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Job security is an illusion
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It’s Wednesday morning, a day like any other. I walk to the elevators, slightly lend a smile to the man to my right and the woman to my left who are also waiting. I’m thinking about the clients I need to call today. I have so much to do. After coming to my floor, I grab some coffee and head to my office and begin my day as a Senior Sales Director.
Later that afternoon, an all staff meeting is suddenly called. The announcement is straight forward and abrupt - the company is downsizing, starting with my department: twenty-two people laid off as of today. My mouth drops. By four o’clock, I’m packing up my office, with tears welling in my eyes, staring at the framed picture of my husband and two girls. I box it up, along with all my other stuff. I was told I’d get a good severance package, but it’s the principle. I no longer have a job, nor do I work at the company I’ve been loyal to for the past twelve years.
Remember the Corporate American way? You had a secure job and a nice corporate pension plan waiting for you at retirement in the 50’s and 60’s. Whoever thought the days would come when big U.S. companies would start to cut tens of thousands of jobs per year?
Job lay-offs are all too common. People often live paycheck to paycheck as it is, and the financial burden of a lay-off can be devastating to a family. The sad reality is that anyone who works in Corporate America is replaceable. Downsizing, cut-backs, outsourcing, and saving money is more important to a company than keeping even its most loyal workers. It is not uncommon to meet someone who’s been laid off two or more times throughout half their career.
Some of the largest layoffs in history have occurred recently. Kmart announced in January 2003, that they would cut 37,000 jobs. General Motors cut 30,000 North American manufacturing jobs and closed a dozen plants in 2005. In 2009, General Motors filed for a Chapter 11 bankruptcy. As part of the reorganization, GM is expected to cut 20,000 jobs and close about a dozen plants by the end of 2010. (CNNMoney.com, June 2009)
In 2006, Ford Motor Company announced its plans to cut 25,000 to 30,000 jobs, or 20% to 25% of its North American work force. (CareerJournal.com, 2006) Ford Motor Company's finance unit will eliminate 20 percent of its workforce, or about 1,200 workers in 2009. (The Detroit News, January 2009)
What happened to Job Security?
There was a tremendous decline in Job Security between 1967 and 1997. Some reports suggest a fundamental change in the employment relationship and is only a perception of a lack of job security. Not so. When there are widespread layoffs at large corporations, people start to panic and become anxious. Rumors fly and everyone’s looking within their own companies, wondering if layoffs are in their future.
There was perception if you did well on the job then you were safe, but in the late 1980’s something changed. Corporations began to downsize in America. According to a New York Times article published January 9, 1989, “Job security replaced wage increases as the top contract goal of many American labor unions. When push comes to shove, workers are fearful and are willing to accept less than their initial job security demands.”
Evidently, this repeated in 2000. “There were 15,738 layoff events and 1,835,592 initial claimants for unemployment insurance in the 50 States and the District of Columbia. Both the number of events and the number of initial claimants were higher than in 1999, when layoff events totaled 14,909 and the total number of initial claimants was 1,572,399.” (FindArticles.com March 2001)
Talented and untalented workers were being boxed up and shovel out the door, while outsourcing was on the rise. Many were dedicated to their job’s and couldn’t understand why layoffs were happening to them. Denial sets in first, followed for some, by anger and resentment.
A recent global study conducted by Drake Beam Morin Worldwide Network, the world’s leading provider of human resource solutions in employee selection, development, retention and transition, reveals that “one out of every 10 individuals who involuntarily lost their jobs in 2000 first told a colleague of the job loss – a strong signal to employers that the manner in which they lay employees off directly impacts their reputation and ultimately their future recruitment and retention efforts.” (Tips for Handling Layoffs, February 2001)
What does the future hold for Job Security?
Economists are optimistic in their evaluations, the politicians can’t agree, and many citizens seem to feel as though the world and all the lawmakers are totally screwing things up. Financial planners are wary and promote investing, especially for baby boomers, and workers fear for their future, well aware job security is a myth.
“The current state of the economy, the lingering recession, and the evaporating image of long-term employment security are topics firmly entrenched in many workers' daily conversations and business transactions. Those who do have jobs wonder what is on the horizon for their own positions and future career stability,” writes Larry S. Beck in USA Today.
What are the solutions?
Quite frankly there aren’t any, because to have complete job security would be equivalent to living in a perfect world. There are too many elements, organizational changes, government mishaps, economical misfortunes working against complete job security in America. However, there are steps and tips you personally can take in case you are ever faced with a layoff.
- • Create a plan to move forward
If you have a family, you must have a plan B. Nothing is promised to us and things happen. - • Stay on top of what’s going on within your company
Attend meetings, stay informed, and don’t be afraid to ask questions. Usually, there is an annoucement that layoffs are about to happen, but sometimes there is no warning. Many have looked back, and wish they’d paid closer attention. - • Open a savings or investment plan now
There can be solutions to job layoffs. The first solution will probably always consist of filing for unemployment and looking for another job. However, even before you get to that point, it is crucial to have something in place for emergencies.
Saving is so important. There are many vehicles you can choose: life insurance, savings accounts, CDs, IRA’s, 401K, investment accounts that earn interst, and more. Most people think they don’t have the money to save. They need to think: ‘If I don’t save now, then how will I deal with the pain of a financial burden, if I’m faced with a layoff or other misfortunes?’
• Increase your value
While on the job, seek new skills and learning opportunities. Also, build and maintain your own network. If you need to interview for new job, you can offer more skills and abilities. - • Start your own business
Turn your hobby into a business, or better yet, start your own business, which has been called the ‘new job security’ for many. Thousands of people are starting up their own businesses and there are many books written on the subject.
Unfortunately, job security no longer exists in the United States. However, there are steps you can take today to build a secure future for you and your family. Remember to always save and have a backup plan.
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