In the 2010's and beyond, there will be no return to the "customary" jobs market and "traditional" exist from recessions. In the past, we could always depend on the creation of new small businesses to pull us bootstrapping out of recessions. After all two-thirds of new jobs in the past two decades were generated by this entrepreneurial segment. But there is a perfect storm against it this time: The lost decade of the stock market, the housing bubble burst and corresponding loss of personal wealth, and the deepest recession of (most) of our lifetimes have depleted the financial well-being of our nation's families. These conditions have almost eliminated risk-taking as workers are postponing retirement, frantically rebuilding savings accounts, and scrimping to fund their children's college education. Coupled with the unwillingness of the banking industry to fund startup operations, the small business pathway to success is all but blocked for working professionals and young entrepreneurs.
The government, despite its intent, is not really doing much to better the situation. Tax credits for small businesses hiring new workers is a commendable idea, if you happen to have remained profitable during the past two-year business bloodbath, and actually have profits and taxes to pay. But worst of all, is the huge deficits the government is projecting for the rest of the decade. We, as a country, cannot keep spending two times the tax revenue taken in - just as families cannot overspend their incomes for long. The day to "pay the piper" will come. Foreign governments and businesses will not continue to feed the "black hole" called the US National Debt. Therefore, the government will not be able to flood the market with stimulus dollars in the future (nor have these programs created anywhere near the number of jobs projected). Net, net, things will never be the same. We are on our own to provide job security going forward.
Charles Handy, in "The Age of Unreason," predicted in 1989 that just after the turn of the century less than half the work force in the industrialized world would be in "proper" full-time jobs in organizations. If you tally the 26.5M unemployed/fallen off benefits/given up looking, 27.7M part-time, 17.6M sole proprietors, and the 5.3M stay-at-home parents it equals just over one-half of the 153M US workforce. Plus included in full-time jobs you will find 11.4M temp company placement workers and an untold number of direct contract workers - so Professor Handy was right on target. This trend will continue away from the traditional employer - employee relationship. We will see virtual billion dollar corporations in the future with a half-dozen employees - with the bulk of their businesses outsourced to other firms or individuals. Corporations for decades have outsourced legal, advertising, marketing, logistics, shipping, travel planning, R&D, manufacturing, design, investment, facilities, accounting, etc. Much of this outsourcing has given rise to the increasing number of small business startups, as recipients, during periods of economic growth.
Where does this leave the American worker? How should he or she prepare for the future? How will they support their families going forward? First, you must get in the mindset that it is okay to work as a contingent worker on contract or temporary assignment. Get weaned off the dependence of the bi-weekly paycheck and benefits package offered to full-time employees, because those positions are increasingly going away. (More and more firms are reluctant to hire permanent workers because of doubts about the durability of the economy.) As many people have learned the hard way over the past two years, it takes approximately one month for each $10,000 of annual income to replace a job, e.g. ten months to land a new $100,000 job. Get your finances in order, with savings to cover any period of unemployment. This is easier said than done. But the number one reason workers stay in stagnant jobs and don't progress in their careers is that they cannot afford to quit and are afraid to risk their current positions to look for a new one.
Do a thorough analysis of your skills - those mastered during your career so far - because that is what companies will be looking for, not the job titles held. Make sure these skills are highlighted on your resume - backed up by the positions you have mastered and your education. Speaking of education, it is a never-ending process. If you are not gaining knowledge and progressing in your field - simply maintaining the status quo - you are actually slipping backwards. You risk loosing ground to co-workers and competitors. Seize every opportunity for additional training and take courses to broaden your perspective. Become an expert in something(s) and plan for your future, whether it be to start your own business or consultancy someday, or just to be the best you can be as an employee or contractor for a company.
The only job security you will have going forward is the knowledge of how prepared you are for the future; how financially sound you are to weather employment storms; how current your education is and its relevancy; and the skills you have mastered to create value for an organization.
Richard S. Pearson is the Author of 5 Necessary Skills to Keep Your Career on Track. He has held vice-president positions with four multibillion dollar travel industry companies and three Internet early stage companies. He has a BA degree from Regis University in Organizational Development. His experience has given him a unique perspective on how to navigate the organizational structures of both large and small companies. He has hired and trained hundreds of employees from frontline salespeople to vice presidents, and coached many through their careers. He is currently working on facilitating the large increase of travel between the US and China, which is taking place. http://www.5necessaryskills.com |
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