Job Security is Dead... and Nobody Cares

Summary

The 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

00:00

📉 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.

05:04

🎁 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.

10:07

💼 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.

Keywords

💡Job Security

Job security refers to the confidence that an employee has in retaining their job and the associated benefits. In the context of the video, it is portrayed as being in decline, negatively impacting both workers and companies. The script mentions how job security has historically been a significant factor in employee satisfaction and motivation, but recent trends show a shift towards more precarious employment, such as gig work, which offers less security.

💡Gig Work

Gig work is a type of employment that is flexible and short-term, often involving freelance or contract work as opposed to permanent employment. The video discusses how the shift from full-time to gig work has contributed to the decline in job security. Gig workers often have no long-term commitment from their employers, which can lead to instability and a lack of benefits.

💡On-the-Job Training

On-the-Job Training (OJT) is a method of teaching job skills and knowledge to employees while they work. The script highlights a decrease in OJT as companies are less willing to invest in training staff who may leave for other jobs. This reduction in training is part of the broader trend of companies seeking employees who are already proficient in industry-standard systems, reducing the need for company-specific training.

💡Standardized Systems

Standardized systems refer to the common tools and software that are widely used across an industry, such as Microsoft Office or Adobe Suite. The video mentions that these systems have made it easier for employees to switch jobs because they can quickly adapt to new work environments that use the same tools. However, this also means that companies invest less in training their staff, as they can hire people who are already familiar with these systems.

💡Manufactured Job Uncertainty

Manufactured job uncertainty is a strategy used by companies to motivate employees by creating a sense of insecurity about their job status. The video explains that some companies intentionally promote this fear of job loss to keep workers motivated and to control costs. However, this approach can backfire, as it can lead to a lack of loyalty and an increase in job-hopping.

💡Job Tenure

Job tenure is the length of time an employee has been with a company. The script notes that the average job tenure has decreased significantly, especially among younger workers. This decrease is tied to the decline in job security and the rise of gig work, where employees are less likely to stay with one company for an extended period.

💡Performance Ranking

Performance ranking is a system where employees are evaluated and compared against each other based on their job performance. The video discusses how companies use performance ranking to create a sense of competition and job insecurity among employees, which can lead to increased productivity. However, this practice can also contribute to a toxic work environment and high employee turnover.

💡Internal Promotion

Internal promotion is the practice of filling job vacancies by promoting existing employees within the company. The script contrasts this with hiring external candidates, which is often easier for companies but can lead to a lack of job security for current employees. Internal promotions can also be costly for companies, as they may need to promote multiple employees to fill one position.

💡Job Hopping

Job hopping is the act of frequently changing jobs, often for better opportunities or higher pay. The video suggests that job hopping has become more common due to the decline in job security and the ease of finding new jobs with standardized systems. It is also mentioned as a way for younger workers to advance their careers and secure pay increases.

💡Corporate Culture

Corporate culture refers to the values, behaviors, and practices that characterize a company. The video contrasts the corporate culture of Japan, where job security is highly valued, with that of the US and UK, where layoffs are more common. The different approaches to job security and employee treatment highlight the impact of corporate culture on employee retention and job stability.

💡Employee Turnover

Employee turnover is the rate at which employees leave a company and are replaced by new employees. The script discusses how high employee turnover can be costly for companies, as it requires continuous recruitment and training of new staff. The decline in job security and the rise of gig work have contributed to increased turnover rates.

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