It's a Recession! How to survive....
Posted 2nd-January-2009 at 08:33 PM by Windguy
It's a Recession!Yes, a recession is upon us, and it has the ability to form into a depression. Only two out of the top twenty nations will be showing some growth for this year (Australia and Canada). For that reason we have to change our thought processes for what we consider our jobs or careers. We also have to reconsider our spending habits to ensure multiple effects upon our economy.
Before this recession when we had a job we can go searching for greener pastures whenever we wanted to. We could change our job, or we could slack off until we get sacked then walk straight into another one. Many times I've seen people fired then rehired again just due to the sheer desperation to maintaining enough workers for the demand. Obviously that will change, and probably has already changed. But even when you feel safe and secure in your job the recession can get you, so everyone needs to be on their toes. If you do lose your job, all hope is not lost, only if you are willing to accept a downsize in wages and gain course certificates in high demand industries.
Basic rules of staying employed in a recession:
1. Change your work ethics - It's not good enough to be joe average in the work place. Whilst the going was good, you could afford to be that Joe Average and do as little as possible just to ensure you don't get the sack. i.e. Rock up 2 minutes before you start work. Excessive breaks. Low production. Involving yourself in gossip, or even starting it. Those were the days, but it isn't so now. Beat the Joe Averages by rocking up 15 minutes early be willing to work harder especially when it is necessary and become more friendly to all of your fellow employees. Obviously the rule in most unionised workforces is last on, first off, but since most workplaces are not unionised now, anybody may be chosen and the bossman wants the best workforce possible. Even if your workplace is unionised, do you see your boss getting petty on one of the workers? Is he priming him to leave so he doesn't have to pay for a redundancy? There is always ways around any rules and it's better to not rely upon them for your job safety.
2. Don't jump ship just yet - So you found another job, it's poopooing all over your normal wage and seems like better conditions too. You would be better off double thinking that move. Even though most workforces aren't unionised these days they try to do what's right by their workers. Yes, you may help the economy by going to the higher skilled jobs, but the economy will not help you if the downsize occurs. Besides that all newcomers are scrutinised, but the "he'll do" after 3 months might become "we can find better" as the climbing unemployment rate gives a greater pool of employment resources for the taking. Sometimes hard work cannot beat attributes such as charisma, intelligence, being the bosses son who has just been laid off from another job.
3. Retrain for high demand positions while you are employed - Certain jobs either stay in high demand or increase in demand for employees during a recession. Sometimes you would have probably not been hired because of your qualifications leading towards either better or other skills, now they know if they hire you that you are not going to jump as easily for your more preferred job. So those high demand jobs should become your fallback for if the inevitable does occur.
How do you know what those jobs are. You see them everywhere when the times were good. Yes they were the jobs when slobs would be hired and they would be just a body for that job. Even though there is skills required for these jobs, they have been strangely lacking giving their whole industry a bad reputation. They would kill for a guy who knows what work ethics are. Your superior qualifications just adds icing to the cake for even three months in those industries could improve the industry overall in the long run. You just have to accept you are an equal to everyone else in your new industry as they will chop down anyone who acts like a tall poppy. So be an equal (if you are forced to make the change) just a slightly harder worker than the rest, since the next person hired may be a professor.
4. Work experience?? - It has become rare for companies to accept work experience since they have to chase employees. When they have been asked for a work experience position, obviously the person is ill equipped for the job leaving a bad experience for both employer and work experience cadet. Well it will become more normal to perform work experience and long-term trials since employers don't have the demand for workers like they use to. I'd give 2 weeks maximum of my time if I am unemployed with a demand for a reference at the end. Write it yourself and just get them to sign it if they don't hire you. That would then add an urgency to hiring you if they want to hire you instead of playing a waiting game. They will also learn free work will not be so easy to maintain and would be better off with a long term paid employee. Then be willing to taking small amounts of shifts at any time covering just sick leave and holidays. Your main competitors will be the other holiday reliefs since the permanents are virtually protected. The number one thing a holiday relief can do to ensure job surety is to accept every single shift called for. So if you have a second casual job. Choose which one is your best job and give it top priority in all availability.
Basic rules for staying afloat during a recession:
Unless you have some kind of work related problem, not too much changes as some products go up in price, some others go back down in price. Sometimes it pays to buy quality since the company would probably be in the leading edge of the technology and if they lose sales besides from the recession to a cheaper competitor (put your hand up if you've bought a cheap Chinese TV set!) the technology research for that field also goes down leading to technological advancements becoming stagnant. What is harmful to you is your exposure to debt, which if your employment goes pear shaped, could ruin everything you've worked for. So here are some quick rules:
1. Buy from franchises - They are usually the most efficient businesses around with a fairly high output per employee. Even better is the fact those employees would more likely to be paid proper (award) money, and therefore franchises if supported can hold up an economy.
