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Are we building a ‘McJobs’ economy?

By | December 10, 2009, 10:04 AM PST

The temporary industry is being slapped around again. But is contingent work a microcosm for a bigger shift in career mobility?

One of the first signs of economic recovery is the hiring of temporary workers — as business increases, companies will contract for temps first to fill their needs, rather than commit to hiring more full-time employees. Companies added 52,000 temporary jobs in November, according to the Bureau of Labor Statistics, and since July, temporary employment has been growing from month to month, totaling 117,000.

“McJobs,” many observers sniff.

It seems more of our economy relies on “temporary” employment arrangements — and this includes involuntary short-term job engagements. For many observers, “temporary” employment is a sign of something rotting underneath the surface of the economy. As Umair Haque, director of the Havas Media Lab, put it: “The lion’s share of the gains came from (wait for it) ‘temporary help services.’ See what just happened? We subtracted thousands of real jobs — and replaced them with low-value, no-future McJobs instead. Want fries with that so-called recovery?”

Many people seeking full-time jobs have been forced to work in the temporary sector. In many cases, these types of jobs do not help sustain a viable standard of living. However, for others, temporary employment — whether formally through an agency or on a freelance basis — has meant increased career flexibility and mobility. It also provides a way to get a foot in the door of a prospective employer.

For many businesses, temporary staffing has been an agility strategy. But the “temporary” label always had mixed connotations in business settings, and even within the temporary staffing industry itself. One of my best clients last decade was The Olsten Corporation, at the time the nation’s second-largest provider (behind Manpower) of temporary staffing. Within the highest echelons of Olsten, however, was a running debate pertaining to the term “temporary.” Various terms such as “contingent employees,” “assignment employees” and “just-in-time” staffing were used to describe these roles.

But the fact of the matter is that temporary is the mainstream of business strategy and business thought in many ways. Simply put, temporary is a fact of life for business. This is happening across the entire business spectrum. Many of today’s projects are managed and completed by ad-hoc teams that form to address a problem, then disband as team members move on to the next challenge.

We see this at in the technology space as well. Computer equipment is disposable. In the past, most applications were “built to last” — their longevity and robustness was the most prized features about the application. However, nowadays, the most important thing about an application is that it is “built to change.” The goal is not to expend time and energy building a system that will last through the ages, but build a supportive infrastructure that will easily accommodate change, and temporary or ad-hoc applications (now via the cloud), that can be swapped out as needed.

Temporary is a fact of life for professionals as well. Even those in “permanent” jobs may find themselves doing something radically different — even if its still within the same organization — within a few years’ time. Some companies with forward-looking employment policies also acknowledge the “temporary” nature of job assignments, and are able to strike a balance between the need to build a good relationship with employees, while the need to change and shift roles according to priorities.

Kim Lamoureux, a corporate leadership development consultant, calls this rising tide “talent mobility,” in which people are systematically moved to new areas as required by fast-changing business requirements. “One of the biggest success-drivers in enduring organizations is their ability to rapidly and transparently move people from role to role and function to function as business needs change,” she observes. “To do this requires a new way of thinking about and managing talent.”

For example, Lamourex says Deloitte, the large accounting and consulting firm, enables employees to build their own “customized careers,” moving at their own pace through the ranks with various workloads and responsibilities.

Organizations are relying more on contractors, consultants, and contingent workforces to get things done as flexibly as possible. Even full-time employees are finding themselves more in a “internal contractor” role, moving on to and addressing opportunities and challenges as the business changes. As with computer applications, careers and job roles shouldn’t be “built to last,” but “built to change.”

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Joe McKendrick

About Joe McKendrick

Joe McKendrick is a contributing editor for SmartPlanet.

Joe McKendrick

Joe McKendrick

Contributing Editor, Business

Joe McKendrick is an independent analyst who tracks the impact of information technology on management and markets. He is the author of the SOA Manifesto and has written for Forbes, ZDNet and Database Trends & Applications. He holds a degree from Temple University. He is based in Pennsylvania.

Follow him on Twitter.

