Misplaced Pages

#928071

105-695: The OLI monitors the demand and supply of work from the world's leading online gig-work internet platforms. The index has become an international reference for the measurement of the online freelance economy. Since 2021, the OLI is hosted on the Online Labour Observatory , a joint project of the International Labour Organisation and the Oxford Internet Institute . This article about

210-402: A PowerPoint presentation and a booklet. McKinsey & Company has traditionally charged approximately 25 percent more than competing firms. Its invoices traditionally contain only a single line. A typical McKinsey engagement (called a "study") can last between two and twelve months and involves three to six McKinsey consultants. An engagement is usually managed by a generalist that covers

315-429: A partnership before being legally restructured as a private corporation with shares owned by its partners in 1956. It mimics the structure of a partnership and senior employees are called "partners". The company has a flat hierarchy and each member is assigned a mentor. Since the 1960s, McKinsey's managing director has been elected by a vote of senior directors to work up to three, three-year terms or until reaching

420-476: A "fading empire, where hubris and changing times have diminished the firm's statures." In his February 2020 in-depth article in The Atlantic , Daniel Markovits argues that McKinsey promotes "intellect and elite credentials" and "Meritocrats" over "directly relevant experience". Many of McKinsey's alumni become CEOs of major corporations or hold important government positions. In doing so, they influence

525-462: A 1997 article in The Observer , McKinsey recruited recent graduates and "imbue[d] them with a religious conviction" in the firm, then cull[ed] through them with its " up-or-out " policy. The "up or out" policy, which was established in 1951, meant that consultants that were not being promoted within the firm were asked to leave. By 1997, about one-fifth of McKinsey's consultants departed under

630-602: A 2021 report by the World Health Organization and the International Labour Organization the expansion of the gig economy can be seen as one significant factor for the increase in worker deaths for those who work over 55 hours a week (relative to those who work 35–40), rising from 600,000 deaths in 2000 to 750,000 in 2016. The report found that in 2016, 9% of the world's population worked greater than 55 hours weekly, and this

735-677: A McKinsey consultant at the time, published "Make Overhead Cuts That Last" in Harvard Business Review , in which he introduced new rules for scientific management such as "overhead valuation analysis" (OVA). OVA guided McKinsey's "path to downsizing", responding to the "mid-century corporation's excessive reliance on middle management". Neuman wrote that the "process, though swift, is not painless. Since overhead expenses are typically 70% to 85% people-related and most savings come from work-force reductions, cutting overhead does demand some wrenching decisions." In 1976, Ron Daniel

840-489: A Social Sector Office (SSO) in 2008, which is divided into three practices: Global Public Health, Economic Development and Opportunity Creation (EDHOC) and Philanthropy. McKinsey does much of its pro-bono work through the SSO, whereas a Business Technology Office (BTO), founded in 1997, provides consulting on technology strategy. By 2009, the firm consisted of 400 directors (senior partners), up from 151 in 1993. Dominic Barton

945-434: A context of more irregular careers and frequent transitions, linking entitlements to individuals rather than jobs may contribute to this, while fostering mobility and mitigating the social cost of labour market adjustments. In some jurisdictions, legal rulings have classified full-time freelancers working for a single main employer of the gig economy as workers and awarded them regular worker rights and protection. An example

1050-574: A fee. It is against the law for an employer to claim a worker as an independent contractor when they are in fact an employee. Where this happens, the business could be liable for penalties under the Fair Work Act, and have to backpay the entitlements. When it comes to platform workers in Europe, there are significant differences across countries. The UK has the highest incidence of platform work. Other countries with high relative values are Germany,

1155-490: A home-sharing site. Adding up everyone who has performed at least one of these three activities, some 24% of American adults have earned money in the "platform economy" in 2015. McKinsey Global Institute McKinsey & Company (informally McKinsey or McK ) is an American multinational strategy and management consulting firm that offers professional services to corporations, governments, and other organizations. Founded in 1926 by James O. McKinsey , McKinsey

SECTION 10

#1732787933929

1260-841: A loss of income. The literature on the gender pay gap in the platform economy is mixed. But many studies show that women continue to earn less than men, even in platform-based economies. The gender pay gap for platform-based work is also typically similar in magnitude to the pay gap observed for sectors outside the gig economy. One analysis of Uber drivers in the United States found that on average, women earned about 7% less than their male counterparts. On Amazon's platform, Mechanical Turk (MTurk), which allows companies to hire people to perform simple online tasks that are difficult to automate, women earned about 10.5% less per hour of work than men, largely because women tended to take breaks between tasks rather than working continuously through

1365-399: A lot of gig work can be done online, gig workers find themselves competing with one another in a 'planetary labour market'. Many factors go into a desirable job, and the best employers focus on the aspects of work that are most attractive to today's increasingly competitive and fluid labor force. Traditional workers have long term employer–employee relationship in which the worker is paid by

