Clarion Communications

Posts Tagged ‘unemployment’

The numbers are in: as the business environment has become more difficult, senior management in many companies has had to take a very serious look at every possible cost-cutting exercise. In this environment, every facet of American business at large has come under cost reduction scrutiny. And as recent unemployment numbers show, the employee is not exempt from this investigation.

In many instances, management has found it difficult to justify the employee’s salary. In many organizations it is difficult, if not impossible, for a firm to assess the true value of a worker. As they have attempted to determine costs and consider cheaper alternatives, outsourcing work to independent contractors has become a viable option. Since it is difficult for a company to assess the real value of its employees, it never knows whether it is getting value for its money. Nor does the employee know if he is being paid his true market value. By forcing staff to compete as contractors against all other suppliers in the marketplace, then, the business firm is better able to gauge the value of the people it hires. And the workers gain by being able, first, to assess the value of their contribution by comparing with their competitors, and second, by being able to take on additional contracts.
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