A Secure Job - The Hidden Obstacle To Wealth Building

Almost every employee targets their dream job. The definition of dream job will differ from person to person, but to most people, it is characterized by a safe secure job with plenty of fringe benefits, a hefty retirement package, and a remote possibility of being fired. Working for the government has long been associated with such characteristics.

What is it that would attract a prospective employee to such a job? The answer is a steady paycheck at the same time every month for the foreseeable future. This makes most employees believe that they will be able to meet all their financial requirements over their working lives uninterrupted, if they can secure such a job, which leads to the elusive search for job security.

Retirement is a scary subject to most people, and the one thing that gives most employees in so-called secure jobs a false sense of comfort is a steady paycheck that continues after retirement as a reward for decades of service. The employee therefore does not see any reason to start building sustainable wealth right away.

The average life expectancy is steadily increasing, thus making it difficult for companies to incur expenses on individuals who are not currently involved in increasing the current earnings of their former employers. Let us take an example.

James retired from what was known as a safe secure job in the automobile industry at the age of 65. He is now 71 and is still paying a mortgage for his luxury home. Although his former employer has been paying him a steady retirement paycheck for the last 6 years, he has something to worry about.

In recent times, the company has not been making any profit, and as a result has had to lay off some workers. This has led to a situation where there are more retirees on the payroll than employees who are actively involved in the day-to-day operations of the company.

This situation is putting a strain on the company and honoring the obligation of looking after retirees like James long after they have left active employment is becoming difficult. James may not be able to keep up with his mortgage payments if his former employer goes bust.

One of the major causes of mass job loss even in a thriving economy is mergers and acquisitions (M&A). This is where two companies combine their operations or one company is bought by another and the purchasing company decides that it is only interested in a small fraction of the staff of the acquired company.

As an employee, you have very little control over (M&A). In most cases the more senior you are, the higher your chances of being made redundant. Think about it. When two companies merge, you do not expect two Chief Executive Officers, two Chief Operating Officers or two Financial Controllers.

Job losses therefore become inevitable. Furthermore, given the differences in organizational cultures, those who cannot handle the change management process are very likely to be retrenched. Most people at this point learn the hard way, that financial security is their responsibility, and not that of their employer.

Take control of your financial future and avoid the trappings and illusions created by what people believe to be a safe secure job. Do not wait to get to the other side of the rainbow to realize that there is no pot of gold.

It is said that life presents us with two doors, one called security, and another called freedom. The moment you choose security, you have lost both freedom and security.