1470-466: A management tool. McKinsey's first partners were AT Kearney , hired in 1929, and Marvin Bower , hired in 1933. Bower is credited with establishing McKinsey's values and principles in 1937, based on his experience as a lawyer. The firm developed an " up or out " policy, where consultants who are not promoted are asked to leave. In 1937, Bower established a set of rules: that consultants should put

1575-456: A mobile lifestyle combining work and leisure, requiring a particular set of skills and equipment. Gig work enables digital nomads by offering flexible, location-independent job opportunities that can be performed remotely, typically through digital platforms, allowing for a lifestyle of travel and work anywhere with internet connectivity. It is important to distinguish employment in the sharing economy from employment through zero-hour contracts ,

1680-632: A permanent prohibitory injunction from the court against protests by the Urban Company employees. The protest was eventually called off following the imposition of Section 144 of the Criminal Procedure Code in Gurugram. The gig economy is ostensibly less gender-segregated worldwide than the traditional labor market. However, women across the world continue to protest against gender gaps such as lower wages and working hours and

1785-548: A platform service that helps people hire house-maids and caretakers, has provisions to request workers from specific geographic regions and religions. This has been criticized for perpetuating caste-based discrimination . The Indian Federation of App-based Transport Workers and the Telangana Gig and Platform Workers Union currently have 36,000 and 10,000 members respectively, including cab drivers, food and grocery delivery workers, and e-commerce delivery persons. Some of

1890-603: A private consulting agreement, violating McKinsey's policies on confidentiality. Gupta was convicted in June 2012, of four counts of conspiracy and securities fraud , and acquitted on two counts. In October 2011, he was arrested by the FBI on charges of sharing insider information from these confidential board meetings with Rajaratnam. At least twice, Gupta used a McKinsey phone to call Rajaratnam and retained other perks—an office, assistant, and $ 6 million retirement salary that year —as

1995-606: A process to centralize knowledge from each practice area and a resource directory of internal experts." By the end of his tenure in 1988 the firm was growing again and had opened new offices in Rome , Helsinki , São Paulo and Minneapolis . Fred Gluck was McKinsey's managing director from 1988 to 1994. The firm's revenues doubled during his tenure. He organized McKinsey into 72 "islands of activity" that were organized under seven sectors and seven functional areas. By 1997, McKinsey had grown eightfold over its size in 1977. In 1989

2100-449: A program designed to transform corporate culture . A 1975 publication by McKinsey's John L. Neuman introduced the business practice of "overhead value analysis" that contributed to a downsizing trend that eliminated many jobs in middle management . McKinsey has a notoriously competitive hiring process and is widely seen as one of the most selective employers in the world. McKinsey recruits primarily from top business schools and

2205-474: A senior partner emeritus. After the scandal McKinsey instituted new policies and procedures to discourage future indiscretions from consultants, including investigating other partners' ties to Gupta. In February 2018, Kevin Sneader was elected as managing director. He had a three-year term that began on July 1, 2018. McKinsey has consulted for multiple cities, states and government organizations during

SECTION 20

#1732787933929

2310-545: A series of tasks to accommodate caregiving responsibilities, particularly young children. Many workers cite flexibility as a primary reason for choosing to engage in gig work, however that flexibility is subject to some limitations that may have gendered impacts. The primary limitation is that imposed by surge pricing. By tying pricing to demand, surge pricing incentivizes workers to be online during high-traffic or high-demand times. Surge pricing times may conflict with non-work commitments like caregiving responsibilities, creating

2415-583: A set of actions and drew the attention of Brazilian society to the problem. According to IPEA , a government-led research agency, it was estimated that in October 2021, gig workers numbered 1.4 million people in Brazil. In 2015 nearly one-in-ten Americans (8%) have earned money using digital platforms to take on a job or task. Meanwhile, nearly one-in-five Americans (18%) have earned money by selling something online, while 1% have rented out their properties on

2520-575: A term primarily used in the United Kingdom to refer a contract in which an employer is not obliged to provide any minimum number of working hours to an employee. Employment in the gig economy entails receiving compensation for one key performance indicator, which, for example, is defined as parcels delivered or taxi lifts conducted. Another feature is that employees can opt to refuse taking an order. Although employers do not have to guarantee employment or employees can also refuse to take an order under

2625-449: A trade-off between flexibility and higher earnings. Measuring the size of the gig workforce is difficult because of the different definitions of what constitutes "gig work"; limitations in the methods used to collect data via household surveys versus information from business establishments; and differing legal definitions of workers under tax, workplace, and other public policies. Gig work's appearance has been related to wide changes in

2730-607: A traditional "headquarters"; the managing partner chooses his or her home office. McKinsey & Company provides strategy and management consulting services, such as providing advice on an acquisition, developing a plan to restructure a sales force, creating a new business strategy or providing advice on downsizing, according to the 2013 book, The Firm . The 1999 book, The McKinsey Way said that McKinsey consultants designed and implemented studies to evaluate management decisions using data and interviews to test hypotheses . which were then presented to senior management, typically in

