Job Security and Competitive Pay Now Seen as Attractive Perks

In the new year, it will be important to prioritize job security and find companies that can offer assurances of stability and compensation that keeps up with inflation. To increase your visibility to management, you may want to consider returning to the office up to five days a week.

As we begin 2023, the job market is expected to be challenging, with continued layoffs, hiring freezes, and the possibility of a recession. To stay competitive, job seekers may need to focus on defensive strategies. It is also likely that inflation and high interest rates will continue to affect the cost of living. The economy may worsen before it improves.

How Things Have Changed

In a strong job market, it may have been easier to engage in activities unrelated to work without fear of negative consequences. This is because leadership recognized the difficulty of finding, recruiting, and retaining employees. It was often more convenient for them to overlook such behavior rather than go through the process of replacing a worker who decided to leave.

In recent years, job seekers and employees have been able to take a more proactive approach, such as demanding remote work, stock grants, flexible schedules, and generous perks like free food and laundry services.

Leadership Had To Kowtow To Their Employees

Business leaders had to accede to these demands in order to keep their employees happy and prevent a mass exodus. Management understood that if they did not offer comparable benefits, pay, and stock rewards to their employees, they would be at risk of losing them to other companies. This can create a domino effect, as other firms may feel pressure to match the offerings of their competitors.

If employees do not feel valued and appreciated, they may become disengaged and begin to underperform or quit quietly. This can lead to a decrease in productivity and strained relationships with customers and vendors.

A Smart And Safe Job Strategy

During this time, it may be wise to consider job opportunities with stable, established companies rather than those in "sexy" sectors or fast-growing companies that are perceived as the next big thing. These companies may offer greater job security, assurances of no layoffs, and a clear career path.

Warren Buffett, also known as the Oracle of Omaha and one of the wealthiest Americans, emphasizes the importance of investing in companies with a "moat" - a competitive advantage that sets them apart and gives them pricing power and strong profit margins. A strong balance sheet, profitability, and a unique business model that is difficult to replicate can make a company nearly immune to competition and is increasingly attractive in the current market.

What Could Go Wrong When You Chase The Latest Trend

It can be tempting to feel pressure to join a popular tech company in order to impress others or earn equity awards. However, recent events have shown that these fast-growing, headline-grabbing companies are not always a safe bet. Many of them struggled when the economy and job market weakened, and their stock prices suffered significant losses. For example, Tesla saw a drop of more than 60%, social media platforms declined by around 64.41%, Apple was down 25.49%, and Amazon fell by 51%. Even smaller tech companies like Peloton faced significant stock price declines and layoffs.

Instead of seeking out highly lauded tech firms, consider opportunities with companies that have a strong track record of revenue growth and profits and can offer job security and a clear career path.

How To Protect Yourself

When considering a new job, it is important to thoroughly research the company you are interested in joining. Additionally, if you are currently employed, you should also look into the financial stability of your current firm.

During your job search, reach out to people you know who work at your target companies and politely ask about their experiences working there. This can help you get an accurate understanding of what it is like to work at the organization.

You can also review LinkedIn profiles of employees at the company you are considering to see if there is a trend of people leaving without being replaced.

It is important to ask tough, direct questions during the hiring process. Do not accept vague answers or corporate jargon, as the stakes are too high. In today's job market, it can be difficult to leave a job or find a new one, so it is important to carefully consider your options.

During video interviews or in-person conversations, try to get a sense of the company culture and whether or not employees seem happy and engaged in their work. It is also a good idea to discuss the offer letter with the human resources representative and ask about any guarantees for job security, severance packages, and insurance coverage.