Right now companies have a lot more work to care about taxes and benefits for all their employees. I'd expect less overhead for them.

I see the issues for poor people you mentioned, but I don't think that couldn't be solved easily either. The state could still jump in when problems appear. When the rates are set accordingly, it can be made easy for anyone looking for a position to get it (in return more companies would struggle to meet the conditions, so this has to be weighted very carefully).