In a changing economy, it is important to be confident that your job is secure before you make long-term investments. The future is not certain and if you lose your job you will require liquidity or you could end up in financial ruin. The key is to have at least 6 months of living expenses socked away in liquid assets before you invest in less liquid things like real estate, timber or privately held businesses. Although stocks are more liquid in a sudden downturn like we experienced in 2008 liquidity can be severely impaired (if there are no buyers) or you may be forced to liquidate at a significant loss. Warren Buffet is famous for maintaining massive amounts of cash waiting for just such an opportunity when he can name his price and everyone else is so strapped for cash that they have to accept his offer.
In addition to liquid savings the next key to being in a position to invest is having job security. But in today’s world job security is hard to come by. Long gone are the days when you started to work for a company at the age of 18 and planned to retire from the same company at 65. In many cases these days, the company itself will have changed names or merged or split a half-dozen times during that time-frame. And each one of those events often results in lay-offs.
People mistakenly believe that if you work for a large company with good employee benefits, chances are that the company plans on having you around for a while. But many people with good benefit packages found themselves out on the street in 2008.
Another mistaken belief many people have is the importance of the company’s reputation. How long have they been in business? But just because a company has been around for fifty years, doesn’t mean that they won’t have a massive lay-off. G.E. is a good example, it is one of the largest companies in the world but it often has massive layoffs. As a matter of fact, it routinely lays off the “bottom 10%” of its workforce. Many good companies consider this a good way to get rid of the “deadwood.” You may be a nice guy but if your performance is in the bottom 10% you are probably “coasting” and the other 90% of the employees are probably carrying you anyway and they often spend much of their “free-time” wasting other people’s time. So by eliminating these non-productive employees not only are payroll costs slashed but overall productivity is actually enhanced.
So How do you Ensure that You are Not one of those Whose Job is Axed?
The easiest way is just to be sure that you are not in the bottom 10%. Even better, why not strive to be in the top 50%? How about striving to be in the top 10%?
How do you make it to the top 10%?
- Don’t just do enough to get by- Strive to do a good job. Do more than the minimum required.
- Constantly Learn More- Always strive to expand your skills and make yourself more valuable to your employer.
- Be an Asset not a Liability- When it comes to finances there are only two columns- Assets and Liabilities. Most employees consider themselves assets to the company but that is not how management sees them. Payroll is a liability and when it comes time to cut expenses payroll is often on the chopping block. But there are certain sectors of payroll that are off-limits. One is high producing salespeople. If you are bringing in the clients you are a productive asset producing more than you cost and you will have job security. The key is to look for ways to provide value to the company, whether it is money-saving ideas or ways to generate more revenue if you are seen as an asset you will be kept around.
- Provide valuable service- One way you can ensure that you are at the top of the heap is if you do jobs your boss hates to do. Find out what your bosses’ least favorite job is and volunteer to do help with it. Learn it inside out and before long your boss will gladly hand it over to you. Once you are doing it, he will be extremely reluctant to get rid of you because he will have to start doing that job again!
- Have a great attitude- If an employer has to choose between two equally qualified employees but one has a bad attitude and the other is always cheerful who do you think he would prefer to keep around?
- Don’t be “Needy”- No one likes to have a needy employee. Don’t take up a lot of your bosses time asking questions, whining, and only doing what you are told to the exact letter. Take some initiative, learn your job well, do more than is asked, and figure it out for yourself. Ask co-workers, before your boss, if possible and only ask your boss if absolutely necessary.
- Be a Problem Solver- Find creative ways to solve your boss’s problems. Ask him what his biggest problems are and find ways to solve them. He will love you for it because it makes him look good and eliminates his headaches. This will often allow you to ride his coat-tails to a better job as well.
- Get the Job Done- Many people get the job 95% done and consider it good enough. This ends up leaving a few loose ends that cause “open loops” these open loops cause stress because our mind is wired to crave “closure”. Finish the project 100% seal it and have a completion ceremony or party. This will close those open loops, freeing up your mind and your bosses’ mind, making everyone feel better. Often the last 5% is just “paperwork”, documentation, etc. get it done and you will be seen as a hero.
- Go Above and Beyond the Call of Duty- The best way to get a promotion is to already be doing the job you want to have. If you take on the extra responsibilities, are always seen as doing more than the minimum and you are solving your bosses problems… in good economic times you will get the promotion and in bad times you will be the last one to be fired.
See Also:
- How to Successfully Climb the Corporate Ladder
- Ray Understood Success
- How to be Motivated at Work
- The Top 4 Most Successful European Airlines
- Buy a Business Franchise or Start Your Own?
Recommended by Amazon:
- The New Job Security, Revised: The 5 Best Strategies for Taking Control of Your Career
- Forget Job Security: Build Your Marketability!: Finding Job Success in the New Era Of Career Management
- The Success Principles(TM): How to Get from Where You Are to Where You Want to Be
- The Pledge: Your Master Plan for an Abundant Life
- Automatic Wealth: The Six Steps to Financial Independence
Image courtesy of pat138241 / FreeDigitalPhotos.net
