Update your settings

Wondering what a fissured workplace is and how it affects your job security, benefits, or pay? You’re not alone. As companies shift from traditional employment models to outsourcing, gig work, and subcontracting, more workers—across all levels—are feeling the impact. This shift, known as the fissured workplace model, changes how companies organize labor, often creating more distance between workers and the companies they serve. But what does that really mean for workers, especially in 2025’s evolving economy?

What Is a Fissured Workplace?

A fissured workplace is a business model where lead companies outsource core functions to third-party firms instead of hiring directly. For example, a hotel chain might subcontract cleaning to a staffing agency, or a tech company might outsource support roles. Workers still perform essential tasks—but they’re employed by intermediaries, not the company whose brand or services they uphold. This structure, coined by economist David Weil, has expanded beyond food and cleaning services to include roles in HR, IT, accounting, and healthcare.

How the Fissured Workplace Affects Workers

On the surface, fissured workplaces can offer flexibility—especially for freelancers and short-term contractors. But the downsides are harder to ignore: low wages, job instability, lack of health benefits, and poor safety protections. Contract workers are more vulnerable to exploitation, and studies show they face a significantly higher rate of workplace injuries. Even when workers are full-time, being one step removed from the lead company often means fewer rights, fewer resources, and less career security.

Fissured Workplace and Economic Inequality

The rise of the fissured workplace contributes directly to income inequality. Researchers like Dustin Avent-Holt and Don Tomaskovic-Devey have linked growing wage gaps to firm-level disparities: large companies offer high wages and benefits, while their smaller contract partners often don’t. As a result, many workers feel disconnected from the larger economy—skeptical of claims about job growth and prosperity when their own experiences tell a very different story.

Why the Fissured Workplace Matters to Everyone

The effects of fissured workplaces go beyond workers—they impact consumers too. In industries like healthcare or food service, fragmented labor can lead to inconsistent quality, overworked staff, and safety lapses. Patients, diners, and clients may all pay the price when companies prioritize cost-cutting over cohesive teams. As the fissured model continues to spread, it's critical to ask: Are we building an economy that values people—or just profits?