DIFFERENTIATING GOOD AND BAD JOBS

The current debate on labor market regulations focuses on their effects on the level of employment. This article argues that these measures may have a first-order impact on the composition of employment as well as the number of jobs. I show that in a standard model of the labor market, unemployment insurance and minimum wages induce firms to create more high-wage jobs, increase average labor productivity, and may improve welfare. Similar points have been made informally. Unions, for example, often support minimum wages and other regulations, arguing that they will improve the quality of jobs. This essay therefore seeks to analyse the differences between good and bad jobs as well as evaluate the current trends in job quality evaluation.

To determine how good or bad a job revolves primarily on job analysis. Job analysis is the combination of job descriptions and job specifications (Warhurst, C.,F Carre, P. Findlay and C.Tilly, eds, 2012).. For simplification purposes, “specifications” are the skills and background necessary to perform the responsibilities of the job. Since specifications are often a matter of judgment, it is often advised that they not be listed on a job description and, if they are, that they have be determined by more than one person with the help of a professional analyst. Often job descriptions require specific qualifications, for example, a Bachelor’s Degree required, and just as often, a Bachelor’s Degree is not necessary to do the job. On the other hand, a job description is simply a list of responsibilities and functions that are required in a particular position. (Job descriptions are often called position descriptions, and more appropriately so because like jobs can be combined into one description, i.e., clerk, secretary, executive secretary.) Each responsibility normally starts with a verb that describes the activity. These verbs should be standard or understood by those using the descriptions and the person doing the job. Some examples of the more commonly used verbs are: analyzes, approves, authorizes, conducts, controls, coordinates, develops, evaluates, expedites, inputs, maintains, operates, performs, plans, recommends, schedules, supervises, trains, and verifies. There are hundreds of such verbs and by using such terms that most people understand, one minimizes the chances that the responsibilities will be misinterpreted or misunderstood.

One direct way to evaluate how good or bad a job is to rely on the opinions of workers about their job satisfaction based on the job descriptions and job specifications. The definition of either a good or bad job primarily depends on who you ask (Sandberg, Ake, ed). However, a good is generally a job that has sufficient pay to meet personal financial needs, a job that has ongoing opportunities to learn new skills, a job where there is teamwork, and a job that creates and conducive environment to perform tasks. Factors that are shown to contribute to job quality can be used as indicators on whether a job is good or bad. On the other hand, a bad job is a job where the workers feel that they are not utilizing their maximum potential due to a myriad of reasons (Warhurst, C.,F Carre, P. Findlay and C.Tilly, eds, 2012). These reasons include poor remuneration in relation to skills possessed and tasks assigned, poor working conditions, uncooperative colleagues, and an environment that does not allow learning or restricts learning or development of new skills. Current job quality trends show that the current job market is shifting to higher educational requirements with more employers looking for highly skilled and educated workers (Sandberg, Ake, ed).. In addition, employers are looking for workers who possess analytical capabilities, workers who are able to liaise with stakeholders, and generally, workers well versed in the areas described in the job description as well as additional skills. Another important trend to note is the career growth pathways pursued by workers. Employees often begin with Bachelor’s degree or diploma and then make lateral career moves between different types of roles and employers. By working in different organizations, employees learn the different cultures that ultimately make them better in their job delivery. Moreover, salaries for employees vary significantly, both for entry-level positions and experienced workers. These variations in salaries are linked to different employers and different fields of practice. For example, employers in mining, oil and gas, and environment consulting offer the highest paying positions while earnings are lower for employees working for government and Non-Governmental Organizations.

