In the post-industrial economy, corporations have chosen to adopt a management strategy in which they focus on their areas of core internal competency and outsource all the other functions.
This approach has had far reaching impacts on the employees but has enabled the companies to make large profits at low costs. Technology companies are able to achieve great successes with little work force due to the duplicable nature of software. Employees receive much less benefits and bonuses, and the companies are less likely to invest in them by giving them time to advance their education or help them pay for their tuition fees.
Opportunities for career growth are also more limited in the modern economy, and most middle level employees find it harder climb up the corporate ladder in their companies. This has contributed to low job security for the workers. Employees have less vacations in a year hence reducing the time that they spent with their families. Often, they are unable to take time off from work even when given the chance because they cannot afford to lose the wages for the off hours (Henry, 2019). Employees are also more willing to put in extra hours in order to earn more to support their families.
The form of welfare capitalism that is practised in big technology companies promises great benefits and good working conditions for its workers. However, only the most educated employees that the companies see as worth investing in enjoy these benefits. In the modern economy, it is increasingly harder for contractual employees to secure permanent jobs at the companies, reducing the level of stability they have in their work as well exposing them to the pressure of looking for a new job every few months.