THRIVE, DON’T JUST SURVIVE

INCOME PROTECTION STRATEGIES IN TIMES OF JOB MARKET TURBULENCE

There are many valid reasons why anyone might be concerned about keeping their job, especially if the economy gets weaker and companies want to reduce staffing costs.

We’ll start by discussing reasons why your concerns are valid. Then, we’ll review alternative strategies for you to follow to protect your income. Finally, I’ll show you a way to get mentoring help to select a strategy and to implement it.

TECHNOLOGY IS THE PRIMARY CAUSE OF JOB LOSS

If you’re not concerned that your job may be lost because of technology, you ought to be!

That is not to suggest that all jobs are in imminent danger of being automated. They are not. Nor is the existence of every organization threatened by new technology. Only some are.

It’s wise for every employee to maintain awareness of the current state of all technologies that might impact their job or their organization.

Our discussion centers on the impact of technology. But technology is not the only valid reason why you should be concerned about the continued existence of your job. There are other reasons relating to government policy, the industry in which you work, and the financial strength of your employer.

My main message is that, in today’s world, it is insufficient to just do the best you can in the job you have – even if you are continuously upgrading your skills. In these turbulent job market times, you need to keep aware of everything that might affect your job. No-one knows for sure what will happen in the future, but we can prepare for the most likely outcomes.

THE 5 WAYS TECHNOLOGY CAUSES STAFF REDUCTIONS

Technology rarely automates entire jobs. It automates tasks – and a job consists of a number of tasks. Nevertheless, there are 5 ways in which technology causes staff reductions. We use the acronym PRAMS. (A baby carriage is called a pram in the UK, and I started life in a pram!)

P – Increased PRODUCTIVITY means less people needed to do the same job. (ChatGPT – or generative AI – allows much faster marketing content creation.)

R – New technology REPLACING the need to staff a significant function/department. (Customer service departments can be replaced by automated responders, except for a few staff for special cases.)

A – New system AUTOMATING manual work, eliminating manual tasks. (An on-line business expense entry system eliminates all the manual expense claim processing.)

M – Fewer people reduce the need for MANAGEMENT. (Two smaller teams may only need one supervisor or manager.)

S – Fewer people require fewer staff SUPPORT workers. (Fewer staff means less work for Human Resource Departments’ recruiting efforts.)

TECHNOLOGICAL CHANGE IS CONTINUOUS AND GETTING FASTER

Let’s examine the exponential nature of technological change.

Technological changes have been accelerating for the past sixty years. In 1965 when there were only 64 transistors on a chip, Gordon Moore, the co-founder of Intel, suggested that the number of transistors would double every two years, while the cost of computing would halve (Moore’s Law). Now there are over 2 trillion transistors on a microchip!

In addition to these physical changes, improvements in communications have allowed discoveries to be shared almost simultaneously with researchers around the world. This is a major contributing factor to the increasing speed of innovation.

We all have difficulty appreciating exponential change. Our brains seem to expect change to be linear. There were substantial changes in 2023 and 2024 – not just in generative AI and Large Language Models, but also in areas such as biotechnology, drones, and 3D manufacturing. With accelerating innovation, we can expect even greater changes in 2025!

ORGANIZATIONS MUST PIVOT WITH TECHNOLOGICAL CHANGE – OR DIE

Remember Kodak! Founded in 1892, Kodak dominated the world of cameras and photographic film during the 20th century. It invented the first digital camera but let other companies market digital photography. Kodak filed for bankruptcy in 2012.

There are many other examples of companies that didn’t have the flexibility to pivot when a new technology challenged the need for their products or services. How about your employer?

This issue is particularly true today as the introduction of new technologies and new companies using these technologies accelerates.

FIVE INCOME PROTECTION STRATEGIES

You’ve decided that your job may not be around for much longer – at least for you.

You’re concerned that technology may be automating it. And you’re right. The only question is when.

Or the skills required for your job are changing, and you’re finding it hard to keep up.

Or maybe you’re no longer fitting in with the organization the way you used to.

Or perhaps you just want a change.

But you need the income from your job. So what are your options?

There are 5 strategic options to consider, each with personal pros and cons:

1. Make yourself an indispensable employee. (That’s if you’re concerned that your employer may be letting you go, and you want to stay – at least for the time being.)

2. Change jobs. (That’s if your job is not being phased out by technology.)

3. Change careers. (This may be a great opportunity to assess what sort of work you really want to do.)

4. Start a business or side hustle. (This may be your chance to achieve financial independence.)

5. Do nothing. (That’s if there are health or family issues that consume your time, or you’re close to retirement – but not, hopefully, because you’re not motivated to change.😊)