Boss Blog: Wednesday, July 5, 2017
Employment in 2017
Welcome to this week’s edition of Boss Blog. Over the course of the week in the world of Budget Boss, we have been discussing jobs and employment. I have tackled many different topics in that realm this week including job hunting, employee benefits, and efficiency. Today’s post will be all about the current landscape of the job market. We are in an age of automation, artificial intelligence and abandonment of traditional employments standards. We are stricken with fear, uncertainty, anxiety and a level of complacency. Navigating through this terrain can be scary. It almost seems as the more technologically advanced we become, the less in tune we have become with what’s actually important. In this post, I will speak to three key areas of our employment market including the past, the present and what’s next. I hope you find it informative and insightful.
What’s gone?
- The ability to succeed with little to no skill
Gone are the days when you can have a relatively successful life without a skill. You used to be able to drop out of high school, get a decent job in unskilled labor or administrative work and then work your way up to a normal life. That life included home ownership, a car, kids and a comfortable retirement. Competition is the name of the game these days.
University enrollment in Canada in 1975: 371,062 2015: 1,700,000 (Universities Canada)
- Good Pay and Benefits
Seems like having a job with good pay and benefits was the standard, not too long ago. These days it seems you have to choose one or the other or neither. This is especially the case when you are just starting out. At a time when your security and wealth are low, it seems the options are very few. Many positions start with unpaid internships that have no guarantee of employment.
Average wage for those age 15-24 years old: $14.60 an hour (StatsCan)
- Pensions
Companies have wiped their hands clean of the pension program. There are some left but many have adopted the “fend for yourself” method of retirement planning for employees. Some are offering contribution matching but even those are few and far between. The full ride pension has become a thing of the past and even places that offered them are weeding them out.
Between 1977 and 2011, the proportion of the overall employed population covered by Registered Pension Plans declined from 52% to 37% (StatsCan)
- Long-Term Employment at one job
The stark reality is that you will probably hold many different jobs in your lifetime. I think back to my parent’s generation and people would hold one to three jobs in their lifetime. My dad had 2 and my mom had 3. Those days are long gone. Not only will you experience many different jobs but also pursue many different fields. Going back to school after work is also a very strong possibility these days.
According to the Bureau of Labor Statistics, the average worker currently holds ten different jobs before age forty, and this number is projected to grow. Forrester Research predicts that today’s youngest workers will hold twelve to fifteen jobs in their lifetime.
What’s left?
We appear to be in an era of extreme competitiveness. Where does all this competition come from? Straight from the top! With companies extremely worried about their bottom lines and share prices the one thing that can always be trimmed is employees and their benefits. Decades spent battling unions and slowly eroding their strongholds have left employers with free reign over determining their worker’s futures. Many university graduates come out of school flooded with debt and enter a job market that offers them little in the way of compensation. Add to that an expensive housing market, high prices for essentials, and heavy consumer debt and we have a recipe for trouble. Jobs are being done by computers and efficiency is being tackled at an all-time rate. Your benefits and your retirement needs are being passed on to you, in an effort to cut costs. There are some businesses that will cover part of the cost and it seems that has become the norm. The lack of benefits leaves employees vulnerable if they do become injured or ill. It can be scary and unsettling to know that any mishap could leave you exposed.
What now?
The mentality of the employer has shifted. They have become far more concerned with profits and stock prices than your well being. They have shifted the responsibility off of them and put it on you so what should you do? Embrace it! For far too long we have been dependent when in all reality it doesn’t help us to be that way. It actually makes us more vulnerable, more expendable and more prone to disaster.
- Take Control of your Employment
Many people stop the job hunt when they get a job. My advice to you is to never stop looking for a job even when you have one. This helps in two key ways. 1) You never know when you may lose your job so having an ear to the ground of the job scene is essential. 2) The grass isn’t always greener on the other side, but sometimes it is. You don’t make lateral moves, but if there is a job with better pay, better benefits, upward mobility, is what you love, or a better environment than jump ship. In this environment, organizations have proved themselves to owe you nothing. This may suck, but it also clarifies your own situation. You absolutely owe them nothing. Leave on good terms if you find something better, the key word being “leave.” Don’t forget about side-hustles either. They could end up being your main hustle during tough times!
- Take control of your safety nets
Everything your company can offer you in the form of benefits you can get yourself. For the most part group benefits are cheaper than personal but they are also less efficient. They often don’t cover you the way you want or need. Personal life, disability, critical illness and health insurance are all bought on your terms with the benefits you want. Do they cost, yes, but they also provide you with the exact coverage you want. The same goes with personal savings and retirement planning. Any retirement plan your company can provide you can get on your own. You also can invest your money the way you want and not the way your company wants. Is free money nice, hell yes! But if it is not available, do it yourself. Self-employed people have been doing it since the dawn of time so don’t complain. Get creative and get proactive.
- Set goals in everything
Your career is lacking, change it. Need to upgrade your education, do it. Don’t have money saved up, save your money. Every aspect of your financial life should be about goal setting including your employment. For far too long it has been too many people’s agenda to get a job, sent up a tent, and camp till retirement. Do you ever wonder why the pensions and benefits are gone? Part of the reason is due to of this mentality. Don’t think it’s true? Drive past a construction site. You will see 5 guys sitting around while one guy digs the hole. That kid digging the hole isn’t in the union and doesn’t have benefits yet either. You must take an aggressive stance in your life when it comes to goal setting. Challenge yourself and climb the ladder. Climb it in work, savings and your personal life. You won’t be denied if you have this approach.
In this post, I took a bit of a negative tone early on. This was for the specific reason of clarity. It is not what I know that scares me; it is what I don’t know. Seeing the angles is important. When you know the storm is coming, you can hunker down or navigate through it. Too many people these days are blindsided by reality and allow it to ruin them. With clarity comes strength and preparedness. Everything will not be given to you. Learn that early on and you will be richer than you can imagine.
“Greatness is a road leading to the unknown.” – Charles de Gaulle
https://budgetboss.ca/boss-blog-four-cornerstones-financial-freedom/
Facebook – @JoeBudgetBoss LinkedIn – Joseph James Francis Quora – Joseph James Francis
Twitter – @JoeBudgetBoss Instagram – @JoeBudgetBoss
Joseph James Francis is a Financial Advisor. You can find him on various social media platforms and at budgetboss.ca.