In a context of Increasing precarization And high labor informality, formalization is no longer just a legal obligation. It is a strategic tool: it increases productivity, improves access to financing and strengthens social cohesion. What can companies and workers do to advance without getting lost in the attempt?
Is it true that the future of work has already arrived? If so, what is, in this new context, the role of the worker and which one of the company?
Although the business world fulfills a clearly economic role, its impact goes much further: IIt directs directly in the development of people. Companies also have a key social responsibility for the growth of countries and their communities. In Argentina, one in three formal workers lives below the poverty line. This proportion rises to 70% when it comes to people used in informality.
Precarization deeply impacts the ability of households to face essential expenses and families seek to compensate for the deterioration of their income with more work. This greater pressure on the market translates into the growth of unemployment, precarious employment, underemployment and subsistence and, in parallel, in a fall in full employment.
In our country, where we have the highest informality rate in the region, the formalization of workers remains a challenge. Although, at first, informality is presented as the shortest path and that allows reducing costs, the consequences in the medium and long term are negative, both for the community of which the company is part, and for the business itself.
The benefits generated by the formalization of a company are clear, but the challenges or challenges that entail. For SMEs, the formalization of its employees has high costs associated with taxes and social contributions. To this is added a complex network of procedures to achieve the objective. This requires specific knowledge about how to sail these processes. From the point of view of workers, formalization is often understood as a decrease in their salary, due to the ignorance of what the short and long term benefits mean with respect to social work, retirement and other points related to social security.
How to start the way of formalization without getting lost in the attempt?
Know the state programs that support the SMEs bringing fiscal benefits for the formalization of its employers the first and main starting point. Having a network of companies and organizations that accompany the process so that they can be consulted or brings solutions, is a second key pillar. The construction of business networks that share good practices, management tools and accounting advice is essential for formalization to cease to be an individual burden and transform into a collective strategy.
The benefits of formalization are many and diverse. From the increase in productivity by promoting a healthy environment, which allows a greater commitment of employees until the increase in credibility against customers or greater access to financing. World Bank reports realize that high growth companies are usually formal and represent more than 50% of all new jobs.
The formalization opens the door to concrete benefits in the short, medium and long term, not only for the company, but also for the network of relationships in which it is inserted. In a broader sense, it helps reduce social vulnerability and strengthen community cohesion. When formalizing, companies get closer to society and position themselves as a key engine for sustainable development. It is time to understand that the future of work is not only technological: it is human, and it is built with decent employment.
Fundación pushing promotes a network of companies that promotes formal employment as a tool for social transformation. Through the accompaniment and dissemination of good hiring practices, it facilitates that more and more SMEs are encouraged to take the step towards formalization, generating more sustainable, inclusive and productive work environments.
RESPONSIBLE FOR LABOR DEVELOPMENT IN FOUNDATION PUJJA
Source: Ambito