2835-753: A year on research. McKinsey was one of the first organizations to fund management research, when it founded the Foundation for Management Research in 1955. The firm began publishing a business magazine, The McKinsey Quarterly , in 1964. It funds the McKinsey Global Institute, which studies global economic trends and was founded in 1990. It also launched the McKinsey Institute for Black Economic Mobility in 2020 to fund research focused on advancing inclusive growth & racial equity globally. Many consultants are contributors to

2940-404: A zero-hour contract, workers under such a contract are paid by the hour and not directly through business-related indicators as in the case of the gig economy. Ghost work is a specific type of labor that is typically task-based and invisible to the end user. Ghost workers work on discrete tasks for a company, but they do not have a relationship with the company beyond assignment of the task and

3045-522: Is CitySprint . On 19 February 2021, the Supreme Court ruled in favour of 25 Uber drivers having "worker status"; the publication Personnel Today suggests that this case establishes "once and for all that in the UK the self-employed app-based driver model is no longer viable". Many "gig economy workers" have not been able to receive COVID-19 pandemic support funding. The precarity of work, with

3150-477: Is 20% to 30% of the economically active population in the United States and Europe. A 2016 study by the McKinsey Global Institute concluded that, across America and England, there were a total of 162 million people that were involved in some type of independent work. Moreover, their payment is linked to the gigs they perform, which could be deliveries, rentals or other services. Because

3255-525: Is credited with founding the firm's principles and strategy as his deputy. The New York office purchased exclusive rights to the McKinsey name from the former McKinsey Chicago office which was separated with AT Kearney in 1946. McKinsey & Company grew quickly in the 1940s and 1950s, especially in Europe. It had 88 staff in 1951 and more than 200 by the 1960s, including 37 in London by 1966. In

Online Labour Index - Misplaced Pages Continue

3360-539: Is not yet very welcome in Korea. This is because many "gig workers" have conflicts with existing services and expose the lack of social and legal preparation. Gig work in Southeast Asia has been rapidly growing since 2010; based on World Bank estimates in 2019, the gig work population has seen a consistent 30% annual growth rate. Although there is already a large informal sector in many Southeast Asian countries,

3465-426: Is still being debated, with companies classifying their workers as "independent contractors", while organized labor advocates have been lobbying for them to be classified as "employees", which would legally require companies to provide the full suite of employee benefits like time-and-a-half for overtime, paid sick time, employer-provided health care, bargaining rights, and unemployment insurance, among others. In 2020,

3570-527: Is temporary. The earliest usage of the word gig in the sense of "any, usual temporary, paid job" is from a 1952 piece by Jack Kerouac about his gig as a part-time brakeman for the Southern Pacific railroad . In the 2000s, the digital transformation of the economy and industry developed rapidly due to the development of information and communication technologies such as the Internet and

3675-482: Is the October 2016 ruling against Uber in the case of Uber BV v Aslam , which supported the claim of two Uber drivers to be classified as workers and to receive the related worker rights and benefits. In 2019, the UK Supreme Court provided guidance on the correct way to categorize "gig economy" workers. The London-based company Pimlico Plumbers lost an appeal against the argument that one of its plumbers

3780-443: Is the lack of alternatives. One controversial issue, though not unique to Europe, is the employment status of platform workers. In most cases the providers of labour services via platforms are formally independent contractors rather than employees, however when asked about their current employment situation, 75.7% of platform workers claimed to be an employee (68.1%) or self-employed (7.6%). The labour market status of platform workers

3885-435: Is the main reason they pursue gig work. One reason for this is that many women need to balance work with familial responsibilities and are therefore more likely than men to participate in gig work due to scheduling reasons. For many women, platform-based food delivery work also provides an opportunity monetize previously unpaid domestic skills like food shopping. Platform-based work is also highly segregated by gender. Men in

3990-438: Is the oldest and largest of the "MBB" management consultancies (MBB) . The firm mainly focuses on the finances and operations of their clients. Under the direction of Marvin Bower , McKinsey expanded into Europe during the 1940s and 1950s. In the 1960s, McKinsey's Fred Gluck —along with Boston Consulting Group 's Bruce Henderson , Bill Bain at Bain & Company , and Harvard Business School 's Michael Porter —initiated

4095-530: Is unclear even to workers themselves, and it also reflects uncertainty surrounding this issue in policy and legal debates around Europe. While platform work can lower the entry barriers to the labour market and facilitate work participation through better matching procedures and easing the working conditions of specific groups, this type of work often relies on a workforce of independent contractors whose conditions of employment, representation and social protection are unclear and often unfavourable. In most EU states,

4200-504: Is unlikely to disappear anytime soon. In their book, The Gig Economy , Woodcock and Graham outline four pathways worker-friendly futures for the gig economy: increased transparency, better regulation, stronger collective organisation of workers, and platforms run as cooperatives or public infrastructures. When it comes to gig workers in Africa, there are significant variations across different countries. Sub-Saharan Africa comprises 13% of

