The (Overdue) Collapse of the 9-5 Job

companies are doing Mass layoffs while complaining about not being able to find enough employees some workers are min-maxing the system by working multiple fulltime jobs at the same time While others need to work hours of unpaid overtime at just one job this is not to mention that the gig economy is consuming entire sections of the workforce the N toi was created by American labor unions in the 1800s and became mainstream over 100 years ago when jobs looked like this and this it was revolutionary for its time but how many of the modern problems in Corporate

America are caused by trying to make an outdated system fit with every single modern job to the US 8.4 million people in the nation are working multiple jobs 850,000 jobs wages went up for American workers instead they're working multiple jobs it's called being over employed and one parttime but I need both of them to uh pay my bills every month my rent and groceries so just working all the time a report by the management consulting for McKenzie company found that 2/3 of the average human's wealth is in the work they can do over their lifetime

everybody has time effort and experience they can trade for money and those tradable Commodities are worth twice as much as all the other assets that the average person possesses a regular 9 to-5 job has been a great way for billions of people to safely exchange a predictable amount of their time for a predictable paycheck with predictable career advancement as they gain more experience but this one- siiz fits-all model for work doesn't fit with every job and trying to make it work has been bad for employees and bad for companies for three reasons which is causing

three equally terrible Trends in the job market the first trend is that it makes time a worthless asset the Ford Mor company was one of the first businesses in America to adopt the 9 to-5 40-hour Work Week Henry Ford did this to make his company the most attractive place for Auto Workers to get a job this allowed him to pull Talent away from other automakers without paying his workers more in order to compete with Ford other automakers were forced to offer the same 40-hour work week with paid overtime eventually in order to compete with the

automakers other companies were also forced to offer 9 to-5 jobs so that their best workers didn't quit and go and work on the car assembly line these Auto Workers had tightly defined in repetitive tasks so unless the workers succumb to exhaustion they could do a consistent amount of work for every hour they spent at their post and every additional hour would produce the same amount of output if you work in a modern office job you will know that your work is nothing like this sometimes there is a lot to do and sometimes there is nothing

to do but you still need to be there 8 hours a day looking busy no matter what back when the 40-hour week was being fought for by workers unions most Americans worked in manufacturing but today most people work in the services sector which is more diverse than you might expect unless you are working on a farm or in a factory you are a service worker and your job could be anything from making strategic corporate decisions to making coffees clearly these jobs are very different and should have a different schedule but most of the corporate world

has tried to make the 9 to-5 fit all jobs but this doesn't work because no service jobs have tasks consistently delivered on a fine-tune production line work comes and goes as internal and external customers make demands and that means when people are busy and need to do more than 8 hours in a day to finish their work they are expected to work quote reasonable unpaid overtime according to an ADP Research Institute study of office professionals paid overtime jumps to an average of 99.2 hours per week in 2021 more than a full extra day to keep

up with employer demands but when there is little to no work to do because a project has just been completed or sales are seasonally slow workers are still expected to put in the 40 hours a week because that's what the business is paying them for if you're in this kind of job your best option is to try and find something that makes you look busy but if you don't have something to work on you are probably going to be given meaningless tasks just to fill the mandatory 8h hour day if this was just another story

about companies screwing over their workers with outdated business practices it wouldn't need a video but the 40-hour work week isn't even good for companies so it's time to learn how money Works to find out why we might be in the midst of the overdue collapse of the 9 to5 this week's lesson was sponsored by manscaped it's time to throw away that bulky beard trimmer you've been using for years and make an upgrade because manscaped is going full head-to toe grooming with their beard hedger Pro kit with a powerful 7200 RPM Motor and titanium coated tea

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have become very popular with unskilled workers due to their low barrier to entry and flexible working Arrangements someone with a phone and a bike can start working for a food delivery service like Uber Eats Postmates door Dash GrubHub or all of them all at the same time in less than an hour by filling out an online form this has been a highly appealing alternative to minimum wage jobs that still rely on the Antiquated process of hting in a resume spending weeks doing job interviews only to still get get ghosted by a fast food joint offering

