I want to be contigent. Sounds weird, right? But I am not alone. I don’t want to be tied to one company and their whims and follies. I don’t want to change my world when they decide to change theirs. I want more control. And it appears workplaces are on board with this. But there are a couple of issues…and one is regulation.
A good friend of mine from college was working last year. She had found a contract job she really liked, they liked her. She got to work where, when & how she wanted. She was excited. They were excited. Until 1 year later when the legal department descended. It turns out, she can’t work for them anymore. Because the government says they would need to hire her on as an employee, offer her health benefits, and collect taxes from her directly – which is way easier than making sure she files quarterly.
She doesn’t want health benefits, she has been paying her taxes. She just wants to do good work and get compensated for it.
Nope – no such luck. She is now looking for a new job that allows her to work where, when & how she wants and needs to. The company is now looking for a new worker with skills like hers that they can hire- probably again for just one year.
Seems foolish doesn’t it.
I understand the basic reasons behind the laws. I was around in the 80′s & 90′s. I remember companies trying to save money and hire temporary workers on a nearly full-time basis to save money on benefits. I get it. Except there are many of us who want to work on our terms and companies who would like to hire us on as independent contractors. We don’t want the health benefits that this law is forcing the company to give us. And here is where I get excited and cautious. Health care reform. Excited because if health care reform stays in place by 2014 we may no longer be afraid to change jobs/employers. I may no longer hear, “No, I don’t like my job, but I can’t risk giving up my health insurance.” Cautious because none of us knows what form Health care reform will take by 2014.
Did you know that health care as an employee benefit really started during WWII as a way to attract and retain workers during wage and price controls? So some employers decided it would be a competitive hiring advantage to add health care to the total compensation package for their employees. And the rest of the dominoes fell into place. Well I and others believe those same dominoes will start falling again…just the other way.
Did you know that today, this very day, many employers are crunching numbers and looking at dropping healthcare as a benefit between now and 2014? Now stop panicking. They are not going to just drop it and give you nothing in return. They’re looking at adding compensation to make up for it. And why 2014? Because that’s when some taxes on healthcare benefits hit them and they’re thinking they’d rather give that money to you and let you decide how best to use it.
I was fortunate to help promote and therefore be invited to listen in on a webinar the Corporate Executive Board’s Corporate Leadership Council recently gave on this topic. It was quite interesting. There are lots of factors being considered. No one really knows what will happen next.
But honestly, wouldn’t you like to work for who you want, change jobs as you see fit and work contingent if you’d like? Yeah, me too and so would my good friend from college. We just can’t right now…at least not for more than one year at a time.
Oh, and on the tax issue. No worries. If you’re a global company, just do what other global companies are doing. Make your contingent workforce employees of one of your overseas arms. No tax legal issues then.
If you’d like to learn more about the future of the American workforce and changes a foot regarding contingent workers check out the video to the right by Susan Burns and Master Burnett from Recruitfest last month.