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2. 2
Future of work in the post-industrialised economy:
Precariat versus Salariat

3. 3
Table of content
1. Introduction ...................................................................................................................... 4
2. Definitions......................................................................................................................... 4
2.1. Who are precariat and salariat? ............................................................................ 4
2.2. What are characteristics of post-industrialised economy?................................ 6
3. Benefits and challenges of precariat compared to salariat ...................................... 8
3.1. What forms of job-related security that precariats are lacking? ....................... 8
3.2. How are precariats motivated and satisfied with their temporary, unstable
and precarious works? ....................................................................................................10
4. The likelihood of precariat as the future of work ......................................................12
4.1. Why is precariat growing in the post-industrialised economy? ......................12
4.2. Is it necessary for recruiters to create opportunities for decent work?Error!
Bookmark not defined.
5. What are some of the key challenges likely for the future and solutions to
address them? ...................................................................Error! Bookmark not defined.
6. Conclusion...................................................................Error! Bookmark not defined.
References ............................................................................................................................14

4. 4
1. Introduction
The report aims at examine the future of work in the post-industrialised economy by
comparing precariat and salariat. First, definitions of above concepts are clarified.
Second, benefits and challenges that precariat obtain in comparison with salariat will
be recognised in application of types of job-related security and Maslow’s hierarchy
of needs. Third, the report will discuss the reasons why precariat is growing steadily
today and the likelihood of the transition from salariat to precariat. Additionally,
argument for the essentiality of the organisations to create opportunities for decent
work is evident. Lastly, challenges facing the organisations in the future due to the
debate for and against precariat will be captured. Recommendations are presented
to solve these challenges.
2. Definitions
2.1. Who are precariat and salariat?
There is a fundamental change in the adoption of “precariat” from the early 1960s to
the 21st century found by Guy Standing in his 2011 book about the debate of what
precariat is and is not (Jørgensen, 2016). It should be defined contrarily to the past
via Marxist theory of employee relations. Based on Marxist approach, working class
is clarified in different layers and precariat is located at the bottom (Figure 1).

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Figure 1: Working class system in application of Marxist theory
Source: Adapted from Fleming, 2014, p. 79
From Figure 1, precariat was judged at the lowest class of all employment
conditions. By contrast, salariat was prejudiced at the higher class and more
respected and recognised than precariat (Bessant, 2018). Linking with Marxist
theory, precariat is defined as the vulnerable workforce due to informal and
precarious working conditions (Fleming, 2014). The concept is contrary to salariat,
which refers to the upper class of employment at large corporations or Government
institutions via formal contracts and huge benefits such as high salary and stable
working conditions (Fleming, 2014). From the comparison, it is supposed that people
tend to favour salariat rather than precariat. The reason is that precariats are at low
prestige, low salary and without an occupational identity and state along with
occupational benefits (Seeleib-Kaiser, 2011). By contrast, salarists receive anything
that precariats lose as mentioned above. According to Jørgensen (2016),
underemployment, insecurity and precariousness are not favourable working
Elite:
Rich global
citizens
Salariat:
Well entrenched
in large
organisations
and Government
institutionsProficians:
Highly rewarded own-
account consultants and
specialists
Working class:
Manual employees
Precariat:
Informal and precarious
Unemployed:
Long-term unemployed
Detached:
Homeless and living below subsistence