4305-593: The 2019 coronavirus pandemic . During the first four months of the pandemic, McKinsey obtained in excess of $ 100 million in consulting work, including no-bid contracts with the United States Department of Veterans Affairs and Air Force . The reopening guidelines for Florida's Miami-Dade County , produced with McKinsey's input, were criticized by local media and officials for complexity and lack of clarity. McKinsey discontinued its investment banking advisory unit in 2021, citing "personnel matters" as

Online Labour Index - Misplaced Pages Continue

4410-608: The G20 summit 2023, held at Delhi, India. On 24 July 2023, the Rajasthan legislative assembly approved a groundbreaking bill that provides social security benefits to gig workers, making it the first of its kind in India. The Rajasthan Platform Based Gig Workers (Registration and Welfare) Bill, 2023 aims to enlist all gig workers and aggregators operating in the state, ensuring they receive essential social security protections. Additionally,

4515-486: The Harvard Business Review . McKinsey consultants published only two books from 1960 to 1980, then more than 50 from 1980 to 1996. McKinsey's publications and research give the firm a "quasi-academic" image. A McKinsey book, In Search of Excellence , was published in 1982. It featured eight characteristics of successful businesses based on an analysis of 43 top performing companies. It marked

4620-732: The delivery economy . Women now make up just under half of the delivery people on the Uber Eats platform and DoorDash now reports that 58% of their delivery drivers are women. Aside from the flexibility, women tend to prefer delivery work to ride-sharing work because of safety concerns in being a female driver in ride-sharing services. There have been various accounts of sexual harassment claims filed by female Uber drivers. There have been various accounts of sexual harassment claims filed by female Uber drivers. A 2019 safety report released by Uber reported 6,000 incidences of sexual assault from 2017-2018 experienced by both riders and drivers. Despite

4725-402: The economy is a stub . You can help Misplaced Pages by expanding it . Gig work Gig workers are independent contractors , online platform workers, contract firm workers, on-call workers, and temporary workers . Gig workers enter into formal agreements with on-demand companies to provide services to the company's clients. In many countries, the legal classification of gig workers

4830-593: The opioid crisis in North America , its work with Enron , and its work for authoritarian regimes like Saudi Arabia and Russia . The criminal investigation by the US Justice Department , with a grand jury to determine charges, is into its role in the opioid crisis and obstruction of justice related to its activities in the sector. McKinsey & Company was founded in Chicago under

4935-626: The Indian population is employed in the informal economy , which is dependent on local linguistic, ethnic and regional dynamics and networks. The technologization of informal labor with app-based work has obviated the need to navigate these local systems for work and payment. Rural-to-urban migrants form a majority of the gig workforce, which serves an intermediary work settlement and an alternative to unregulated contractors who place them at risk of trafficking and other forms of exploitation. Class and caste identities that have historically been excluded from

5040-654: The Netherlands, Spain, Portugal and Italy. By contrast, Finland, Sweden, France, Hungary and Slovakia show very low values compared to the rest. The typical European platform worker is a young male. A typical platform worker is likely to have a family and kids, and regardless of age, platform workers tend to have fewer years of labour market experience than the average worker. The majority of platform workers provide more than one type of service and are active on two or more platforms. While flexibility and autonomy are frequently mentioned motivations for platform workers, so too

5145-488: The absence of a specific regulation covering this new form of relationship between Brazilian companies and gig workers has increased legal uncertainty and been a source of social conflicts. In 2020, there was a national strike bringing together delivery workers coordinated by a set of social movements, such as the Entregadores Antifascistas , a collective organisation of gig workers, which mobilized

5250-541: The accounting practice into Chicago-based Wellington & Company. A Wellington project that accounted for 55 percent of McKinsey, Wellington & Company's billings was about to expire and Kearney and Bower had disagreements about how to run the firm. Bower wanted to expand nationally and hire young business school graduates, whereas Kearney wanted to stay in Chicago and hire experienced accountants. In 1937, James O. McKinsey died after catching pneumonia. This led to

5355-622: The article, McKinsey was cited as claiming that its consultants were not motivated by money, and that partners talked to each other with "a sense of personal affection and admiration". The article described a culture clash that occurred in the early 1990s, leading to the departure of 151 out of the 254 ICG staff members. In their 1997 book Dangerous Company: Management Consultants and the Businesses They Save and Ruin , authors James O'Shea and Charles Madigan said that McKinsey's culture had often been compared to religion , because of

SECTION 50

#1732787933929

5460-496: The beginning of McKinsey's shift from accounting to "softer" aspects of management, like skills and culture. According to David Guest from King's College , In Search of Excellence became popular among business managers because it was easy to read, well-marketed and some of its core messages were valid. However, it was disliked by academics because of flaws in its methodology. Additionally, a 1984 analysis by BusinessWeek found that many of those companies identified as "excellent" in

5565-707: The bill establishes a mechanism for gig workers to voice and address their grievances. Gig work is spreading around the side job and delivery business. Kakao has hired drivers to build a system for proxy driving, and the people of delivery are meeting the surging demand for delivery through a near-field delivery called "Vamin Connect". There is a gig work platform for professional freelancers, not just work. The platform, which connects those who want skilled professionals and those with skills, offers ten kinds of services, including design, marketing, computer programming, translation, document writing and lessons. However, "gig worker"