Joe McKendrick

Joe McKendrick

Joe McKendrick is an independent consultant and editor. Joe has performed project work for the following companies in the IT marketspace: IBM, Systinet/HP, Teradata. He has performed project work for the following organizations in partnership with Unisphere Research (Unisphere Media): IBM, Oracle Corp., International Oracle Users Group, Oracle Applications Users Group, Professional Association for SQL Server, International DB2 Users Group, International Sybase Users Group.

He writes for SmartPlanet and is not an employee of CBS.

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0 Votes
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Who in their right mind would risk hiring permanent employees now?
Congress is on a regulatory rampage and "health care reform" and "cap-
n-tax" are high cost possibilities. It's impossible to come up with a
business plan anyone has confidence in when the long-term costs of
capital, labor, and just existing are in such flux.

Unless you're one of the industries (or companies) that has a page or
two of "protection" in the thousands of pages of legislation currently
before Congress, nobody feels safe enough to go out on a limb and
permanently higher anybody.

We're not going to see any kind of real "recovery" until Congress is
slapped down, like it was in 1992.
Posted by JohnMcGrew@...
11th Dec 2009
0 Votes
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Ease up on the hysteria
Temp jobs can be a good way to get your foot in the door for a permanent job. It can also provide more money than unemployment. When I was unemployed a few years ago, temp jobs halped keep my skill sets updated as well as help me to keep from running out of unemployment funds.

The changes in temp jobs and unemployment are more in line with the change in industries and not so much in government actions. The big industry changes have been to send our manufacturing overseas and outsourcing jobs.

The rant against congress never changes, but it is not congress that makes jobs. The job market changed dramatically in the past 30 to 40 years. It has gone from having a job for life to going from one employer to another due to layoffs and poor business practices. Another factor to consider is the disparity in pay between the highest and lowest payscale of corporations.

Congress as it functions now is very dysfuntional because of extreme polarization that ties up any real reform. It has been this way for several years if not decades. In spite of this, smart people and businesses can be successful and profitable. Those who can adapt will thrive and those who can't will complain and fail.
Posted by sboverie
11th Dec 2009
0 Votes
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You're right: Congress does not "create jobs"
But they certainly can discourage them, as they have been for at least the last 2 years.

But don't take my word for it. Look what "cap-n-tax" has done for jobs in Europe: http://eureferendum.blogspot.com/2009/12/money-for-old-carbon.html

The rich and politically connected get richer, and more jobs move to India and China.

The more we allow these jokers to "manage" our economy, the more of this nonsense we're going to get. I'm all for extreme polarization that results in gridlock. It's exactly what made Reaganomics work in the latter half of the '90s.
Posted by JohnMcGrew@...
11th Dec 2009
0 Votes
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How does this work for you?
The article is about temp jobs and you are throwing out partisan bombs. I have read other posts by you and we are not that far apart on some things. I do not trust the government and I do not trust too big to fail corporations. We have done more damage to our economy than outside sources; doing those things that make the rich richer and moving jobs offshore. This has been happening for longer than a year and even longer than decades.

Congress does pass stupid laws that hurt everyone but they are elected. I read that congress as a whole is given poor ratings but at the same time people rate THEIR congress critters higher.

You are not proposing a solution other than encouraging gridlock. How is that working for you? Everyone complains about the weather but don't do anything about it; and this seems to apply to complaining about the elected people WE voted into office. There is a disconnect, let us find a way to make this work for as many of us as possible; knowing that there will always be someone who will be negatively impacted in many ways.
Posted by sboverie
11th Dec 2009
0 Votes
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sboverie: get a clue...
The rant against congress never changes, but it is not congress that makes jobs.

Think again! Better yet, start thinking.

First off, the rants against congress never end, but they do change, no matter who or what party is in power.

You are right about one thing: congress does not create jobs, but the democrats don't know that and it is their belief that it is congress's and the presidents job to create jobs. They've tried the socialist route through their TARP and other government directives. It's not gonna work and it's never worked. But, the socialists in power always believe that their methods haven't worked in the past because they just weren't implemented correctly. However, what they do is to continue to repeat the same mistakes in the hope of a different outcome at some point. That's the definition of madness.