6. 6
environment. Hence, it is reasonable if someone prefers becoming salariat to
precariat.
Nonetheless, above attitude has changed in the 21st century of post-industrialised
economy. Standing (2012) viewed a transition in precariats from denizens to citizens.
In line with this transition, precariat is redefined as the class-in-the-making to be
most desired by the global market system thanks to its insecurity and flexibility
(Standing, 2012). That means in the contemporary age, there is an increasing
demand for precariats. In association with the expansion of precariats, salariats and
working class as manual employees are shrinking (Kopycińska and Kryńska, 2016).
Thus, instead of being prejudiced at the half bottom of working class layers, today,
precariat is interpreted as a new status of the labour. As explained by Casas-Cortés
and Cobarrubias (2007), precariat represents the transitioning labour conditions from
life-long, and stable jobs to temporary, insecure and flexible ones. Globalisation has
triggered this change and precariat is now widely recognised as the transformative
mass class (Standing, 2014).
In practice, there are some examples of precariats. They can be temporary with a
short-term contract such as seasonal or a part-time job at low working hours less
than 30 hours per week (Standing, 2012). For instance, from 2008 to 2010, 80% of
jobs in the UK were part-time jobs (Standing, 2012). Additionally, another precariat is
self-employed person without any contract or linkage with other recruiters or bosses
(Kopycińska and Kryńska, 2016). For example, in the UK, self-employed sector
accounted for 15.1% of total labour force in 2017 (Sidhu, 2018). Besides, precariats
are also telecommuters, work-from-home employees or remote jobs. Many
organisations at Fortune 500 have recruited these precariats for both technical and
non-technical jobs, such as Amazon, Apple, IBM and Dell (Schwantes, 2018). In
comparison, salariats are full-time officers with lengthy tenure and regular work
participation (Bessant, 2018).
2.2. What are characteristics of post-industrialised economy?
The global economy has moved to post-industrialised society, which has changed
organisational design, workforce and decision-making (Satrevics and Strautmane,
2015). Comparison between industrialised and post-industrialised economy is
summarised in Exhibit 1.

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Exhibit 1: Change from industrialised to post-industrialised economy
Source: Satrevics and Strautmane, 2015, p.162, 163
Based on Exhibit 1, there are three key evolutions in the post-industrialised economy
relating to the workforce. First, business operation has shifted from manufacturing to
service, from manual labour to high-tech one (Gershuny, 2005). Second,
organisational decision-making has biased its concentration on knowledge-based
resource, knowledge integration and management as well as intellectual capital
rather than productions and cost (Rumyantsev, 2015). Third, modern employees
increasingly pursue goal achievement needs such as the fulfilment of their
professional expertise instead of physiological needs, for instance, money and
accommodation (Satrevics and Strautmane, 2015). Besides, Bennett (2015) clarified
that the post-industrial landscape has experienced job redundancy, job loss, low pay

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and insecurity. These characteristics of the modern economy are helpful for the
further discussion on the future of work.
3. Benefits and challenges of precariat comparedto salariat
3.1. What forms of job-related security that precariats are lacking?
The most noticeable feature of precariats is insecurity, which is constant in the
evolution of its definition from 1960s to the 21st century (Munck, 2013; Smith and
Pun, 2018). It is interpreted as a condition, in which employees suffer from work
instability as well as low collective bargaining power so that they are subject to
unemployment (Jørgensen, 2016). In application of right and safety rules of Standing
(2009), there are seven types of job-related security (Figure 2).
Figure 2: Types of job-related security
Source: Adapted from Fleming, 2014, p. 76
Among seven types, three most common job-related security issues challenging
precariats are job, labour market and representation security. First, it is reasonable
for the organisations to end employment or job of precariats because they are
temporary, seasonal, part-time or voluntarily participating in a product in short term
(Kopycińska and Kryńska, 2016). Additionally, this risk is more serious for precariats
than salariats, who are protected from long-term employment contracts. For
example, at Mattel, after the bankruptcy of Toys R Us, 22% of its corporate jobs will
•Full employment and adequate income policy
on macro levelLabour market security
•Regulation of arbitrary dismissalEmployment security
•Keep employment, job and income status or
upward mobilityJob security
•Health and safety regulationsWork security
•Right to training and education to gain skillsSkill reproduction security
•Minimum wage, adequate compensation,
reduced inequalityIncome security
•Independent unions, right to strikeRepresentation security

