Contemporary Business Issues: Inequality, Globalization, New Work Forms, and Recruitment

Inequalities in Society

Inequality is defined by Wikinson & Pickett (2010), as a condition in the society where opportunities, rights, resources and previledges are not distributed evenly.  Inequality in the workplace is not new in society, with unequal previledges and rights being witnessed everyday even in this modern age. One form of inequality experienced in the workplace is the gender pay gap. Where women find themselves with less previledges to pay than men for the same level of output.

In 1970, leistlatures in England enacted into law, The equal Pay Act, which made it illegal to pay women less than men for the same level of work and effort. However despite this enactment, in 2021, the gender pay gap in the UK was 15.5%, with women earning on average 84p for every £1 earned by men (Office for National Statistics, 2022).

The gender pay gap can be explained by the human capital theory. This theory argues that the gender pay gap exists because women are less likely to have the same levels of education and work experience as men. As a result, they are less likely to hold senior positions or high-paying jobs. This theory assumes that the market rewards individuals based on their skills, experience, and productivity, and that any pay differences are based on objective criteria.

However, the underlying assumptions that form this theory do not hold especially in our modern society, this has raised a lot of criticism for this theory. The theory fails to account for the impact of gender bias and discrimination. Research studies show that women have a lower probability of being promoted despite having the same qualifications and experience as men (McGowan, et al., 2018). Women are also more likely to work in part-time or low-paid jobs, which are undervalued and do not offer the same opportunities for career progression (Rubery, 2016). In addition, studies have shown that women are more likely to face discrimination in the workplace, such as being passed over for promotions or being paid less than their male colleagues for doing the same job (Fagan & Norman, 2020).

The gender pay gap is a clear example of workplace inequality in England. While the human capital theory provides a useful framework for understanding some of the factors that contribute to this inequality, it is important to critique this theory and recognise the impact of discrimination and bias. To address workplace inequality, underlying social and cultural factors and attitudes towards work must be addressed to create a more equitable and just society.

Globalization

Globalization is defined by Bhagwati (2019), as the increased interconectedness and integration of societies and world cultures. Many different perspectives are risen regarding globalization, this section shall discuss two opposing perspectives.

The Neo-liberal Perspective

The neoliberal perspective is based on the idea that globalisation is a positive force for economic growth and development. According to this perspective, free trade, deregulation, and privatisation are essential for creating a global, economy that is efficient and competitive (Bhagati, 2004). Neoliberalism sees globalisation as a means of reducing poverty and promoting economic growth, as it allows developing countries to integrate into the global economy and benefit from access to new markets and investment (Harvey , 2005).

 

Anti-Globalization Perspective

The anti- globalization perspective takes a more sceptical view of globalisation. This perspective argues that globalisation is a process of neoliberal economic and political domination, which serves the interests of powerful actors such as transnational corporations and international financial institutions at the expense of the poor and marginalised (Stiglitz, 2002). Critical views have emerged that see globalization as a process that perpetuates inequality, undermines democracy, and erodes the sovereignty of nation-states.

Additionally, the anti-globalisation perspective sees globalisation as a negative force that creates inequality, exploitation, and environmental degradation. According to this perspective, globalisation benefits multinational corporations and the global elite at the expense of workers, communities, and the environment. Anti-globalisation activists argue that globalisation leads to a race to the bottom in terms of wages, working conditions, and environmental standards, as companies seek to cut costs and maximise profits.

Strengths and weaknesses of the two perspectives

The neoliberal perspective correctly highlights the potential benefits of globalisation, such as increased trade and investment. However, this perspective often overlooks the negative consequences of globalisation, such as the displacement of workers and the widening of income inequality (Bakan, 2004). In addition, neoliberal policies such as deregulation and privatisation can lead to environmental degradation and social inequality.

The anti-globalisation perspective correctly highlights the negative consequences of globalisation, such as the exploitation of workers and environmental degradation. However, this perspective often fails to offer concrete solutions to these problems. In addition, some anti-globalisation activists have been criticised for engaging in violent protests and rejecting dialogue and cooperation with international organisations.

