Job security has never been a sure thing. But lately, more and more people are insecure about keeping their employment status.
This year has been especially hard, with some companies issuing pay cuts, reducing hours or even letting staff go. As a result, the idea of job security has become even more uncertain.
For employers, this can present a challenge in terms of keeping morale high and attracting new talent. So what can companies do to help their employees feel more secure in their jobs? Read on for some tips.
Overview of The Job Security Crisis
Job security is a big concern in today's ever-evolving economy. Millions of people worldwide worry about their financial stability, and for good reason.
The job market has been volatile amid recent turbulent economic conditions. Sometimes, whole businesses have to close or change the way they work because of unexpected changes.
One ADP survey found that only 20% of employees felt secure in their jobs, which is telling of the size of this issue.
A direct result of this instability has been an increased demand for secure positions that guarantee a steady income. Unfortunately, most of these jobs require specialized skills and higher qualifications. Skills many applicants cannot meet.
As such, finding secure employment has become increasingly tricky as skilled labor becomes a precious resource among employers.
The job security crisis affects us all—whether we're searching for a new role or maintaining our current one. It will continue to do so unless significant reform takes place in how companies source and employ workers.
Is It Normal to Worry About Job Security?
It's 100% normal to worry about job security, especially with the covid-19 pandemic and talk of a recession. It's a tough time for everyone, and it takes effort to stay positive and not fear the worst.
Although it's normal to worry about the future, try to focus on how you can be your best in your current role. After all, being proactive is one of the best ways to prepare for anything that comes your way in life!
Causes of the Job Security Crisis
Higher job insecurity is a reality faced by many workers these days, which can be pretty distressing. Fortunately, an understanding of its causes can help inform solutions for improvement.
The world has changed a lot in the past few years. Globalization has led to increased competition in all areas, including the job market. As companies develop cheaper ways to produce goods and provide services, job security starts feeling very shaky.
One of the most well-known causes of job insecurity is the rise of automation in industries across the globe. Automation often replaces human jobs, leading to greater unemployment and underemployment worldwide.
Safeguarding Jobs & Wages
Additionally, the waning power of labor unions has taken away a major source of employee protection. Companies have more control over how many workers they keep and what they get paid. As a result, many individuals must endure fierce competition with limited rights.
Impact of The Job Security Crisis
Impact on Employees
Employee job insecurity has affected millions worldwide and is still ongoing. Job losses are a critical factor in stress levels skyrocketing, creating feelings of hopelessness and uncertainty.
Impact on Employers
The job security crisis has had a significant effect on employers. Many companies have had to lay off or furlough employees due to the economic downturn caused by the pandemic.
This has led to financial difficulties for these companies, as they may have less revenue and a smaller workforce to generate income. Some employers may also have trouble finding new workers.
Additionally, it can be hard to maintain employee morale and motivation.
Employers may also face increased pressure to provide benefits such as health insurance and paid time off to keep their workers.
Impact on The Economy
The economic downturn caused by job loss has many negative consequences on families and society as a whole…
- When people lose their jobs, they usually spend less money due to financial stress. This can cause the economy to slow down and grow less.
- The government has to spend more money on programs to help them, e.g., unemployment insurance.
- Businesses may also spend less money and not invest as much when the economy is not doing well.
- The unemployment rate increases, making people lose faith in the economy.
- The country's overall production goes down. This can lead to more people living in poverty and the government having to borrow more money.
Most Affected Communities and Industries
Communities and industries most affected by the job crisis include those in...
- Hospitality and tourism
- Retail and service industries
The COVID-19 pandemic has significantly impacted these sectors, leading to widespread closures and job losses.
Additionally, small businesses and self-employed individuals have been disproportionately affected by the crisis.
Strategies Employers Can Use to Help Mitigate Job Insecurity
These challenging times can be overwhelming for employers. Luckily, there are simple strategies to help mitigate these circumstances and benefit their workforce.
Education and Training
An employer's first step should be to invest time in training and professional development programs.
Research shows that technical skills development and well-being initiatives boost job satisfaction, employee engagement and productivity. It lets your employees know you're invested in them.
The likes of webinars, e-learning and virtual study groups make learning possible while working from home.
Opportunities for Cross-Training
Cross-training is another excellent option. Employees who expand their skill set are more valuable to the company and less likely to lose their job. It also gives them the ability to handle different tasks and changes, which is vital in today's fast-changing job market.
Flexible Working Arrangements
Creating nuanced scheduling systems with better flexibility—such as hybrid or remote work arrangements—can give workers more control over their own schedules and increase their concentration.
Create a Positive Work Environment
According to a recent Monster poll:
- 96% of workers are looking for a new job in 2023.
- Nearly half of the respondents consider leaving their current job due to dissatisfaction.
- 67% feel uninspired by day-to-day tasks.
- 53% lack creative problem-solving opportunities.
- Both engagement and professional development are essential.
Building a strong culture with employee recognition is no longer just "nice to have." It's crucial for employee retention and job satisfaction. To retain and attract top talent, employers must foster a culture of appreciation and connection.
Employers should also foster trust and collaboration by encouraging feedback through performance reviews, recognition, and rewards such as bonuses or promotions.
To address employee well-being, employers should set aside funds for mental health initiatives. For example, management courses, yoga classes, creativity or subscriptions for mental health services.
These activities can encourage employees to keep their minds busy while also checking in on their physical and emotional health.
Providing financial security and job security is important for any employer. During a financial crisis, employees don't just worry about their financial situation. They worry about the business they work at, too.
It's crucial that employers offer financial education to their team members, so they can keep going no matter what comes their way.
Solutions to the Job Security Crisis
With the current economic uncertainty, professional life has changed drastically for many people.
The government is doing some things to help, but businesses must also do their part.
Secure employment is a big concern, whether you're an employer or a worker. Employers can ensure their staff feel safe by creating a good work environment, offering opportunities for career growth and learning new skills.
They can also offer workplace training, hiring incentives, and flexible work arrangements. This way, the employer can meet their goals and help their employees' professional lives.
Step one for workers is caring for their physical health and mental health. Being proactive about your health is essential, so you don't need time off, making you more appealing to employers.
Money is another essential part of job security. If you feel you have an insecure job, it's necessary to do some financial planning. This means budgeting your expenses and knowing where your money is going.
It's also essential to keep your portfolio, resume and LinkedIn profile up to date. Stay informed about what's happening in your industry, so you know what's going on in the job market and can be ready for new opportunities.
Job loss is difficult and carries a heavy impact on the economy. Still, with employers and the government working together, it doesn't have to be a hopeless cause.
Employers should focus on employee health and well-being, providing resources that could help lessen the burden of job loss.
Building a positive and supportive work environment, from establishing competitive salaries to promoting diversity and inclusion, will benefit everyone involved, now and in the future. Investing in employees is an investment for a prosperous business.
If you want to create good change for your business, contact Yaymaker today. We can help you build a more positive work environmenduringse tough times.