Job Security is Dead... and Nobody Cares

jobs are not what they used to be the average  time an employee spends with their company is now   at the lowest level ever and that's by Design we  have gone from full-time to part-time to Casual to   Gig work lowering the expectation of a long-term  professional relationship every step of the way   if this didn't do enough Studies have shown that  many workplaces are now intentionally promoting   the fear of job losses in an attempt to motivate  workers and keep costs down but this is usually   a really dumb idea the death of job security is  bad for workers and bad for companies but nobody   cares anymore so we have immediately seen Andrew  layoffs we have seen price increases so that's   inflation teachers and staff at schools from coast  to coast could soon be out of the job 15 million   new jobs in just three years a record musk said  the company would look to reduce headcount by   around 10% already piling up this year and we're  just a few weeks into 2024 up until the 1980   it wasn't unusual for workers to spend their  entire professional careers working with just one   company company loyalty was highly valued by both  employers and employees and the threat of getting   laid off or fired was incredibly low if you ever  watch old films and see someone getting fired as a   major plot point just remember it actually was  a big deal back then third prize is you fired   but according to data from the Bureau of Labor  Statistics those days are long gone the average   tenure of young employees these days is less than  a third of the Baby Boomers exiting the workforce   I don't want to sound too old here but back in my  day people actually cared about losing their job   but today getting fired or laid off from your  company just makes good content to post on Tik   Tok this is a bad trend for companies because it  takes away their biggest stick the fear of getting   fired is always going to be a motivator in the  workplace there really is no way around that if   you don't do your job or cause too much trouble  for the company you are going to lose your job   along with the pay and benefits that come with it  but as the great Peter Gibbons would say that will   only make someone work just hard enough to not  get fired the death of job security means that   people just expect to lose their job at some point  in their career these days but there are three big   reasons why it was allowed to get this bad and  three reasons why nobody really cares anymore   the first reason is that companies give up on  training their own staff there was an old joke   about company Staffing that goes something like  this the CEO and head of HR are arguing about   the cost to train staff the CEO asks what would  happen if we spent all this money and they quit   to which the head of HR responds what happen if  we don't spend the money and they stay but as more   people move jobs more often the CEO's argument is  actually starting to make sense research conducted   by Peter Capelli the director of the Wharton  School Center for human resources found that   the time and money spent on staff training  within companies has fallen drastically in   1979 the average worker received 2 and 1/2 weeks  on the job training every single year by 200 4   it was just 11 hours and most of that was safety  training not developing new skills a more recent   follow-up survey conducted by the same team in  2011 found that only 1 fth of workers received   any on the job training at all within the last  year companies don't want to train people because   they are leaving their jobs more frequently  than they used to so they are only willing to   hire employees that are already able to do the  job standardized systems have made this a lot   easier for them to do if you are a professional  office worker it's almost a prerequisite to   have a basic Proficiency in Microsoft Office  especially Excel and every profession now has   its own industry standard productivity programs  if you are a creative you use Adobe suite if you   are in sales you use HubSpot or comparable CRM  and if you're in marketing you need to know your   way around a box of crons oh in the advertising  analytics back end of Google meta and Linkedin   since these skills have become the standard for  all employees companies can hire people that are   already ready to work on day one where in the the  past they would need a lengthy training program   on the unique in-house systems of that particular  company but standardized programs have also meant   that people can find a new job that they are  qualified for with less barriers which means   they switch jobs more often which means companies  invest less into training unloyal staff which   creates even more need for industry standard  systems the ultimate incarnation of this trend   is platform-based gig workk the professional  relationship for this kind of work lasts as   long as the app is running and Riders often  work between multiple apps at the same time   to maximize earning and minimize downtime if you  want to get ahead in a professional career these   days I'm sorry to tell you but you are going  to have to invest some of your own time and   money into training yourself even if it's just  to take a meaningless qualification box companies   aren't going to train you anymore which means  if you quit or get laid off it's not as big of   a deal for either party but the decline of on  job training is just the first reason so it's   time to learn how money Works to find out why  job security is dying why nobody cares and what   happens when nobody has a job for long enough to  be good at it this week's lesson is sponsored by   manscaped just in time for Father's Day manscaped  introduces the must have gifts for every dad meet   the handyman and the weed whacker 2.0 first up the  handyman the face shaver designed for dads who can   handle everything but their unruly facial hair  featuring a dualblade system including a standard   foil shaver and a long hair leveler Blade the  handyman ensures a close smooth shave tackling   up to 3 days of growth effortlessly what makes  the handyman exception is its skin safe technology   significantly reducing the risk of Nicks and cuts  and its waterproof design making it easy to rinse   under the faucet now onto the weed whacker 2.0  this nose and ear trimmer is perfect for dads   looking to manage those tricky areas it features a  7,000 RPM Motor and a 360° rotary dualblade system   for efficient grooming the weed whacker 2.0 is  cordless waterproof and it comes with a high   performance battery that lasts up to 45 minutes  ensuring it's always ready when Dad needs it don't   don't settle for ordinary gifts like coffee  mugs this Father's Day opt for something from   manscaped like the handyman or the weed whacker  2.0 and help Dad Elevate his grooming game from   caveman to gentlemen head over to manscape.com  and use promo code hmw2 and get 20% off plus   free international shipping make this Father's  Day one to remember with manscaped the death   of job security is bad news for companies even  if they were the ones that caused it the simple   fact is that when you get a new job you aren't  going to be very good at what you do until you   learn your new role standardized systems have  made it easier to transfer basic