It is clear that both perspectives have their strengths and weaknesses which points to the complexity of how globalization is. It is therefore important to ensure that globalization is practiced controllably, and a critical analysis of its impact considered across various regions by various actors.

New Forms of Work

The evolution of technology and globalization has transformed the global labour market, causing new markets and employment. An example of emerging employment forms is the gig economy. This market is characterized by the provision of short-term, flexible contracts and the use of online platforms to match workers with clients. The gig economy has gained popularity in recent years, with companies such as Uber, TaskRabbit, and Deliveroo using this model to provide services to customers.

 

While the gig economy offers some benefits to workers, such as flexibility and the ability to work from home, it also poses significant challenges. One of the most significant challenges is the lack of job security and employment benefits, such as healthcare, retirement, and sick leave. Workers in the gig economy are classified as independent contractors rather than employees, which means they are not entitled to the same legal protections as traditional employees.

According to a report by the International Labour Organization (ILO) (2016), the gig economy has led to a decline in workers’ bargaining power, as companies can easily replace them with other workers who are willing to work for lower wages. In addition, workers in the gig economy are often subject to long working hours, low wages, and poor working conditions. These factors have led to calls for greater regulation of the gig economy to ensure that workers are protected and receive fair compensation for their work.

However, despite the negative effects of the gig economy, some individuals argue that it provides opportunities for individuals who would otherwise struggle to find employment. For example, people who are unable to work traditional nine-to-five jobs due to caring responsibilities or disabilities can find work through the gig economy (Kalleberg, 2018). Additionally, the gig economy can provide a source of income for people who are in between jobs or looking to supplement their income.

Some scholars believe that the benefits of the gig economy are overstated, and the negative impact on workers cannot be ignored. Benner (2018), points out that the gig economy is not a sustainable form of employment, as it relies on the exploitation of workers and the evasion of legal responsibilities by companies. Benner argues that a more sustainable model would be to provide workers with greater employment protections and benefits while still allowing for flexibility and autonomy.

Despite the benefits of the gig economy, it also poses significant challenges, including the lack of job security and employment benefits, and the exploitation of workers. There is therefore need for greater regulation of the gig economy to ensure that workers are protected and receive fair treatment.

 

New Forms of Recruitment

Advantages and Challenges to Employers

Internships and placements have become increasing popular with employers offering them to students as a way to attract and develop young talent. While there are several advantages to employers in offering internships, there are also potential challenges that need to be considered.

One of the main advantages of offering internships is that they provide employers with an opportunity to assess the skills and potential of students before committing to hiring them as full-time employees. This can be particularly beneficial for employers in highly competitive industries, where attracting and retaining talented employees is essential for success (Kraij, 2019).

 

Potential challenges associated with offering internships include ensuring that the internship program is structured in a way that provides students with valuable learning opportunities, rather than just using them as cheap labour. Employers need to provide interns with meaningful work that allows them to develop their skills and gain practical experience, while also ensuring that they are not exploited or taken advantage of.

Another potential challenge is managing the expectations of interns, who may have unrealistic expectations about what their internship will involve or the prospects of being offered a full-time job at the end of the program. Employers need to be transparent about the nature of the internship program and the opportunities for progression within the company, to avoid disappointment and disillusionment among interns.

Advantages and Challenges to students

One of the main advantages of undertaking an internship or placement is that it provides students with an opportunity to gain practical experience in their chosen field, which can help to enhance their employability and make them more attractive to potential employers. This can be particularly beneficial for students who are studying in fields that require hands-on experience or practical skills, such as engineering or healthcare. (Blustein & Pittman, 2020)

A potential challenge is the issue of inequality is that, with some students having greater access to internship opportunities than others. Students from more affluent backgrounds may be able to afford to take unpaid internships, for example, while those from lower-income backgrounds may not have the same luxury. This can create a sense of unfairness and injustice, particularly if internships are seen as essential for future career success (Kahn, 2018).