For some, uncertainty instills excitement and motivates the notion of risk-taking. For others, uncertainty creates limitations and constant anxiety. Uncertainty has also transferred into the workforce and is commonly referred to as precarious employment. According to Andrew Jackson, Professor at Carleton University, “precariousness in employment is a condition that is determined through a combination of low job security, wages, and control over the labour process along with a lack of regulatory protection from laws.”[1] The overwhelming level of precarious work is a global phenomenon that has been increasingly evident over the past few years. This emerging nature of work can be accredited to a shifting demographic, complexities in the business world, and corporate power. So how does this global trend impact you and the well-being of your employees? As an employer, you’ll notice three key trends within your organization: higher turnover, more sick days, and a greater count of workplace injuries.


1. Higher Turnover

Millennials are shifting the labour force drastically; the introduction of new values and perceptions seems to be underlying these changes. More specifically, traveling and job rotation appears to be preferred. This could be due to a person’s desire to obtain a higher level of cultural capital. According to James W. Rinehart, author of the “Tyranny of Work”, the way in which society views work has changed, individuals feel that the basic reason for working is to maintain themselves to do the things they “really enjoy”. Life begins when work ends.[2] Moreover, in an online survey conducted by Opinium Research, which asked 4,364 graduates across 75 countries, how many jobs they expect to have over their entire career, 54% of respondents selected at least 2 to 5 and 16% selected at least 6 to 9.[3] Ultimately, the younger demographic favours a diverse career path, leading to more coming and going of employees. Higher turnover means greater onboarding costs over the long run and plenty of work for your Human Resources department. Each new employee requires training and time to master the skills required to perform their job effectively.

2. Increasing Amount of Sick Days

Many of us already know that one’s mental health has a very strong correlation with his or her work environment. The feeling of “never being good enough”, derived from holding an insecure job, has a significant impact on community engagement and relationships, both of which are critical components to one’s happiness. To compensate for the stress and anxiety associated with the instability of a precarious worker’s contract, employers will face an increase of sick or personal days. While this may not lead to an immediate impact on a business, it will eventually impact the overall corporate culture and the onboarding process. New employees tend to imitate co-workers, as they’re very impressionable during the first 3 months into a new job. For this reason, what begins with only a few days off due to stress may result in a hindrance to your company’s overall operational efficiency.


3. More Workplace Injuries
           
While the decline of an employee’s mental health remains one of the most significant implications of precarious work, it only makes sense that precariousness impacts an employee’s amount of sleep, focus, and overall motivation as well. Jon Johnson of Medical News Today reported that “stress can cause the autonomic nervous system to release hormones, such as adrenaline and cortisol. These hormones raise the heart rate to circulate blood to vital organs and muscles more efficiently, preparing the body to take immediate action if necessary.”[1] When an employee loses sleep, it impacts their ability to focus and pay attention to their surroundings. Additionally, according to a study done by sleep expert, Morteza Taheria, Ph.D. of Tehran University, “sleep serves as one of the primary functions of an individual’s cognitive restitution, particularly in the maintenance of attentional mechanisms.”[2] The amount of sleep an individual gets each night is highly correlated with their physical and mental abilities. In other words, less sleep may result in an employee having slower reaction times, instances of illogical thinking, or even irrational behavior.

Additional workplace injuries are caused by the mere failure of a business to educate their temporary workers. According to a 2019 report done by Canada’s House of Commons, titled, “Precarious Work”, permanent employees, those with long term contracts, are more aware of the presence of a health and safety committee – and so are more comfortable communicating any workplace hazards or concerns to them whenever necessary. Alternatively, temporary workers are less likely to do so due to their lack of comfort and familiarity with various departments.[3] An employer must educate all workers, even those who hold part-time or temporary positions to avoid company-wide hazards and accidents.


What can you do as an Employer?

Growing precarious employment levels are a fear but also an inevitable reality for many. So what can you do to overcome this as an employer? You can start by meeting with your Human Resources department. Work together to create a tactical recruitment plan for each department that coincides with your company’s overall strategic goal. This plan should consider budgeting, pairing job demands with skillset, proper training, seasonal volumes, employee satisfaction, and most importantly, aim to create more secure positions and minimize the requirement for temporary workers.

Additionally, while it may be impossible to eliminate precarious work altogether, facilitating a positive culture across your organization can combat any uneasiness and stress felt by your workers. Culture is created by communicating both your company’s purpose and values across the organization consistently and frequently. For example, while maintaining a growth strategy, many start-up companies preserve a flat organizational structure to encourage cross-functional labor. This interdepartmental dependency further improves horizontal communication.

By promoting a positive atmosphere, companies can utilize the talent found within each department and, in doing so, provide each employee with a purpose and a sense of belonging. Employees feel valued and are provided a clear outlook of how their efforts directly impact the company, overall, and its clients. This tactic will also ensure that each member of your staff is comfortable in their environment and aware of who to go to if they suspect a workplace hazard or concern is present.

The most important thing to take away from all of this as an employer is that, while you may find precarious forms of work financially appealing (fewer benefits, lower wages, shift work, etc.), the long term implications including; higher turnover, less productivity, and rising liability eventually counteract any financial gain that may be realized over the short term. Ultimately, it pays to invest in your people.

[1] Jackson, A., & Thomas, M. P. (2017). Work and labour in Canada: critical issues. Toronto: Canadian Scholars.

[2] Rinehart, J. W. (2006). The tyranny of work: alienation and the labour process. Toronto: Nelson.

[3] PWC. (2012). Millennials at work Reshaping the Workplace. Toronto: PWC. Retrieved    January 23, 2018, from https://www.pwc.com/m1/en/services/consulting/documents/millennials-at-work.pdf

[4] Johnson, J. (2018, September 5). "How to tell if stress is affecting your sleep." Medical News Today. Retrieved from https://www.medicalnewstoday.com/articles/322994.php.

[5] Taheri, M., & Arabameri, E. (2012, March). The effect of sleep deprivation on choice reaction time and anaerobic power of college student athletes. Retrieved July, 2019, from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3307962/

[6] May, B. (2019). PRECARIOUS WORK: UNDERSTANDING THE CHANGING NATURE OF WORK IN CANADA (pp. 36-38, Rep. No. 19). House of Commons.

Keri Schrader

BBA, MBA Candidate

Account Manager
DriverCheck Inc.

Keri is an Account Manager for DriverCheck and is pursuing her Master’s degree in Business Administration at the University of Calgary. As a highly motivated MBA Candidate with a Business degree, a Finance specialization and a Minor in Economics, she has developed strong business acumen while focusing on strategic problem solving, risk assessment, financial reporting, and consumer behavior. Keri contributes value to DriverCheck’s Client Support team by building and maintaining robust relationships with large clients across the Western region of Canada.