5670-441: The change in the economy created a new labor force characterized by independent and contractual labor. Uberisation or uberization is a neologism describing the commercialization of an existing service industry by new participants using computing platforms , such as mobile applications, in order to aggregate transactions between clients and providers of a service, often bypassing the role of existing intermediaries as part of

5775-697: The company performed more than 1,000 e-commerce projects from 1998 to 2000 alone. An October 1, 2000, article in the New York Times described the compulsory mini-courses that McKinsey—and its two largest rivals Boston Consulting and Bain—offered their "hyper-educated" young new recruits. Once completed, these newly certified management consultants would begin their work of "advising the executives of multibillion-dollar companies" on "projects" not related to their academic backgrounds"—"[l]awyers would help packaged-foods companies develop new products, and physicists would tell Internet start-ups how to stand out from

5880-469: The crowd." The burst of the dot-com bubble led to a reduction in utilization rates of McKinsey's consultants from 64 to 52 percent. Though McKinsey avoided dismissing any personnel following the decline, the decline in revenues and losses from equity-based payments as stock lost value, together with a recession in 2001, meant the company had to reduce its prices, cut expenses and reduce hiring. In 2001, McKinsey launched several practices that focused on

5985-734: The demands of these unions include security benefits, higher base fares and protection against exploitation by aggregator companies. In response, the Indian parliament passed new laws guaranteeing social security and occupational health and safety of gig workers in 2020. These laws are yet to be implemented. In its 2021 report, NITI Aayog also recommended fiscal incentives including tax breaks or startup grants for companies with about one-third of their workforce as women and people with disabilities. Securing social protection coverage, improving national statistics on gig and platform work and policy options, and discussing insurance and tax-financed schemes for gig platforms have been delineated as key priorities for

6090-407: The division of McKinsey, Wellington & Company in 1939. The accounting practice returned to Scovell, Wellington & Company, while the management engineering practice was split into McKinsey & Company and McKinsey, Kearney & Company. Bower had partnered with Guy Crockett from Scovell Wellington, who invested in the new McKinsey & Company and became managing partner, while Marvin Bower

6195-407: The economy. Advances in globalization and technology put pressure on companies to respond quickly to market changes. Securing labor through nontraditional agreements such as gig work will enable companies to quickly adjust the size of their workforce. This can help companies increase their profits. From this point of view, the unconventional gig work is a fundamental component of today's economy, and it

6300-558: The firm felt would follow its advice. Bower also established the firm's language. In 1932, the company opened its second office in New York City . In 1935, McKinsey left the firm temporarily to be the chairman and CEO of client Marshall Field's . In 1935, McKinsey merged with accounting firm Scovell, Wellington & Company, creating the New York-based McKinsey, Wellington & Co. and splitting off

6405-536: The firm had a "button-down culture" focused on "playing by the rules". In his 2013 book, The Firm: The Story of McKinsey and Its Secret Influence on American Business , Duff McDonald described how McKinsey's consultants were expected to become a part of the community and recruit clients from church, charitable foundations, board positions and other community involvements. McDonald wrote that McKinsey calls itself "The Firm" and its employees "members". BusinessWeek summarized The Firm ' s description of McKinsey as

SECTION 60

#1732787933929

6510-650: The firm tried to acquire talent in IT services through a $ 10 million purchase of the Information Consulting Group (ICG), but a culture clash caused 151 out of the 254 ICG staff members to leave by 1993. In 1994, Rajat Gupta became the first non-American-born partner to be elected as the firm's managing director. By the end of his tenure, McKinsey had grown from 2,900 to 7,700 staff and 58 to 84 locations. He opened new international offices in cities such as Moscow , Beijing and Bangkok . Continuing

6615-760: The firm's revenues declined. New competitors like the Boston Consulting Group and Bain & Company created increased competition for McKinsey by marketing specific branded products, such as the Growth–Share Matrix , and by selling their industry expertise. In 1971, McKinsey created the Commission on Firm Aims and Goals, which found that McKinsey had become too focused on geographic expansion and lacked adequate industry knowledge. The commission advised that McKinsey slow its growth and develop industry specialties. In 1975, John L. Neuman,

6720-539: The firm, since it prides itself on integrity and client confidentiality. McKinsey no longer maintains a relationship with either senior partner. Senior partner Anil Kumar, described as Gupta's protégé, left the firm after the allegations in 2009, and pleaded guilty in January 2010. While he and other partners had been pitching McKinsey's consulting services to the Galleon Group, Kumar and Rajaratnam reached

6825-426: The formal labor market have utilized the gig economy as a means to escape discrimination. However, the term "platform paternalism" has emerged to describe the perpetuation of caste and class hierarchies, trapping workers in jobs with very little security and no potential for long-term growth. For instance, caste-oppressed women continue to dominate low-paying work, such as cleaning and washing in households. BookMyBai,

