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REMOTE WORK
Remote work may be preferred for some, but the long-term consequences could become devastating
It's no secret that remote working is here to stay. There have been numerous articles and studies about this drastic-and now permanent-change in work environment, and its impacts on productivity and the bottom line. The data rolling in all point to one argument over another, and generally depend heavily on the author's ulterior motive.
Aside from questions concerning productivity, there appears to be a new front-runner remote working hot topic: If everyone can now work from home, what does that mean for employers?
It means you're no longer a commodity. Your job can be given to someone in another country and at half the expense.
In a recent Washington Post article, staff writer Andrew Van Dam referenced a quote from Richard Baldwin, an economist at the Graduate Institute in Geneva, that summarizes the latest trend eloquently: "If you can do your job from home, be scared. Be very scared. Because somebody in India ... or wherever is willing to do it for much less."1
The best way to overcome the new paradigm shift is to understand work environment trends fully. This includes the shift to contractors vs. full-time employees, cloud-based vs. paper operations and hybrid vs. remote or on-site opportunities.
1099 vs. W-2
These days, it seems difficult for businesses to fill their workforce vacancies. According to the U.S. Chamber of Commerce, many people quit their jobs for work-life balance, increased salary and better overall company stability in 2021. In fact, a Gallup poll found that 91% of U.S. workers said they hoped they could continue working some of their hours from home, and three in 10 workers signaled they would seek new employment if they were recalled to the office post-pandemic.2
As a result, many businesses found outsourcing to be the solution. By turning to contractors instead of seeking full-time employees, the shortage of workers and the rise in expected pay no longer were operational hurdles.
"Relative to workforce size, the number of contractor payments in the United States skyrocketed 56% from 2019 to earlier this year, according to data provided exclusively to The Post by the payroll and...