There used to be an agreement between employees and the companies they worked for. This is an assurance of long-term employment. An employee was supposed to be faithful and active in the organization. The employee would give effort and attention.
In return, the organization would be in charge of the employee’s life. Working in an organization for more than 20 years was the norm. Then, the employee was given a pension after leaving the organization. These long-term options still exist, but they are few and far between.
My millennial friends don’t even know what a pension is. Today, long-term or lifetime occupations are utterly and completely dead. And are never coming back.
As mentioned previously, the average tenure for workers in the United States is 4.6 years. For employees over 65 years old, the average tenure is 10.3 years. For employees between 25 and 34 years old, the average tenure is only 3.2 years!
In my opinion, long-term employment is dead due to the following reasons.
Bonus Read: “Fear Factor of Buying a Franchise: Ways To Ignore”
3 Major Factors Why Long-Term Employment Is Dead
1. GLOBALIZATION
Access to opportunities used to be based on physical location. Today, you could be based in Bangalore and work for a company based in Silicon Valley. There are many opportunities and access to companies across the world. This creates more freedom, more choices, and less loyalty to one organization.
2. LARGE COMPANIES DON’T EQUAL GREATER JOB SECURITY ANYMORE
“Downsizing” and “reorgs” have become the norm at larger organizations. As the layoffs grow at large organizations, fewer and fewer people want to work there. Instead, many employees now see stints at Fortune 500 companies as “stepping-stones” to other opportunities.
3. BUSINESS IS NOW CHANGING AT WARP SPEED
The marketplace is changing faster than ever. Amazon has only existed for 20 years, and look at how much it has disrupted traditional retailers. Market instability affects all organizations, including large organizations.
The long-term stability of the past is not coming back. People are leaving one firm to start at a new firm. New companies emerge, companies go under, and this situation repeats itself over and over again.
Have you also thought that long-term employment is dead? Curious about your thoughts!
Many opportunities exist for those interested in owning their own successful business.
When deciding on the type of business to pursue, it is essential to thoroughly understand all associated operating costs and the total initial investment or start-up costs. And with the help of a franchise consultant, you can find the right franchise to invest in.
After all, is said and done it’s important to remember that this choice can either make or break your career as an entrepreneur or lead you down a path of success.
Bonus Read: “Business Opportunity or Franchise – Which is Best?”