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be cut to save cost and reduce the threat from this trend, equivalent to 2,200 part-
time non-manufacturing workers (Wahba, 2018). In this case, it is induced that
precariats suffer from job insecurity due to their temporary contracts along with
macroeconomic turbulence.
Second, as recognised by Jørgensen (2016), since pracriats gain low collective
bargaining power, they are lacking representation security to strike for their benefits.
The reason is that this type of job-related security measures the effectiveness of the
employees to exercise their collective voices against the organisations (Grygutis,
2017). For instance, in hospitality industry, the workforce is dominantly shaped from
seasonal and part-time workers, who are not strongly protected by the union
(Roberts, 2015). These precariats in this sector have weak power to bargain for the
appropriate pay and working conditions. Even, some workers are treated unequally
at low wage and unsecure working environment, for example, the migrants (Alberti,
2014) and the cleaning female staff (Roberts, 2015). By contrast, salariats are
strongly helped and protected through the unionisation (Standing, 2012).
Third, labour market security is another challenge facing precariats because they
may experience temporary unemployment during the transition from one job to
another (Grygutis, 2017). For example, when a precariat completes his/ her position
in a project, he/ she will leave the organisation and find for another career. Lag time
may occur if no job is waiting for the precariat. According to Ballafkih et al. (2017),
despite an increase in precariat trend, these workers remain afraid of being
unemployed. No guarantee is promised for full employment policy for precariats
compared to salariats.
Although Standing (2009), Fleming (2014) and Grygutis (2017) believed that
precariats are deprived of all seven types of job-related security, four remaining
types, including employment, work, skill reproduction and income security, can be
offered to some precariats in reality. For instance, there are several remote jobs,
which help the precariats to earn high pay, such as project manager at the annual
salary from $65,000 to $105,000; Senior system engineer with the annual earning of
$100,000- $150,000 and utilization manager at $92,000 per year (Gillett, 2017).
These cases exclude income security for the precariats. Additionally, even though
hospitality industry is comprised of precariats dominantly, new recruits are still

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trained and provided uniform along with health and safety policies (Alberti, 2014).
Thus, work and skill reproduction security may be promised towards the precariats.
Besides, at some companies such as KMPG and EY, precariats as undergraduate
students, are offered jobs after their internships. For instance, KPMG effectively
converted 85%-90% interns into full-time hires (Tuttle, 2013). The policy shows that
in some cases, precariats can be promoted instead of facing arbitral dismissal
thanks to effective employee retention strategy. To conclude, although precariats
lack of job insecurity, labour market insecurity and representation insecurity, they
can be protected regarding employment, work, skill reproduction and income
security, depending on the organisations’ human resource management (HRM).
3.2. How are precariats motivated and satisfied with their temporary,
unstable and precarious works?
Maslow’s hierarchy of needs model is taken into account because of its relevance in
identifying and justifying employee motivation, from physiological, safety, love, self-
esteem and self-actualisation (Figure 3).
Figure 3: Maslow’s hierarchy of needs
Source: Aruma and Hanachor, 2017, p. 16
In application of this model, advantages that precariats gain and salariats lose can
be recognised. While security need is unmet, precariats can sacrifice this for other
benefits, focusing on the social need and the highest level- self-actualisation. To

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explain, since precariats work flexibly in part-time careers or from home (Kopycińska
and Kryńska, 2016), they have time for both work and life. For instance, when
surveying Australian workforce, it is found that many Australians want to become
precariat to meet their family responsibilities and enjoy lifestyle choices along with
social activities (Lucas, 2012). The reason is that they can work for a half of day and
participate in other social activities or family programs for another half. Or, from a
short interview with Christopher Carlson, a senior associate at Booz Allen, work-
from-home policy allows him to move from the Washington, DC to take care of his
parents while continuing working for the organisation (Miller and Rampell, 2013). His
success in completing dual roles of a senior associate and a son reveals that
precariats can benefit from work-life balance.
Many researchers confirmed that flexibility of precarious works such as part-time,
short-term, seasonal, temporary and work-from-home contracts positively assists the
employees to achieve work-life balance, for instance, Crosbie and Moore (2003),
Shagvaliyeva and Yazdanifard (2014), Rawashdeh et al. (2016) and Jackson and
Fransman (2018). Even, these authors identified that flexible working arrangements
not only balance work and life but also satisfy employees by reducing work stress,
conflicts with the colleagues and increasing their personal welfare. For example,
Christopher Carlson shared that performing as a telecommuter at Booz Allen saves
his money spent on transportation (Miller and Rampell, 2013). Thus, net earning
from his job can increase. By contrast, salariats must spend full time on work and
may miss opportunities to join the important events of their children, for instance,
graduation days and cut time to play with them. Even, a hard-working day with some
troubles such as traffic jam or debate with the supervisor may make salariats
exhausted to spend time on their families.
Besides need for family love and social activities, the precariats have chances to
achieve self-actualisation need, which refers to the workers’ fulfilment of potential,
skills and personal interests (Soelistya et al., 2016). It is explained that since the
precariats work for an organisation temporarily, they are not required to stick to the
organisation or a fixed job in long term (Standing, 2012). Instead, they can be rotated
or moved to different careers in different departments with different job
specifications. Hence, they have opportunities to unlock their potential and improve
capabilities. For example, freelancers, who do not stick to a certain organisation and

