It is very likely that in the not too distant future the idea of an hourly wage will all but disappear. Are we ready for that. That is what this post is all about.
Things are changing in the workplace. Soon, the idea of getting an hourly wage for doing the same repetitive task will be a distant memory. The future is trending towards a paycheck based on productivity and ownership-based compensation will be the reality. I know I hear some of you sighing “Just what we need, another disruption in our daily lives…”
The pendulum is quickly moving from giving all the profits to the stakeholders, instead making those who produce the product the primary stakeholders. In other words the employees will truly get the profits from their work. But of course that will mean that your take-home pay might vary from month to month depending on the profitability of your company. If this sounds familiar to you then you are likely running your own business.
This idea has a couple of new names: Productivity-Based Compensation and Ownership Equity. In other words the employee will quit being considered a liability and instead will be a vital part of the reason for the success of the business. In the intermediate term there may be some shadow ownership outside the direct company but their needs will no longer take precedence over the employee-owners.
Given that most people make their living in the workplace, what better way to improve the income and wealth building ability of the masses for the long term than to create a workplace where people effectively run their own business under the roof of their employer with the support of their employer?
Currently, we are in the beginning stages of this workplace model and I think it is about time. This is the kind of capitalism that I could only dream of in my work-life. Of course, the transition to this new way of working will not be without its advocates. Right now 1% of the population control almost 50% of the equity in the U.S. For many of those folks it is about power and money is somewhat irrelevant. They will not give up that power without someone taking it away from them.
But, I would be willing to bet a dollar to a donut that this new paradigm will be in common practice within the next couple of decades. When it happens the 40-hour workweek will die with it. That is very exciting to some and every reason to panic to others.