Job Security is Dead... and Nobody Cares
Summary
TLDRThe script discusses the decline of job security and its impact on workers and companies. It highlights how the average job tenure has decreased, with companies promoting job insecurity to motivate workers. The script also points out that companies have reduced investment in staff training, leading to a cycle of hiring already skilled workers and less job loyalty. The death of job security is portrayed as a self-inflicted wound by companies, affecting productivity and employee motivation.
Takeaways
- 📉 The average tenure of employees with their companies is at an all-time low, reflecting a shift from long-term employment to more casual and gig work.
- 📈 Some companies promote job insecurity to motivate workers and reduce costs, but this approach can be counterproductive.
- 👨🏫 The decline in job security is a result of companies giving up on training their own staff, preferring to hire individuals with existing skills.
- 💼 The rise of standardized systems and software has reduced the need for company-specific training and increased job mobility.
- 🚀 The gig economy exemplifies the trend of short-term professional relationships, with workers often juggling multiple platforms to maximize earnings.
- 💼 Employees are now expected to invest in their own training and development, as companies are less likely to provide it.
- 📉 Job insecurity can be demotivating, leading to a decrease in productivity and an increase in job-hopping.
- 💼 The fear of job loss was once a powerful motivator, but as job security declines, this fear is no longer as effective.
- 🌐 Studies show that it takes an average of 12 months for an employee to reach full performance potential in a new role, suggesting that frequent job changes can lead to a loss of productivity.
- 💼 Companies often prefer hiring externally rather than promoting internally to avoid the domino effect of promotions and the associated costs.
- 💡 Job security is no longer a significant selling point for jobs, as workers have come to expect job instability and prioritize other benefits like flexibility.
Q & A
What is the current average time an employee spends with their company?
-The average time an employee spends with their company is now at the lowest level ever, with the script not providing a specific number but emphasizing it's a record low.
How has the nature of employment evolved over time?
-Employment has evolved from full-time to part-time, casual, and gig work, progressively lowering the expectation of a long-term professional relationship.
What is the impact of promoting job loss fears in the workplace?
-Promoting job loss fears is generally a counterproductive idea as it can be demotivating and harmful to both workers and companies.
Why have companies reduced their investment in staff training?
-Companies have reduced their investment in staff training due to the increased frequency of job changes by employees, making it less cost-effective to train staff who may leave soon.
What is the average tenure of young employees compared to Baby Boomers?
-The average tenure of young employees is less than a third of that of Baby Boomers, indicating a significant decrease in job retention among younger generations.
How has the concept of job security changed over time?
-Job security has drastically decreased, with the fear of getting fired no longer being a significant motivator for workers and companies not valuing long-term employment as they used to.
What is the role of standardized systems in the current job market?
-Standardized systems have made it easier for companies to hire employees who are already proficient in industry-standard tools, reducing the need for extensive in-house training.
Why are companies hesitant to invest in training their staff?
-Companies are hesitant to invest in training their staff because employees are changing jobs more frequently, making the return on investment uncertain.
What is the average time it takes for an employee to reach full performance potential in a new role?
-It takes the average employee 12 months to reach their full performance potential in a new role, according to a study conducted by Gallup.
How does job hopping affect an employee's career progression?
-Changing jobs more frequently, especially early in one's career, is seen as a way to secure pay increases and move up the corporate ladder.
What is the role of external hiring in the decline of job security?
-External hiring for senior positions can be more costly for companies and may contribute to the decline of job security as it indicates a preference for experienced outsiders over internal promotions.
Outlines
📉 The Decline of Job Security
The paragraph discusses the significant reduction in the average tenure of employees with their companies, moving from full-time to gig work and the intentional promotion of job loss fears to motivate workers. It highlights the historical context where job security was high, and the shift to a culture where job loss is normalized and even expected. The paragraph also points out that companies have reduced investment in staff training due to higher turnover, leading to a reliance on industry-standard systems and a vicious cycle of less training and more job hopping.
🎁 Manscaped Father's Day Gifts
This section of the script is a sponsored segment promoting Manscaped's Father's Day gifts, specifically the 'Handyman' face shaver and the 'Weed Whacker 2.0' nose and ear trimmer. These grooming tools are advertised as high-quality, efficient, and designed to tackle tricky areas with ease. The promotion includes a discount code and free international shipping, aiming to make Father's Day memorable with these practical and innovative products.
💼 The Impact of Job Insecurity on Productivity
The final paragraph delves into the effects of job insecurity on worker productivity and company performance. It discusses how the fear of job loss can be a powerful motivator, but also how it can lead to a lack of loyalty and an increased job-hopping culture. The paragraph explores the idea that companies may be shooting themselves in the foot by not fostering job security, as it can lead to a loss of high-performing employees and a constant cycle of onboarding new staff. It also touches on the concept of 'rank and yank' strategies and how they may not be as effective with younger workers who have grown accustomed to job instability.
Mindmap
Keywords
💡Job Security
💡Gig Work
💡On-the-Job Training
💡Standardized Systems
💡Manufactured Job Uncertainty
💡Job Tenure
💡Performance Ranking
💡Internal Promotion
💡Job Hopping
💡Corporate Culture
💡Employee Turnover
Highlights
The average time an employee spends with their company is at an all-time low.
There's a shift from full-time to part-time, casual, and gig work, reducing long-term professional relationships.
Studies show workplaces are promoting the fear of job loss to motivate workers.
Job security is deteriorating, which is harmful for both workers and companies.
Andrew layoffs and price increases indicate a trend of job insecurity.
Teachers and staff may face job losses, reflecting a broader issue.
The average tenure of young employees is less than a third of that of Baby Boomers.
In the past, job loss was a rare and significant event, now it's becoming the norm.
Companies have given up on training their own staff due to high turnover.
On-the-job training has drastically reduced over the years.
Standardized systems have made it easier for companies to hire pre-trained employees.
Platform-based gig work exemplifies the trend of short-term professional relationships.
Professionals are now expected to self-train to stay competitive.
It takes an average of 12 months for an employee to reach full performance potential.
New employees are not fully autonomous in their roles for the first 18 months.
Productivity is at an all-time high despite lower job security.
Manufactured job uncertainty is used as a motivation tool by companies.
Japanese companies have a different approach to job security, preferring 'workers purgatory' over firing.
Younger employees are not motivated by job security and are more open to changing jobs.
Companies find it easier to hire externally rather than promoting internally.
Job security is no longer a selling point for taking a job.
Consulting, legal, and accounting firms rely on short-term employees for their workforce.
Corporate America has inadvertently played itself by undermining job security.
Transcripts
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
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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
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