6930-413: The gig economy through either their primary or secondary jobs. The number of people working in major economies is generally less than 10 percent of the economically viable population, according in Europe, 9.7% of adults from 14 EU countries participated in the gig economy in 2017, according to the survey. Meanwhile, it is estimated that gig worker's size, which covers independent or non-conventional workers,

7035-480: The gig economy typically perform traditionally male tasks, most notably transportation. A study in Australia found that the most common task for male gig workers was driving, particularly for Uber . Women, on the other hand, tend to perform traditionally female tasks like food shopping, care work, cleaning, and creative jobs like graphic design and writing tasks. There has also been a recent rise in women joining

7140-488: The gig workforce consists of women. The platform economy has been described as conferring a professional status that allows women to participate in paid work without disrupting social hierarchies and while managing household and childcare responsibilities. The advent of home service providers and beauticians within the gig economy has led to the formalizing and feminization of casual labor, dubbed “pink collar work". In October 2021, India’s first women-led gig workers’ strike

7245-510: The growing number of gig workers in Southeast Asia means that there is growing demand for labor regulations to protect workers against unfair labor practices. The pandemic has highlighted this concern and shone light on the vulnerability of gig workers in Southeast Asia. In Indonesia, ojek drivers in particular were left with neither a social safety net nor health protection. In Australia, the gig economy include services such as ride sharing, food delivery, and various types of personal services for

7350-452: The growth of digital applications for the delivery of goods and services, a phenomenon popularly known as uberization , despite being occurring in several countries around the world, has gained strength in Brazil , a country affected by deindustrialization and dependence on the service sector. Despite promises from Brazilian government authorities to create new laws to regulate the activity,

7455-684: The hour or year, earning a wage or salary. Outside of that arrangement, work tends to be temporary or project-based workers are hired to complete a particular task or for certain period of time. Coordination of jobs through an on-demand company reduces entry and operating costs for providers and allows workers' participation to be more transitory in gig markets (i.e., they have greater flexibility around work hours). Freelancers sell their skills to maximize their freedom, while full-time gig workers leverage digital service-on-demand platforms and job matching apps to level up their skills. Another example of temporary workers may be digital nomads. Digital nomads have

7560-418: The increased benefits or even terminating employment when they have no leeway to reduce wages. There are several gender differences within gig work from the number of women who are participating to the wage pay gap. Globally, the gender differences in participation of women in the gig economy differ. For example, in the United States, female gig workers make up 55% of the gig work population. In India, 28% of

7665-474: The influence, loyalty and zeal of its members. The firm has a policy against discussing specific client situations. A September 1997 The News Observer story said that McKinsey's internal culture was "collegiate and ruthlessly competitive" and has been described as arrogant. Ethan Rasiel's 1999 book entitled The McKinsey Way , described a culture at McKinsey's whereby members were not supposed to "sell" their services. The Sunday Times wrote that McKinsey

7770-416: The interests of clients before McKinsey's revenues, not discuss client affairs, tell the truth even if it means challenging the client's opinion, and only perform work that is both necessary and that McKinsey can do well. Bower created the firm's principle of only working with CEOs, which was later expanded to CEOs of subsidiaries and divisions. He also created McKinsey's principle of only working with clients

7875-412: The lack of flexibility. The COVID-19 pandemic highlighted the need for worker protections for women who work in the gig economy for supplemental income. Gig work has witnessed a similar gendered division that exist within traditional work. The platform economy has particularly attracted female service providers due to the flexibility it offers. For example, 80% of women on DoorDash said that flexibility

7980-420: The mandatory retirement age of 60. The firm is also managed by a series of committees that each has its own area of responsibility. By 2013, McKinsey was described as having a decentralized structure, whereby different offices operate similarly, but independently. The company's budgeting is centralized, but individual consultants are given a large degree of autonomy. As a global firm McKinsey does not have

8085-421: The minimal training necessary. A key characteristic of ghost work is the completion of small tasks to assist in machine learning or automation. Gig workers have high levels of flexibility, autonomy, task variety, and complexity. The gig economy has also raised some concerns. First, these jobs generally confer few employer-provided benefits and workplace protections. Second, technological developments occurring in

8190-565: The name James O. McKinsey & Company in 1926 by James O. McKinsey , a professor of accounting at the University of Chicago . He conceived the idea after he had witnessed inefficiencies in military suppliers while he was working for the United States Army Ordnance Department . The firm called itself an "accounting and management firm" and started out giving advice on using accounting principles as

8295-666: The other organizations with McKinsey's values and culture. McKinsey's alumni have been appointed as CEOs or high-level executives. In his 2010 publication, The Lords of Strategy: The Secret Intellectual History of the New Corporate World , business journalist Walter Kiechel traced the roots of a profound change in corporate management to "four mavericks" in the 1960s—Fred Gluck at McKinsey & Company, Boston Consulting Group's Bruce Henderson, Bill Bain at Bain & Company, and Harvard Business School professor, Michael Porter. Kiechel recounted how they "revolutionized