725 an hour for an unpredictable schedule Gig work jobs usually also pay terribly but people get to work as much as they want when they want and they can work around another full-time job for extra money even with all of the problems of gig work you can see why it has become so popular the popularity of freelancing and private Contracting has also exploded this is more popular among skilled workers who can sell their services to businesses just like an employee but with no ongoing agreement they are only paid when there is work to be done

private contracts are usually an agreed upon price for an agreed upon outcome like $10,000 to build a company website but they can also be built hourly for rules like Security Administrative Assistance or on demand workers according to a report by the management consulting firm Oliver Wyman healthcare workers have been one of the fastest growing groups of workers ditching typical permanent roles in favor of working as private contractors on call nurses doctors and Hospital support staff already work on predictable hours so they don't sacrifice much by working as contractors instead of a direct employee according to

the report some nurses have elected to work in the temporary staffing market so they can take on fewer hours as mental health has become a top priority for workers in the industry private contractors in all Industries are usually paid more for their time than permanent employees because the business only pays for the hours of services they actually need which means most of the time their total out of pocket will be lower with mass layoffs dominating the new cycle people are also finding out the hard way that if they work in an out will employment State

their 9 to-5 doesn't give them much security anyway so workers at all skill levels are seeing they can make more and businesses are realizing they can cut down on expenses by doing away with the rigid 9 to-5 workday which is the second reason it's slowly becoming a relic of corporate history but the death of the 9 to5 is not going to be a good deal for everybody unfortunately for now businesses are going to be the biggest winners out of this shift even if they have to pay their contractors and gig workers slightly more per hour

the first loss is benefits if you work as a private contractor you are becoming Your Own Boss which means that even though you are making more money there is overhead that you become responsible for benefits like paid time off training retirement plans accounting and health insurance are going to come out of your pocket health insurance through a regular employer is normally far more affordable than private options for Gig workers this can be especially tough because health insurance premiums for people who ride motorized scooters through late night traffic to deliver food to people's homes is simply

unaffordable on the income of a delivery driver even if you are doing highly skilled Contracting if you don't manage these expenses carefully you will end up with less in your pocket than if you just stuck with a regular permanent position and your loss is their gain according to a survey conducted by Forbes small and medium Enterprises were hiring more contract workers because it simplified their accounting and reduced the ever increasing expenses of human resource management it's not just small companies either according to CNBC contract workers have outnumbered direct employees at Google and other large tech

companies since 2018 and the ratio became even more skewed during Co Google already has large human resources and accounting departments so they are pursuing contract work for two other reasons the first is that the most talented Engineers have realized that they can make more money working off one-off projects for lots of companies than they could by being a full-time employee with just one company the demand for talent during the good times meant that these companies just had to pay what these top Engineers were at asking some highly specialized Engineers could build up to $10,000 an

hour for their work to these companies even for a company as rich as Google it was better to pay them only for the hours they really needed them instead of paying them millions of dollars a year as a permanent salary for the odd project where their skills would be needed the second reason is that during bad times like right now getting rid of contractors doesn't count as layoffs so companies can easily cut expenses without technically laying off any staff big layoff signal to investors and other employees that the the business is in a bad shape

and that they would be better off investing their money or building a career somewhere else there are three groups that are really going to benefit from the death of the 95 but their gain is all at the expense of one big group that statistically you are a part of the regular workers entry-level workers who can get gig work are not paid well but they weren't paid well in minimum wage jobs either they have just gained some flexibility to work when they want high- skilled workers who can move to contract roles can make a lot of

money by working for the highest bidding company they only lost the idea of job security that never really existed for them anyway companies are also taking full advantage of the death of the 9 to5 by cutting down on their biggest expense Center the losers are regular workers right in the middle who are in rules that can't be Gigi but aren't in demand enough to be contracted out the fixed expenses of operating as a contractor health insurance business licensing accounting and everything else means it's only worth it for people earning well over the average wage if

you are earning $60,000 as a permanent employee you would have to charge $80,000 a year as a contractor to break even and not many businesses are going to pay that $20,000 premium for a standard job new regulations intended to protect contractors and workers are another problem if a contractor files for unemployment after their job is completed with a company they can file an ss8 form with the IRS which can trigger an audit to determine if that contractor and other contractors working for the company meet their requirements to be counted as a permanent employee if they

do then the company has to cover their unemployment benefits and has to provide other benefits to every other contractor in the business as well businesses don't want to take that risk so they use staffing agencies to handle all the compliance for them according to data from the American Staffing Association most contractors now work through middleman staffing companies for contractors working through these middleman it can combine all of the problems of permanent employment with none of the benefits of being a private contractor and that's the third reason why the 9 to5 is going extinct it lets

companies pull some creative business Maneuvers the Age Care industry has been one of the biggest victims of this shift go and watch my latest video on the deadly monetization of nursing homes to see how contract Staffing is being used as a tool to maximize Returns on a failing business model as someone who's done Contracting work time to time in the finance space I will be writing an article on how to make the most out of these risky rules over on my totally free email newsletter compound a daily so make sure to sign up at the

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