Monday, February 18, 2008

PBS Program Missing the Virtual Economy and Entrepreneurs

I understand that PBS aired a very important, provocative program recently about freelancers who aren't provided corporate benefits. (see blurb below)

What this program missed (and most do) is that many people in the virtual economy don't consider ourselves freelancers. We're virtual company entrepreneurs with a number of clients (some corporate, no doubt).

I, for one, don't want corporate benefits because I don't want to be tied down to one client. That puts me back in the "employee" trap I was in before starting my own business. Once a company gives you benefits, they feel they can own you and will often dump far more demands on you than they are paying for.

The way around the benefit issue -- which is undoubtedly going to be hacked away for full-time employees, anyway -- is to have enough business to pay your own way. The IRS provides tax breaks for small companies, as you all know.

Anyway, very provocative and something to discuss if you want to as I write and talk about this subject a lot, nowadays. If you have thoughts to share for my blogs, you can reach me directly at az@a-zinternational.com.

From PBS:

Corporations are taking benefits from workers by calling them "freelancers."

Temporary workers and independent contractors make up nearly a third of the U.S. workforce, and represent a growing asset to companies who rely on freelance flexibility. But corporations are using the designation "freelancer" to avoid paying health care and other benefits, even though many of these workers put in the same hours as their covered counterparts. NOW looks at the effect of this tactic on the lives and personal economy of freelance workers.

We also examine an Enterprising Idea to help independent workers manage their personal needs, including benefits, networking and investment help. Freelancers Union, founded by former labor lawyer and MacArthur grant recipient Sara Horowitz, provides a safety net for over 60,000 workers, but how is it viewed by the traditional labor movement?

This is part of NOW's series on social entrepreneurs called "Enterprising Ideas"

2 comments:

Anonymous said...

I really like this part of your post: "I, for one, don't want corporate benefits because I don't want to be tied down to one client. That puts me back in the "employee" trap I was in before starting my own business. Once a company gives you benefits, they feel they can own you and will often dump far more demands on you than they are paying for."

I recently changed from employee to independent contractor. Immediately, the task of doing everything was taken away and replaced with what will you do in exchange for what compensation? I had in the past, for several years, been in this same position and I had forgotten how it felt to be in a quid quo pro bargaining position. Sometimes the benefits one thinks one is getting is not so hot when laid up against the cost.

amyz said...

Hi anonymous,

Right, it's a major mindshift . . .

As a subcontractor business owner you think about project fees and time spent and then BARGAIN for what you are worth.

If you are efficient you can make your hourly rate and more by correctly determining how much time/money a project will take.

You know, I think I'll write about this for my next blog entry out on EONS and other sites, so stay posted.

Any way you will communicate with me about your circumstances? Even post some questions so I can answer them?

best,

AZ