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perform any task from different bosses anywhere and anytime as long as deadline is
committed, are driven to keep the precarious working condition because of their
need for development and accomplishment in various areas (Born and
Witteloostuijn, 2013). Moreover, instead of making themselves busy at the office,
they let themselves be enjoyable. For instance, they can combine tourism with work
or choose the most comfortable atmosphere at a favourable café for their creative
performance instead of hiding their creativity within a stuffy environment. To
summarise, precariats sacrifice security need for the pursuit of social and self-
actualisation needs.
4. The likelihood of precariat as the future of work
4.1. Why is precariat growing in the post-industrialised economy?
Global labour market has been changing from salariats to precariats. Many
evidences have proved this replacement from three perspectives, including (1) the
economists in general, (2) the organisation’s managers and (3) the employees. First,
the economists see the precariats to be more suitable than salariats to match with
the contemporary economic trends. As mentioned previously, the post-industrialised
economy has shifted work patterns from production, manufacturing and material
needs to high-tech, service, knowledge and personal development goal (Gershuny,
2005; Rumyantsev, 2015; Satrevics and Strautmane, 2015). Thus, telecommuters,
flexible working arrangements and temporary contracts are required in the transition.
From the application of Maslow’s model, precariats are concerned with personal
growth and beneficial self-actualisation need better than salariats. Hence, they
represent the workforce in post-industrialised economy. Additionally, according to
Kopycińska and Kryńska (2016), the contemporary society has changed from
welfare state concept to economic growth concept. That means rather than
achieving full employment, the states and societies desire to optimise human
resource and allocate it efficiently. For example, the economists may prefer the
seasonal change in workforce to distribute workers efficiently during peak and off-
peak time. The reason is that precariousness in the labour market can adapt quickly
and easily the turbulent economy nowadays instead of the fixed or full employment
of salariats.

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Besides, unionisation has decreased sharply (Figure 4) to reflect that the collective
bargaining power is loosened.
Figure 4: Unionisation trend in the UK from 1970s to 2016 (millions)
Source: Topping, 2017
As observed from Figure 4, trade union members reduced from more than 13mn in
1970 to 6mn in 2016. This trend explains the decrease in salariat to be replaced by
precariat because unionisation is a representative of salariats.
Second, precariat is growing in response to managerial needs regarding cost
reduction and creativity. It is found from literatures that flexible working
arrangements such as telecommuting help the organisations save a huge amount of
expenses in offices, travel and parking (Shafizadeh et al., 2007; Madsen, 2011). For
example, after Aetna announced its work-from-home policy, its telecommuters
increased from 9% in 2005 to 47% in 2012 and it could save $78mn in real estate
(Miller and Rampell, 2013). In addition, because of the reduction in stress and the
enjoyment of comfortable working condition, flexible workers are predicted to be
more creative than officers (Crosbie and Moore, 2003; Born and Witteloostuijn,
2013). For instance, in addition to face-to-face collaboration, IT companies in Kerala
allow work autonomy so that workers can creatively raise their voice and find new
solutions or initiatives (Sia and Appu, 2015).

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Third, the likelihood of precariats to replace salariats is derived from the favour of the
contemporary workers towards flexible, unstable and precarious working conditions.
Work-life balance is the important need for today’s workforce and as explained from
the application of Maslow’s model, precariats fulfil this need more effectively than
salariats (Shagvaliyeva and Yazdanifard, 2014; Rawashdeh et al., 2016). From
surveying many employees, researchers identified that they are increasingly
demanding for flexible working arrangements, part-time jobs, telecommuting and
freelancing positions and satisfied with such choices despite job insecurity and
instability (Born and Witteloostuijn, 2013; Jackson and Fransman, 2018). For
instance, in the survey of 2,128 students, 45% of them had a part-time job to fund
their studies (Gil, 2014). That means these people voluntarily place themselves as
precariats. Or for the case of Christopher Carlson, instead of obtaining hierarchical
power at Booz Allen’s offices, he decided to become a precariat to care for his
parents (Miller and Rampell, 2013). To summarise, precariat is growing because
economic trends create conditions to boost them while organisations increasingly
adopt them and employees voluntarily become them.
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