While the government does not create jobs, it is very well equipped to kill jobs and business and industry. Congress and the presidency, with their interminable rules and regulations, have killed more jobs than the corruption and ineptness of the people in industry.

The job market changed dramatically in the past 30 to 40 years.

Actually, the job market started it's downward decline ever since government got involved in regulating industry and raising taxes and creating government mandates, such as Social Security, Welfare, Medicare/Medicaid; that stupidity started back the early 1900s.

Now congress and the president are threatening the total collapse of the economy with nationalized health care and with cap-n-trade. With more government intrusion and more government takeovers and higher taxes, nobody in industry would feel comfortable in starting a business, growing their businesses, or creating more jobs.

Government does not know how to run an economy and it's been proven throughout history in may different countries. Yet, the idiots will keep trying in the hopes of better outcomes sooner or later.

It has gone from having a job for life to going from one employer to another due to layoffs and poor business practices.

You sound clueless.

Yeah, there are the inept and the corrupt people out there in the economy. But, those are most times taken care of by the people and the economy. Badly run businesses don't last too long in an unforgiving free-market system. That's why there should be no government rescues of corporations; those corrupt and inept companies should be allowed to fail.

The part that you fail to mention is the government intrusion which has eliminated millions of jobs and rendered many companies unable to compete. Our manufacturing base and many service jobs have disappeared because of heavy government regulation, heavy taxes at different government levels, mandated benefits for employees, minimum wage requirements, required unionization which takes away control from management and essentially gives it to union bosses, etc.

When another country and its industrial infrastructure can make a very competitive bid for our businesses and our jobs, no executive is going to turn down the chance to be productive at much lesser overall costs. Thus, with low labor costs, and no benefits to pay, and low or no taxes to pay, and lesser government intrusion/regulation, and no unions to worry about, low real-estate or rental costs, the choice to move the jobs and the businesses overseas is a no-brainer.

Another factor to consider is the disparity in pay between the highest and lowest payscale of corporations.

The people who produce and the people who invest and risk their fortunes, have a right to profit without the government or the public chastising their "greed" The customer base for a company allows them to prosper and make profits; likewise, a disgruntled customer base can make a company fail. It's the free-market system that should decide what benefits the management, investors/owners can get. What you are doing is just expressing your "class envy". It is the rich and the savvy and the entrepreneurs and the people with initiatives who create and/or grow an economy. Chances are that you will never get a job created by a poor person, nor will you ever get a job through class envy. You only chance of getting ahead is by bettering yourself and trying to be productive in whatever it is that you qualify to do.

But, whatever you do, government is not going to solve the problems of the economy or of job losses. The free-market system is infinitely better at growing the economy and creating jobs. Government just kills incentives and destroys economies and eliminates jobs. With the current "leadership" in Washington, unemployment will be high for a few years. You either accept that or you look for new leadership which will get out of the way of the people who do know how to grow the economy and create jobs.
Posted by adornoe@...
11th Dec 2009
0 Votes
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@Adornoe
Nice ad hominem, does that work well for you? If it does, then keep it up. You did not offer any solutions and you disparage my observations. Thanks for playing, next contestant.
Posted by sboverie
11th Dec 2009
0 Votes
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Gridlock worked great, and IT IS my solution.
If you spend any time on any left-of-center blog, you will hear them
wax poetic about the latter half of the '90s, where for a brief moment,
there was actually a budget surplus. Why? Gridlock! Once the
massive intrusion of the moment was eliminated (Hillarycare),
businesses felt free to do business and we thrived.

My only other solution is the Fair Tax, which would eliminate most
wealth distribution schemes and economic micromanagement through the
tax code. But I fear that will never get a chance. Congress will
never give up the power to tax and regulate as it does now.
Posted by JohnMcGrew@...
11th Dec 2009
0 Votes
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JohnMcGrew: gridlock was a tactic, but there was something more
The only reason that Clinton was able to achieve a "balanced budged" was because of the balanced budget amendment passed by republicans and which was essentially forced on Clinton; he was basically dragged kicking and screaming to the signature table to sign that bill.

