Recent layoffs in tech caused many people to NOT trust their employers anymore.
That's expected. If employment contracts get terminated when company's policy changes, then the job isn't that secure.
- Recent layoffs in the tech industry highlights the fragility of job security as employment contracts can be terminated due to policy changes.
- The best job security lies in continuously learning and developing skills that are in demand in the market.
- Relying solely on employment contracts for job security is a fallacy, as companies may default or go through legal loopholes.
This Is Your Best Type of Job Security
You know what's the best job security? Learning skills with market demand!
Let us explain.
The Cycle of Layoffs and Euphoria
Layoffs are terrible, and there's been a bandwagon effect in the market. Big tech does layoffs, smaller companies do layoffs right after.
But that's how the market works. Two years ago, tech companies were over-hiring and salaries going through the roof.
These market cycles are normal. Euphoria will come again. Then layoffs and defaults. And again and again.
The Fallacy of Relying on Employment Contracts
Now, what about job security in such conditions?
If your only source of job security is your current employment contract, you're at a big risk of disappointment.
While many companies default and layoff people, other companies get founded and hire new people to support their growth.
Your best job security is being an attractive hiring target for these new companies. And you do that by nurturing the in-demand skills those companies hire for.
The Case of European Labor Laws
Living in Europe, I know many people who hold dearly to employment contracts at struggling companies. Because EU labor laws prevent companies from firing, among other protections.
I keep telling them, they are just an employer bankruptcy or legal loophole away from a big life crisis.
Most of these people haven't developed new skills for years, as they feel their current contract grants them employment for life.
Now, most of these people are in their 30s, meaning they require their current employer to still exist in 30-40 years from now. Unlikely for many!
Having a good employment contract with social protection is great and we should all go for that when we have such opportunity.
But in a fast changing world, that's not as much of a security as in the past.
The Importance of Skill Development
Relying solely on the security provided by employment contracts is no longer sufficient. Learning new skills that matter is THE security people should aim for.
Continuously adapting and staying ahead of industry trends means you can position yourself as a valuable asset for both existing and emerging companies. Investing time and effort into skill development not only enhances job security but also opens doors to new and exciting career prospects.
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