8400-512: The platform. Platforms like Uber assign work based on the ratings workers receive from customers. Low ratings can result in a worker receiving less work or being removed form the platform entirely, creating an environment where workers often tolerate some level of harassment to avoid a low rating that may jeopardize their earnings. Assault and harassment also place undue financial burdens on female gig workers. Since gig workers are typically categorized as independent contractors, they are not extended

8505-475: The popularization of smartphones . As a result, on-demand platforms based on digital technology have created jobs and employment forms that are differentiated from existing offline transactions by the level of accessibility, convenience and price competitiveness. Normally "work" describes a full-time job with set working hours, including benefits. But the definition of work began to change with changing economic conditions and continued technological advances, and

8610-541: The position of managing director. Davis promised a return to the company's core values after a period in which the firm had expanded rapidly, which some McKinsey consultants felt was a departure from the company's heritage. Also in 2003, the firm established a headquarters for the Asia-Pacific region in Shanghai . By 2004, more than 60 percent of McKinsey's revenues were generated outside the U.S. The company started

8715-1075: The prevalence of harassment and assault, platforms do little to protect women from bias , harassment, and violence. Some platforms have implemented preventative measures to protect both customers and workers. Most notably, Uber now requires drivers to complete anti-sexual violence training and their app now includes a 'panic button' feature that connects users to 911 dispatchers, however these measures are widely believed to be insufficient. For instance, women often face drunken and disorderly customers and are left to deal with potentially dangerous individuals on their own with little support from platforms, which provide minimal guidelines for how to respond in dangerous situations. Gender stereotypes and customer bias also mean that customers are more likely to challenge women's decisions, making it difficult for female drivers to defend themselves and advocate for themselves in customer interactions. The way many platforms are designed also pressures workers, particularly women, to sacrifice their safety in order to maintain their standing on

8820-491: The protections and benefits of traditional employees. For instance, independent contractors are not covered under the provisions of the United States' Fair Labor Standards Act (FLSA). As a result, if a worker needs to take time off to recover from harassment or assault that they experienced while working on a platform, the financial burden of that recovery time falls entirely on the worker, which means that many women continue to work under conditions that feel unsafe in order to avoid

8925-401: The public and social sector. It took on many public sector or non profit clients on a pro bono basis. By 2002, McKinsey had invested a $ 35.8 million budget on knowledge management , up from $ 8.3 million in 1999. Its revenues were 50, 20, and 30 percent from strategy, operations, and technology consulting, respectively. In 2003, Ian Davis , the head of the London office, was elected to

9030-422: The reason. In 2021, McKinsey's Australian office made two acquisitions, Hypothesis, a digital product development company, and Venturetec, an innovation consulting firm. On June 1, 2022, McKinsey announced that it had acquired Caserta, a data engineering firm. In March 2023, McKinsey announced a layoff of 1,400 employees, in a rare job cut of the company. McKinsey & Company was originally organized as

9135-482: The region the client's headquarters are located in and specialists that have either an industry or functional expertise. Unlike some competing consulting firms, McKinsey does not hold a policy against working for multiple competing companies (although individual consultants are barred from doing so). McKinsey & Company was the first management consultancy to hire recent graduates instead of experienced business managers, when it started doing so in 1953. According to

9240-410: The rules governing contributions and entitlements of social protection schemes are still largely based on full-time open-ended contracts between a worker and a single employer. As a result workers with non-standard arrangements often do not have the same income and social security protection compared to workers with standard employer-employee contracts. Modern social protection systems should be adapted to

9345-555: The same year, McKinsey had six offices in major US cities, including San Francisco , Cleveland , Los Angeles and Washington D.C. , as well as six abroad. These foreign offices were primarily in Europe , such as in London , Paris , and Amsterdam , as well as in Melbourne . By this time, one third of the company's revenues originated from its European offices. Guy Crockett stepped down as managing director in 1959, and Marvin Bower

9450-529: The so-called platform economy . This business model has different operating costs compared to a traditional business. Uberization is derived from the company name " Uber ". Uberization has also raised concerns over government regulations and taxation, insofar as the formalized application of the sharing economy has led to disputes over the extent to which the provider of services via an uberized platform should be held accountable to corporate regulations and tax obligations. In 2018, 36% of US workers joined in

9555-411: The structure developed by prior directors, Gupta also created 16 industry groups charged with understanding specific markets and instituted a three-term limit for the managing director. McKinsey created practice areas for manufacturing and business technology in the late 1990s. McKinsey set up "accelerators" in the 1990s, where the firm accepted stock -based reimbursement to help internet startups ;

9660-408: The up or out policy each year. McKinsey's practice of hiring recent graduates and the "up-or-out" philosophy, were originally based on Marvin Bower's experiences at the law firm Jones Day in the 1930s, as well as the " Cravath system " used at the law firm Cravath, Swaine and Moore . In recent years, it has consistently been recognized by Vault as the most prestigious consulting firm employer in

9765-538: The voters in California approved 2020 California Proposition 22 , which created a third worker classification whereby gig-worker-drivers are classified as contractors but get some benefits, such as minimum wage, mileage reimbursement, and others. Gig has various meanings in English, but it has two modern meanings: any paid job or role, especially for a musician or a performer and any job, especially one that