competencies   between companies but even little things like who  you talk to about authorizing your expense reports   the names and faces of clients or how the office  printer Works they all take time for new people   to learn according to a study conducted by Gallup  a business analytics company it takes the average   employee 12 months before they reach their full  performance potential in their new role other   Studies have suggested that new employees are not  fully autonomous in their responsibilities for the   first first 18 months of their employment if new  entrance into the job market are only spending 3   years in their jobs on average that means they are  going to be spending a third of their career just   getting up to speed in their new role that means  a loss in productivity for the companies they work   for right wrong worker productivity is actually  at all-time highs so that begs the question is   this in spite of lower job security or because of  it the second reason that job security has been   dying is that it's a great motivation tool if the  fear of losing your job is only enough to motivate   you to do the bare minimum to avoid that tap on  the shoulder then you should know that companies   have responded by moving those goal posts a study  conducted by economists at Manchester and Cardiff   University looked at the motivating factor of what  they called manufactured job uncertainty in this   report researchers tried to work out why fears  of job security was going up even when the rates   of people being fired from full-time positions  was stable they did this by comparing companies   in America and the UK who are very happy to lay  people off to appease shareholders to companies   in Jaan which has a strong culture of never firing  people a small tangent but Japanese businesses   actually take firing people so seriously that they  have an alternative practice called o Dashi Bea   but this Loosely translates to workers Purgatory  according to Japan Intercultural Consulting a firm   that advises businesses operating in the Japanese  Market workers Purgatory happens when an employee   chronically underperforms in the role instead of  getting fired they are typically placed in a room   often windowless where they have nothing to do  in many cases their business cards are taken away   and they are forced to do menial mind-numbing  tasks or given nothing to do at all so yeah   Japanese companies would rather put their workers  in solitary confinement than fire them making them   a pretty good contrast to companies in America  and the UK what the economists found was that   even when job tenure wasn't actually being reduced  by layoffs or firings changes to corporate control   and especially company mergers or Acquisitions  raised uncertainty companies notice that by   hyping up this uncertainty and making workers  compete against each other to maintain their   position in a theoretical downsizing they  could get people to work harder companies   doing this would rank the performance of their  teams and compare them to one another highlight   staff errors and downplay strong performers so  that managers and their teams always felt like   their job was at risk the Japanese firms despite  actually having shorter tenures for managers and   operating with more business uncertainty thanks to  a weaker overall economy had a higher sense of job   security mainly thanks to a culture of protecting  workers even at the expense of shareholders in   a wonderful twist of fate though the study also  found that this is not really working on younger   employees Decades of wellp publicized layoffs  means that younger managers have no expectation   of job security and aren't afraid of losing their  jobs as much as older managers who come from a   time when people could spend their entire careers  with one company the rank and yank strategy only   works to boost productivity for so long a company  should get rid of bad employees but if it makes   everybody feel on edge about their jobs forever  then even the best employees are just going to   look for better opportunities elsewhere younger  workers have also realized that changing jobs more   frequently especially early in their career is  the best way to move up the corporate ladder and   secure pay increases I will say it in every video  I can but if you want to increase your earnings in   your career multiple studies suggest that the  best way to do this is to change jobs roughly   every 2 years and always be on the lookout for  better opportunities companies do not value staff   loyalty anymore because they can't and that's the  third reason why job security is dying it costs   businesses a lot of money to hire new employees  and then more money to pay them while they're   getting good at their job if they are hiring  externally for a more senior position they   will also need to pay that new hire more than an  internal promotion so if it makes no sense then   why do companies keep doing this well it's easier  an internal promotion means someone else needs to   be promoted to fill that person's position and  someone else needs to be promoted to fill theirs   now instead of your company having one employee  in a new job it has five hiring managers could do   this or they could just hire external candidate  that already knows the systems and then get back   to scrolling Reddit in their office workers also  don't believe in job stability either things like   employee pension plans and career development are  all the responsibility of the worker now and if   they are accepting that responsibility they also  want the freedom that comes with it some companies   like Consulting legal and accounting firms have  built their entire Workforce around limited time   employees overworked underpaid graduates will  stick it out in entry-level roles because they   know it looks good on the resume when they  apply for a real job in 2 years companies   can't attract High performing workers by bragging  about how secure they are even companies that were   considered American institutions have fallen apart  too many times for people to think that their job   is secure and job security isn't a selling  point worth taking a job for because people   have learned not to care so congratulations  Corporate America you kind of played yourself   there's so much more I want to say on this topic  but it wouldn't make for a good YouTube video for   things like that make sure you're subscribed to  my totally free email news newsletter compounded   daily if you want to get articles that can't be  made into videos the bonus fourth reason that   job security is dead is this man right here  go and watch my new video to find out how an   unremarkable chemical engineer worked his way up  to personally reshape Corporate America into what   it is today all while destroying his company in  the process to keep on learning how money works

Channel: How Money Works

Views: 587,882

Keywords: how money works, career, job, job security, best jobs, most stable career, low stress jobs, highest paying jobs, job training, most in demand skills, how to get a job, how history works, business, finance, money, layoffs, worst jobs, highest paying degree, job security is dead, mass layoff, tech layoff

Id: 4DbiPqu5e3s

Length: 12min 22sec (742 seconds)

Published: Tue May 28 2024