Underemployment is "New Normal" - Here's How to Beat It linkedin.com (557 hits)
If you spend as much time as I do studying employment trends, then you know there's a new employment crisis brewing. The number of people who are "underemployed" is rising. The basic definition of underemployment is anyone working fewer than 40 hours/week and/or in a job beneath their skill level. (Check out this article on how the recent increase in jobs was primarily for part-time work - creating a decrease in unemployment, but an increase in underemployment.
This is the new normal. Companies aren't feeling confident in their abilities to generate sales. As a result, they're playing it safe and hiring part-time and contract workers instead of full-time employees. I was in the staffing industry for many years. I remember an executive predicting in a meeting that eventually 50%+ of the workforce would be contract workers working multiple assignments. I believe that will be the case in the next 15-20 years.
Underemployment is here to stay - take steps now to beat it.
Full-time employment as we know it is slowly but surely disintegrating. Yet, professionals are not picking up on this reality and continue to approach their careers as if long-term, full-time employment at their highest skill level should be the only goal. This is going to prove a costly mistake for millions of professionals. It already has for some. The longer a person sticks with this outdated career goal, the more ellusive it will become.
Here's an example of underemployment today...
Jim is a 34 year old professional with a Bachelor's degree. His goal is to find a good job with benefits where he only has to work 40 hours/week. Once he finds that job, Jim is afraid to lose it. He becomes focused on doing what he thinks he can to ensure he doesn't get fired. Jim doesn't take risks. He doesn't speak up when he sees problems. He also struggles with some of the business decisions he sees the management team making, but looks the other way. Jim chooses to quietly deal with the confinement of the job and reminds himself daily he has security - a/k/a a pair of golden handcuffs. Unfortunately, Jim doesn't account for the pace at which businesses are changing in his industry. It's increasing to the point companies can't offer long-term employment anymore. So, over the course of 10 years, while Jim keeps his head down on the job and does what he can to not 'rock the boat,' he slowly becomes obsolete. His role changes some, and he gets tiny annual pay increases, but eventually, his department is no longer considered an asset to the firm. Jim gets laid off.
Suddenly, Jim is 44, out of work, and has no idea how to find a new job, let alone know what he wants to do next. He is given a 6 month severance package and quickly burns through it. He goes on unemployement, but watches his savings dwindle. Currently, the average length of job search in America is 9+ months. But, because Jim hasn't been keeping his skills current or networking while he was employed, Jim's search takes 2 years. With 80% of all jobs being gotten via referral, Jim has to slowly build his network in order to get a shot at any jobs at all. And, to make matters worse, because he is out of work, Jim is being discriminated against - making it harder to get considered for jobs. Jim loses all of his fnancial security and eventually ends up taking a job at half the pay he used to make doing a job two levels down from what he did before. Jim is underemployed and financially starting over.
Now, let's see what can happen when someone throws away the idea of long-term, full-time employment as the ideal career goal...
Lisa is also 34 with a Bachelors degree. However, Lisa is tired of working "for" employers. Now, she isn't ready to start her own company, but she does want to find a way to feel in control of her career. So, she decides to build a more flexible career gameplan. Lisa identifies she wants to solve a particular type of problem within her industry and focuses on becoming a subject-matter expert in her field. She researches potential employers where she can gain some valuable experience to help her become more knowledgeable. The pay is lower than what she could be making, but Lisa doesn't plan to be at this company forever. Perhaps it will work out and she'll be able to grow at this firm over several years, but she's not holding her breath. Instead, she sets a 2-year goal for herself. In that time, she learns as much as she can at the job, but also invests in some online courses to help her supplement her learning. And, she volunteers to do a project pro bono for a colleague over at a start-up as a way to get additional experience.
..."If you want to be more like Lisa, then you need to take action. Here's what to do:
1) Identify what you want to be a subject-matter expert on within your industry. Yes, you will be capable of doing many different things, but specialists shine in a sea of generalists.
2) Pursue opportunities to build your skills and abilities in this area. Even if you have to pay for the training yourself or volunteer outside your normal working hours, do what it takes to stand out in your field.
3) Get clear on what you want to accomplish within 2 years. Then, check in with yourself monthly to make sure you are moving in the right direction."...
Tuesday, August 13th 2013 at 3:37PM
Jen Fad
