A large majority of the work force most likely feel as if their jobs are relatively safe; they don’t foresee getting laid off in the immediate future. Then when it happens it hits them like a ton of bricks. In reality – no job is safe. As long as someone is paying you to do something, they may one day decide they no longer want/need your job. Even when a job seems safe, it can end a lot faster than anyone imagines.
To illustrate this point I wan to share an excerpt from Bill Rancic‘s book You’re Hired
Anyway, here is the story:
Shook me up to where I vowed never to be in the same position to get burned like the guy on the receiving end.
Here’s what happened. There was a guy who’d been with the company for thirty years-senior management, one of the top brass. I knew him only by reputation. He’d worked his way to the top, and he still hadn’t eased up on the gas. He was the first one there in the morning and the last one to leave in the evening, that’s how focused and on top of things he was. Busted his ass for that company, and then woke up the next morning and busted it again. One day he reported early for work, business as usual, and he was met in his office by one of his superiors and a colleague. The two men had been sent to fire him, and they ended up escorting him from his office directly to the parking lot. This was a dedicated company guy, a thirty-year veteran, loyal as his career had been long, and they didn’t even let him finish out the day.
That was tough enough, but the reason for his dismissal was even more confounding: his salary, which naturally had increased over the years, was too much for the company to handle. The head of the company figured he could hire two or three junior executives for what he was paying this pro, so he cut him loose. Just like that. I actually stood off to the side and watched as they walked this poor guy out to the parking lot, and it struck me as the most incongruous thing. I thought, Man, that sucks! And it truly did, big-time. To dedicate your life to a company, to bring in a ton of business and build lots of important relationships, only to be sent packing because the bottom line couldn’t justify keeping you on.
…
This realization was my epiphany. There is no such thing as job security when you work for someone else, so why not work for yourself?
You’re Hired: How to Succeed in Business and Life
The problem with any job is that there is no guarantee that you will be able to keep it; you are at the whim of your employer. Looking at it from a different perspective, staff at the bottom or the organization chart could get laid off simply because someone who is layers above them in management said that x percent of the budget has to be cut. How good of a job you do may have little bearing on who stays and who goes.
The fact that no job is safe is a very important fact to take into consideration. There are plenty of benefits to being an employee, but the fact that there is really no such thing as job security is a reason many people decide to stop working for others and start working for themselves.
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Photo by Rowan McLaughlin
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Thanks for the reminder, DC.. I am fairly comfortable and well-regarded in my current position.. But the winds can change quickly. Companies get bought out, departments get downsized, and things can change on the dime. No matter how comfortable, you should always be networking and always have a plan for where to turn next should it happen to you.
-jefferson-
@seedebtrun I agree 100%!
Great post and great reminder in stating that you are at the whim of an employer. Yes, being an employee can lead to really good things…but in the end a company is going to look out for themselves first and foremost. Any day that “guaranteed” paycheck can simply dry up. I think this should cause us to try and be as prepared as possible. Meaning, have a good E-Fund, network and looking for ways to grow yourself professionally.
@FrugalRules In my opinion, there is no such thing as a guaranteed paycheck. Things can change, and they can change quickly.
This is a great post. I am one of those people that feels like my job is 100% safe….but who knows?!?! I think it’s good to always have a back up plan regardless.
@Holly at ClubThrifty I’ve pretty much accepted that any feeling of security is a facade. I work for a company that is one of the biggest companies in the US and we have been very successful, but there could always be restructuring or some other cost-savings setup that will leave some people without jobs. Same can be said of any company.
I think because of the last 5 years so many more people are pessimistic about everything in their lives and they have good reason to be. Unless you are in a true recession-proof industry your job can be gone overnight. your wealth can be cut sharply if there is another flash cash. Its seems like everywhere you turn something can go wrong anymore.
@OneSmartDollar I would argue even in a recession-proof industry your job could be gone overnight. People will always need health insurance, but a little restructuring to cut costs and you could be the one sent packing.
We are in the midst of a profound change in our society. Take a look at this chart, from the Federal Reserve Bank’s data bank: http://bit.ly/smalller
You can see the total number of people employed by smaller businesses (including self employment) is systematically growing as employment by large employers shrinks.It’s not just the recession. This shift started before the recession and is continuing unabated.
The shift from job security to income security (i.e. “they” provide security to “I” provide security) is the topic of a Brazen Careerist guest post scheduled for publication on the 5th of October. It says the same thing, only in a different way: the days when you could count on an employer to provide you with income stability are gone, no matter what you put in. It is what it is, and those who accept that are better off, because they will do what it takes to ensure their income is what it needs to be.
@William_Drop_Dead_Money Thanks for sharing that graph. I also think that a lot of corporations are tapping into small businesses and contractors to fulfill their needs. With so many options out there for outsourcing, they are looking to cut their payrolls. Why pay someone $50k/year+benefits+costs involved with having an employee (Building, cubicle, laptop, etc.) when you can outsource it for $10k/year to a company/individual who specializes in it or is located on the other side of the globe where the cost of living is cheaper.
@DC @ Young Adult Money You’re right.
