The Future of Work: Business Models

Working Poor Families Project Policy AcademyJune 4-5, 2015

Maureen Conway and Vickie Choitz

• Many factors influence business strategy and business models

• Purpose of business is profits, not job creation

• Business interest and societal interest not always the same (e.g. environment)

Trends

• Outsourcing• Contracting• Flatter management structures and shorter

tenures diminished internal career ladders• Sharing economy

Goal: Lower labor costs; higher profitability

Distribution of low-wage work by industry, 2013

*Only those industries which account for 3 percent or more of sub-standard employment are included

Manufacturin

g

Constructi

onRetail

Transp. &

Warehousin

g

Admin. & su

pport

Education Sv

cs

Health Care

Food Sv

cs & drin

king

0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%

% of Low Wage Work% of workers within the industry who are low wage employees

Industries differ in their reliance on low-wage work

Businesses Have Choices.. And some make better choices than others

Alternative Business Models/Practices

• Profit sharing models– ESOPs

• Coops– worker ownership, democratic governance

• Employee friendly practices– OBM: Finance/data “open”; know the rules, move the

numbers; employees share in biz success– “Good Jobs Strategy”

• Benefit corporations– Governance; workers; community; environment

Encouraging Alternative Models/Better Business

• Persuasion– Is it better business? “Good Jobs Strategy”

• Regulate– Set rules– Question: Unintended consequences (e.g. fissured

workplace)

• Preference– Procurement– Awards, public praise, consumer awareness/campaigns

Notes on Sharing Economy

What kind of opportunity and for whom?Access, sufficiency, opportunity

Tasks vs. jobs—what does it mean to work? What is role of policy in “encouraging work” or managing risk?

What values will guide laws/rules to govern the sharing economy?