The OECD Better life Initiative (2013) revealed that in a cross-country comparison, Australia fairs exceptionally well in job quality. This index encompasses indices focusing on housing, jobs, community, education, environment, civic engagement, health, life, satisfaction, safety and work life balance. The job sub index takes into account the employment rate, long-term unemployment rate, average earnings, and job security. Australia was ranked seven out of thirty six for its employment rate (Australian Workplace productivity Agency, 2013)). With relative low youth long-term unemployment, but a higher rate or precarious employment compared to the OECD average of 2011. The work life balance sub index is based on information about the number of employees who work long hours and the average time they devote to leisure and personal care. Australia’s ranking on this is low at 31 out of 36 for percentage of employees working long hours. An estimated 14% of employees work very long hours leaving them with leisure time of 14.4 hours that is below the OECD average of 14.8 hours (Australian Workplace productivity Agency, 2013). Another concern for Australia was the high levels of unemployment in single parent families contributing to an above average poverty rate and lower childcare expenditure. In addition, there has also been an increase in no-standard employment in Australia with a resulting increase to involuntary and part time employment. These observations show that Australia, despite the global economic crisis, has managed to improve the quality of work as compared to other developed nations. .

An organization’s labor force comes from its external labor market – individuals who are actively seeking employment. HRM helps organizations find and keep the best possible fit between their social system and technical system. Organizations need employees with broad skills and strong motivation (Findlay, P., A. Kalleberg and C. Warhurst, 2013). Recruiting and selection decisions are especially important for organizations that rely on knowledge workers. Employees’ responsibility and authority are given to make decisions regarding all aspects of product development or customer service. HR professionals can support organizational strategies for quality growth and efficiency. Organizations with international operations hire employees in foreign countries, where they operate, as they need knowledge of differences in culture and business practices. An emerging HRM trend is the information system that has become a tool for more HR professionals, and often, these systems are available through the Internet. The widespread usage of the Internet also includes HRM applications where organizations search for talents, and screen candidates online. Employees may receive training online. The employment relationship takes the form of a psychological contract that describes what employers and employees expect from the employment relationship. The employees are looking for flexible work schedules, comfortable working conditions, and greater autonomy, opportunities for training and development, and performance-related financial incentives. For HRM, the changes require planning for flexible staffing levels. Organizations seek flexibility in staffing levels through alternatives to the employment relationship. They may use outsourcing as well as temporary and contract workers. These trends have improved the job quality because employees are able to search for and apply for jobs online thus choosing the good jobs.

The institutional framework of a country also influences the quality of jobs greatly. Sweden’s welfare system is extensive and world renowned with great benefits to the residents and employees. Sweden has comprehensive dental and healthcare system that sees residents and employees receive free medical care in all government facilities (Core, 1989). In addition to this, Sweden grants generous parental leave to parents and parents who evenly split the 480 days granted receive bonuses from the government. Children under 16 years are also entitled to an allowance until they reach 16 years of age(Core, 1989).. Moreover, employees receive sick leave pay at the rate of 80% of normal salary for days missed. Another benefit is that the unemployed who receive incomes based on previous income level. All the above benefits set in the institutional framework of the Swedish government greatly improve quality of work. Employee spending reduces because of health care and education provision by the government

Reference list

Cole, R (1989) Strategies for learning: Small Group Activities in American, Japanese and Swedish Industry, Berkley: University of California Press

Australian Workplace productivity Agency (2013) Quality of Research Project Report, Curtin Universityhttp://www.awpa.gov.au/publications/Documents/MS4%20Report%20Final%20311013.pdf (Accessed 13 April 2015)

Warhurst, C.,F Carre, P. Findlay and C.Tilly (eds) (2012) Are Bad Jobs Inevitable? Trends, Determinant and Responses to Job Quality in the Twenty-First Century, London: Palgrave Macmillan, esp chs 1, 4

Findlay, P., A. Kalleberg and C. Warhurst (2013) The Challenge of Job Quality, Human Relations, Vol 66 (4)

Gallie, D. (2013) Direct participation and the quality of work, Human Relations, Vol 66 (4)

Sandberg, Ake (ed) Nordic Lights: Work, Management and Welfare in Scandinavia, SNS Forlag Esp Ch 1& 2, 5&6

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