases where the court decisions have caused a significant amount of criticism. For instance, Asian employees could prefer their people serving to the Asian customers rather than having Catholics serving the Asians. However, the European Union has implemented policies that relate that emphasizes equal treatment of the workers on the grounds of sex, religion and race. According to Mathis and Jackson (2012), “The employment regulations range from the health matters to the employees’ wages and protection of the part-time workers” (130). The above article indicates that offering stable careers to the employees will help in delivering the best services across all networks of the customers. Applying bona fide occupational qualification in hiring workers for on-demand companies will inject employees’ vigor in providing the best services to their customers. Moreover, if a company has established a minimum base wage for its employees irrespective of their sex or race, it would create good relationship with the employees as well as with the organization management. With most companies exercising the bona fide requirements by providing part-time employment to some employees, they should also embrace concrete systems of meeting the demands of such employees without requiring them to get to desperate states to be attended. Alternatively, the company should inform the industrial court on any matters that could necessitate induction of the bona fide requirements in altering the operations or the wages of the employees. The California Labor Commission suggests that the organizational management should get consent from the employees or the contractors before considering making changes in the initially agreed working behaviors.
The issue of discrimination generates Burden of Proof concept whose sense is to excavate the discrimination proofs (Mathis and Jackson 30). Anyone who files allegations of discrimination by the employer is required to establish proof that the action was propagated. Current regulations by the European Union indicate that the person charging the allegations must be categorically protected and have a legitimate prove that the employers behaved awkwardly. In case there is adequate evidence that employee was singled out in one way or the other, the employer should pronounce the conditions that instigated the decision. In many organizations, the employers may be inclined to act against the expectations of the employees with a justifiable reason. For example, a company might axle some of its workers as a result of efficiencies provided by the digital technology. In such cases, the employers might present their case based on the business necessities. Alternatively, disparities in the level of knowledge among workers could be applied to draw the line of laying off some workers since there is could be impossible for the company to tolerate poor performance at expense of its workers. From the article above, it is clear that if Instacart shifted from the independent contractors to part-time employment, the company would remain in sound financial position and maintain its competitive edge. Changing the operation does not mean that the workers would be denied their rights, but it could give them an appropriate balance to acquire health coverage. Therefore, if questions on the changes in the strategic operations practices could emerge, the concept of the burden of proof would ground on the necessity and the objectives of the company. In such a case, the corporate policies can create a reliable business metric.
In Non retaliation concept, “the employees are restricted from revenging over the individuals who could file discrimination charges” (Mathis and Jackson 33). In some cases, the filing discrimination charges serve as awakening factor to the organizations that assume the rights of their workers. Reported harassment, poor working conditions or unfair payment could incline the employee to file charges in the industrial court. Instead of taking punitive action against the employees accusing the company, the management should evaluate the allegations made and work in smooth the situation for the interest of the company. For instance, the organization might focus to venture on the capitalist market by subjecting some worker to part-time operations while others remain on the full-time basis. Depending on the preferences of the workers, some may not be comfortable to work on shift basis; feeling frustrated by the company. If these workers could file some allegations against the company, the company should look into ways of creating stable careers for their employees. Similarly, the company should consider other elements before terminating the agreements of a contract since there parties involved could have different interests. From the article above, Mr. Johnson calls for the moral obligation of doing what is right for the workers. The same spirit should be employed by other companies when dealing with the employees.
From the above article and this topic in employment law, some may wonder: How would one know whether the employer would be reliable, efficient and friendly before accepting an offer for the employment opportunity? This question is most likely to come from fresh graduates who are eager to start their careers soon after leaving universities and colleges. There are high risks working in a new environment since the pressure of attaining personal goals while abiding by the working policies and ethics of the organization are high. Similarly, new entrepreneurs could have questions like: How does one deal with the workforce segmentation in laying the technology development while sustaining the working regulations and principalities of dealing with the employees? This area would require intensive evaluations to ensure that the interests of all the parties involved are sustained while keeping the business in the right direction.
Mathis, Robert L, and John H. Jackson. Human Resource Management: Essential Perspectives.
Mason, Ohio: South-Western Cengage Learning, 2012. Print.