Ya… I’m not surprised by your story. There are two from where I work along similar lines. Note that the location I work at has had many owners over the years. Once upon a time they called all the engineers to the bullpen, notified them that they were pretty much all being laid off and they had locked them out of their computers in the meantime. Most had things they wanted of their own on their computers! Another time, people with seniority were laid off as a cost saving measure, simply because they cost a lot more than junior people. Yuck.
@Ugifter That’s terrible. You hear stories like this and you just KNOW that there is no such thing as job security.
@Ugifter Also I see you got your livefyre linked! Most people hate livefyre but once it is all set up they don’t complain. I like the look of it and it saves me time so I can write posts instead of designing the comments to look nice ;)
You are certainly right that no job is safe. It is also tough to run your own business if no one is buying what you are selling. You have to be ready to roll with the punches and be proactive. Make connections and keep up your skills. It also helps to have training in a field that is less likely to suffer in bad economic times.
@Eyesonthedollar Like optometry? ;) I actually see some companies really making a killing if the recession continues (which I believe it will for at least a few more years, if not longer…but that’s another post). Luxury brands will be hurt the most – discount companies will win (Little Caesar’s anyone?!?)
@DC @ Young Adult Money
I think dental, pharmacy, or nursing would be a bit more secure. I feel optometry is going the way of pharmacy in that chains will own all the business (and doctors) eventually, which is a little sad to me, but I’m setting myself up so it won’t matter. That’s funny about Little Caesar’s. We were recently approached about starting a franchise, but have no time or knowledge right now. Maybe someday, but I don’t know if I want to be the pizza queen!
@Eyesonthedollar I have a friend who is an optometrist and him and another optometrist just got approved for a small business loan. They are opening up shop pretty soon. He recognizes the fact that he is competing with Wal-Mart, Target, etc. but he is set on starting his own shop. Has been thinking/talking/planning it for 4+ years now.
There ARE people who go to small businesses BECAUSE they are small businesses. I had to go to the optometrist this year and had to find a new one because of new insurance. I intentionally went to a lady who has her own shop. Was a much better experience than the chains.
My husband has worked for a small business for 12 years. He has seen 2 cases in which the owner has had to let everyone go except him. 2 years ago when the recession started affecting the business the owner chose to find work elsewhere, stop receiving a paycheck, and put most of the control in my husband’s hands (without him taking on the risk of losing any money) in order for my husband to still get paid. Although I know his job isn’t 100% secure, I at least know that the family that owns the business would do anything to ensure my husband keeps his job. They would hand the business over to him before firing him. We’re truly blessed to work for that family and have them as friends.
@Em23 You really don’t ever see that level of loyalty to an employee, that’s truly impressive!
I feel fairly secure in the job that I’m in, I’ve been here for 14 years now (rare in this day and age), but at the same time I’m all about creating sidelines that you can fall back on if and when the day comes when you no longer have a job. If I were to lose my job today I’m secure knowing that I’ve created online income that comes close to or is equal to my day job income. If I lose my job we’ll possibly need to cut back in some areas, but it won’t be a huge issue. Takes a lot of the pressure off when you have that fallback.
@moneymatters I’ve said this before, but people like you who I see working day after day at creating and maintaining a side income are truly inspiring to me. To see someone who has built something entirely on the side of their full-time job makes motivates me to make it happen as well. No excuses!
I agree that my job could be gone tomorrow but I’m OK with that. I can find another job if I need to. Might take a few weeks/months but I could do it. Now if I want to move I could have a new job within a month… almost guaranteed.
@Money Life and More You are a very optimistic accountant, but then again I’m pessimistic because I am seeing outsourcing in action ;) I have spent hours upon hours helping my company transition duties to India, and they get paid about 1/3 of the average cost of a CPA accountant here, and that is the equivalent of someone with a CPA and masters in accounting.
All I’m saying is even accountants aren’t guaranteed job security, especially not 10-20 years down the road.
@DC @ Young Adult Money I know enough people in enough companies and recruiters that I could find a job somewhere, just not where I want to be.
@Money Life and More I guess I misinterpreted your optimism for the accounting profession for optimism in your network ;)
OH man, this hits close to home. Ugh… maybe I shouldn’t have read it. Bf still searching for job :(
I too feel like no job is safe, even my own. I try to network with as many people as possible who may be able to hire me in event that I lose my current job.
Thanks, thanks for destroying my hopes and dreams!!!!! =(
Online Jobs Log On: http://www.onlinefreearnmoney.blogspot.in
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I being online employee know its advantages. It Removes from the stresses and distractions of the workplace and allows working independently in our own preferred environment at our own pace, professionals are often a lot happier and a lot more productive.I found a best source that is far from fraud and paid me exactly ,it even get us educated about web design courses through online and at the same time allow us to have a online job in same organisation.To view online job and php training click on – http://netultimateschool.com/
You are certainly right that no job is safe. It is also tough to run your own business if no one is buying what you are selling. You have to be ready to roll with the punches and be proactive. Make connections and keep up your skills. It also helps to have training in a field that is less likely to suffer in bad economic times.To view online php training and assured job on it click on – http://netultimateschool.com/
You are certainly right that no job is safe. It is also tough to run your own business if no one is buying what you are selling. You have to be ready to roll with the punches and be proactive. Make connections and keep up your skills. It also helps to have training in a field that is less likely to suffer in bad economic times.and i had the same through the source – http://netultimateschool.com/ … its provided php training along with safe job.