Scarce Vocational Perks Former Generations Banked On

Oh, how to revive the job perks that former generations took for granted — promotions, growing wages, benefits, pensions, mutual loyalty between employers and employees!

In days gone by, there were a number of perks that a loyal employee took for granted.  It was common for people to finish school and begin a career at a company or firm where they would work for twenty to forty years and then enjoy a fitting retirement.In days gone by, there were a number of perks that a loyal employee took for granted Click To Tweet

Then one day that all changed.  In fact, many things changed simultaneously during the first decade of the 21st Century.  It seems the whole world changed.

One of the most significant changes came with the attacks on 9/11.  The attacks didn’t really change everything, but rather marked the occasion of the change.

Promotions

Working for the next big promotion was the motivation that kept many employees doing good work. Promotions were the milestones of a career.

All of a sudden, contract positions, automation and exporting jobs overseas replaced promotions.

Growing Wages

Corporations no longer reward longevity with pay increases.

At a previous job, I heard the director of HR ask if we did not want to see current employees resign so that we could hire replacements at a lower wage.  That question really bothered me.  I had no problem letting people go if they were not contributing as much as they should.  But I never wanted to see anyone go if they were a true value to the organization just for the sake of profits.

In my opinion, companies should incentivize employees making significant contributions to stay on. Contributing in bigger ways as their time with the company grows should be rewarded with bigger perks.Companies should incentivize employees making significant contributions to stay on Click To Tweet

The movement to increase minimum wage is taking away more opportunities to see a pay raise.  Read more on the topic of earning a better wage at 5 Better Solutions Than A More Competitive Minimum Wage.

Perks – Benefit Packages

Companies used to take care of employees.  Quality benefit packages gave employees a big incentive to stay loyal to their company.  There was a sense of loyalty that went both ways.

Perks are incentive to stay loyal to the company

Perks are incentive to stay loyal to the company

Taking care of employees is an area that has to rebound.  Cutting costs is one thing, but failing to take care of the people that make up your business is cutting your own throat.

A new movement to take employee’s family situation has started gaining ground.  More parental leave for new parents and on-site child care are two examples of rising interest in families welfare.

There was a trend of employers embracing telecommuting over the past decade, but it looks like that benefit is dying off as well.

Pensions – Perks for Life

Mutual loyalty between employers and employees lasted for decades in the old days.  Companies set aside a portion of their profits to invest in a retirement fund for the employees to enjoy beyond their working years.

The modern equivalent to a pension is the 401k.  The 401k package can have a lot of benefit to the employee in that you can take it with you when you go.

The trend of moving from job to job every few years rather than being a ‘company man’ with one employer for your whole career brought about this change.

If your employer offers a 401k matching program, I highly recommend that you participate.  That is free money that goes straight to your net worth rather than to consumption.If your employer offers a 401k matching program, I highly recommend that you participate. That is… Click To Tweet

A Better Way

If you are determined to work for someone else until retirement, what benefits would you look for from your employer?

Finding solutions within yourself rather than counting on an employer or the government to provide these things for you will empower you to grow your net worth to a level you never thought possible.

You cannot grow a significant net worth while depending on the government to provide for basic needs. You can read more about this in my earlier post, Who is Responsible for providing Basic Needs of Americans?

If you are an entrepreneur, you could build a business on the old model.  Or could you?  Is the old way dead and gone or can it be revived?

What would it take to create a business model where employees could count on perks for loyal commitment to your company?  Is sustainable growth something that could be offered as a benefit to loyal employees anymore?

What would it take to create a business model where employees could count on perks for loyal commitment to your company?  Is sustainable growth something that could be offered as a benefit to loyal employees anymore?

Whether you work for yourself or work for another, developing multiple streams of income is the best way to combat declining job perks.

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