But still, a true balanced budget wasn't achieved. Most of what occurred to create the illusion of a balanced budget was budgetary gimickry and bookkeeping trickery. If Bush had done some of the same tricks during his administration, he would've had a balanced budget somewhere in 2006 or 2007.

However, the balanced budget amendment from the republicans helped Clinton out a lot. Democrats like to talk about how they left a "budget surplus" after Clinton, but they don't ever talk about who really created the surplus. With republicans in control, they didn't spend more than was allowed by the amendment and Clinton had to stop his penchant for spending which comes with every democrat.

Without the amendment, Clinton would've run up a huge budget deficit because the trend for his administration before the amendment showed spending out of control. In the end, Clinton also ended with the national debt much higher than when he came into office.
Posted by adornoe@...
11th Dec 2009
0 Votes
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sboverie: the solutions are simpler than you think...
Nice ad hominem, does that work well for you?

What ad-hominem? Saying that you're clueless? "Clueless" is not an insult in the context of a conversation. There are millions of people out there who are very clueless about the problems or issues that need addressing by government and by regular folks. Clueless is synonymous with ignorant. When people are not informed about problems and how those problems came to be, then those people are displaying their clueless"ness" or their ignorance.

You talked about the unemployment issue and were apparently clueless about how government was mostly responsible for getting us into the mess and sending jobs overseas. People who look for the simplicity of placing blame on the crooks and greedy people in industry are the most clueless people there can be. Though the crooks and greedy might be part of the problem, the biggest problems stem from government intervention.

If it does, then keep it up.

I call it as I see it.

You did not offer any solutions

You are blind by choice.

There were plenty of solutions. They were self-evident. You just want to ignore them for the sake of getting argumentative.

It's like a patient who complains to the doctor about suffering from pains and bruises every time he plays football and the doctor suggests that perhaps the solution might be to stop the causes of the problem, namely, to stop playing football.

The solutions to problems oftentimes come from first identifying the problems and how we got them. Without identifying how we got the problems, the solutions cannot be devised. Oftentimes, the solution to a problem is to stop what created the problem to begin with. So, heavy government involvement with numerous and intrusive and costly regulations are part of the problems; heavy taxation is part of the problem; passing wage legislation is part of the problem; high cost for benefits is part of the problem; forcing unionization on industry is part of the problem; high cost of real-estate is part of the problem. Hopefully, you get the point.

and you disparage my observations.

Your "observations" were single-minded and simple-minded. Those observations did not put things into proper perspective. You placed blame on the wrong people and you didn't address the biggest source of the problems. Government is important but big government can be very problematic and counter-productive. Once you realize that big government is not the solution and that big government is where many of the problems of industry stem from, then you'll begin to see the light and you can start to see where the solutions are.

Thanks for playing, next contestant.

How silly.

This contestant just proved how clueless and ignorant you are. You are not even in the same playing field. In fact, you are not even a worthy opponent since you are lacking in the facts and in the knowledge and in the understanding of the playing field.

Rightfully, if you expect a "next contestant", that contestant should be coming from grade school. The playing field that I'm in is way beyond your head.
Posted by adornoe@...
13th Dec 2009
0 Votes
+ -
Whenver there's "gridlock", the economy does well
The basic philosophy of "Reaganomics" was that if the growth of
government size and interference could be restrained, economic growth
would eventually overtake deficits. This nearly happened, albeit for a
very short time in the late '90s. We could argue the differences in
policy goals between Clinton and the Republican Congress, but the
reality was that it didn't so much matter; HillaryCare & the "BTU Tax"
(forerunner of today's "Cap-n-tax") and other massive social spending
initiatives were dead. Clinton was forced to the center, and
businesses felt safe to expand.
Posted by JohnMcGrew@...
15th Dec 2009
0 Votes
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businesseshome
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

Lucy

http://businesseshome.net
Posted by Lucy00
5th Feb 2010
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