9870-836: The way we think about business, changed the very soul of the corporation, and transformed the way we work," according to the Harvard Business Press synopsis. McKinsey has been either directly involved in, or closely associated with, a number of notable scandals, involving Enron in 2001, Galleon in 2009, Valeant in 2015, Saudi Arabia in 2018, China in 2018, ICE in 2019, an internal conflict of interest in 2019 and Purdue Pharma in 2019, among others. By 2019, major news outlets, including The New York Times and ProPublica , had raised concerns about McKinsey's business practices. McKinsey & Company consultants regularly publish books, research and articles about business and management. The firm spends $ 50–$ 100 million

9975-561: The workplace have come to blur the legal definitions of the terms "employee" and "employer" in ways that were unimaginable when employment regulations in the United States like the Wagner Act of 1935 and the Fair Labor Standards Act of 1938 were written. These mechanisms of control can result in low pay, social isolation, working unsocial and irregular hours, overwork, sleep deprivation and exhaustion. According to

10080-539: The world's workforce and over 85% of the employment in Africa is considered informal. NITI Aayog defines 'gig workers' as those engaged in work outside of the traditional employer-employee arrangement. In 2020–21, the gig economy was estimated to employ 7.7 million workers, with a projected workforce of 23.5 million by 2029–30. The industry is expected to produce a revenue of $ 455 billion by 2024. 47% of gig workers are employed in medium-skilled jobs, about 22% in high-skilled jobs, and about 31% in low-skilled jobs. 93% of

10185-589: The world. In 2018, 800,000 candidates applied for 8,000 jobs. While many recruits have MBAs, by 2009, less than half of the firm's recruits were business majors; by 1999, recruits had advanced degrees in science, medicine, engineering or law. A November 1, 1993, profile story in Fortune magazine said that McKinsey & Company was "the most well-known, most secretive, most high-priced, most prestigious, most consistently successful, most envied, most trusted, most disliked management consulting firm on earth". In

10290-498: Was a "worker", i.e. not an employee, but enjoying some "employment" rights such as holiday pay and sickness pay. The Employment Appeals Tribunal ruled that Hermes' couriers are "workers" with certain statutory benefits including minimum wage, rest periods and holiday pay. In 2018, Uber lost a court case which claimed drivers are workers and therefore entitled to workers' rights, including the national minimum wage and paid holiday. Another UK company involved in "worker status" legal cases

10395-478: Was a pioneer in the industry—the "first firm to hire MBA graduates from the top business schools to staff its projects, rather than relying on older industry personnel." They were still trying to keep a "very low profile public image" in 2005. That year, an article in The Guardian said that McKinsey "hours are long, expectations high and failure not acceptable". According to an October 2009 Reuters article,

10500-408: Was elected as managing director, a role he was re-elected for in 2012 and 2015. Rajat Gupta along with another McKinsey executive, Anil Kumar , were among those convicted in a government investigation into insider trading for sharing inside information with Galleon Group hedge fund owner Raj Rajaratnam . Though McKinsey was not accused of any wrongdoing, the convictions were embarrassing for

10605-422: Was elected in his place. McKinsey's profit-sharing, executive and planning committees were formed in 1951. The organization's client base expanded especially among governments, defense contractors, blue-chip companies and military organizations in the post– World War II era. McKinsey became a private corporation with shares owned exclusively by McKinsey employees in 1956. After Bower stepped down in 1967,

10710-443: Was elected managing director, serving until 1988. Daniel and Fred Gluck helped shift the firm away from its generalist approach by developing 15 specialized working groups within McKinsey called Centers of Competence and by developing practice areas called Strategy, Operations and Organization. Daniel also began McKinsey's knowledge management efforts in 1987. This led to the creation of an IT system that tracked McKinsey engagements,

10815-486: Was led by 100 women agitating outside the office of Urban Company in Gurugram, Haryana, a platform that provides at-home services, protesting “low wages, high commissions and poor safety conditions”. This led to a lawsuit being filed by Urban Company against its workers for "instigating violence against the Company". The lawsuit stated that Urban Company was an aggregator connecting customers to independent workers and sought

10920-590: Was more prevalent among men, as well as workers in the Western Pacific and South-East Asia regions. Work has also suggested poor mental health outcomes amongst gig workers. Legislatures have adopted regulations intended to protect gig economy workers, mainly by forcing employers to provide gig workers with benefits normally reserved for traditional employees. Critics of such regulations have asserted that these obligations have negative consequences, with employers almost inevitably reducing wages to compensate for

11025-573: Was one of the first management consultancies to recruit a limited number of candidates with advanced academic degrees (e.g., PhD) and deep field expertise, and who have demonstrated business acumen and analytical skills. McKinsey publishes a business magazine, the McKinsey Quarterly . McKinsey has been the subject of significant controversy and is the subject of a criminal investigation into its business practices. The company has been criticized for its role promoting OxyContin use during

#928071