2. Stay away from the backyarders - They usually hire unemployed people and throw them cash far below the award for the positions they are doing. That means your tax is paying for a service (since the unemployed are on the dole) that you are paying for as well and the only profiteer is the boss. A cheaper product is not helping the unemployed to gain a proper super paying job. We are also paying extra tax because some backyarder is stealing work from a proper paying business thus not allowing that same unemployed to gain a proper job and helping to contribute their own tax. Obviously it is very tempting to accept a good deal from anyone, but you have to take this one on faith.
3. Minimise bank debt - Start saving for large purchases and have a big deposit, haggle as much as possible and ensure you insure your debt from employment loss if the payments are suppose to go for five years or longer. Get rid of as much debt as possible now just in case it rains (joblessness). Consider Debt Agreements now if your credit card and personal loan debt is too high and you are still paying off your house. Your house loan comes first so organise early for your debt agreements on your smaller bills through a third party agent so no harm can come to your ownership of your house. You may be able to afford your debt now, but consider the question of will you be okay if your wage is cut, or you do become unemployed.
4. Lower Exposure to Debt - Anything on contracts such as cable television, mobile phones, broadband, electricity are massive exposures to debt for you. If you lose your job you want the least amount of items on contract as possible since the contract payouts can run into 100's if not 1000's of dollars. If you need to upgrade your car, consider a smaller car as the petrol costs could become quite inhibitive if you become unemployed.
Good Luck
Windguy
Before this recession when we had a job we can go searching for greener pastures whenever we wanted to. We could change our job, or we could slack off until we get sacked then walk straight into another one. Many times I've seen people fired then rehired again just due to the sheer desperation to maintaining enough workers for the demand. Obviously that will change, and probably has already changed. But even when you feel safe and secure in your job the recession can get you, so everyone needs to be on their toes. If you do lose your job, all hope is not lost, only if you are willing to accept a downsize in wages and gain course certificates in high demand industries.
Basic rules of staying employed in a recession:
1. Change your work ethics - It's not good enough to be joe average in the work place. Whilst the going was good, you could afford to be that Joe Average and do as little as possible just to ensure you don't get the sack. i.e. Rock up 2 minutes before you start work. Excessive breaks. Low production. Involving yourself in gossip, or even starting it. Those were the days, but it isn't so now. Beat the Joe Averages by rocking up 15 minutes early be willing to work harder especially when it is necessary and become more friendly to all of your fellow employees. Obviously the rule in most unionised workforces is last on, first off, but since most workplaces are not unionised now, anybody may be chosen and the bossman wants the best workforce possible. Even if your workplace is unionised, do you see your boss getting petty on one of the workers? Is he priming him to leave so he doesn't have to pay for a redundancy? There is always ways around any rules and it's better to not rely upon them for your job safety.
2. Don't jump ship just yet - So you found another job, it's poopooing all over your normal wage and seems like better conditions too. You would be better off double thinking that move. Even though most workforces aren't unionised these days they try to do what's right by their workers. Yes, you may help the economy by going to the higher skilled jobs, but the economy will not help you if the downsize occurs. Besides that all newcomers are scrutinised, but the "he'll do" after 3 months might become "we can find better" as the climbing unemployment rate gives a greater pool of employment resources for the taking. Sometimes hard work cannot beat attributes such as charisma, intelligence, being the bosses son who has just been laid off from another job.
3. Retrain for high demand positions while you are employed - Certain jobs either stay in high demand or increase in demand for employees during a recession. Sometimes you would have probably not been hired because of your qualifications leading towards either better or other skills, now they know if they hire you that you are not going to jump as easily for your more preferred job. So those high demand jobs should become your fallback for if the inevitable does occur.
How do you know what those jobs are. You see them everywhere when the times were good. Yes they were the jobs when slobs would be hired and they would be just a body for that job. Even though there is skills required for these jobs, they have been strangely lacking giving their whole industry a bad reputation. They would kill for a guy who knows what work ethics are. Your superior qualifications just adds icing to the cake for even three months in those industries could improve the industry overall in the long run. You just have to accept you are an equal to everyone else in your new industry as they will chop down anyone who acts like a tall poppy. So be an equal (if you are forced to make the change) just a slightly harder worker than the rest, since the next person hired may be a professor.
4. Work experience?? - It has become rare for companies to accept work experience since they have to chase employees. When they have been asked for a work experience position, obviously the person is ill equipped for the job leaving a bad experience for both employer and work experience cadet. Well it will become more normal to perform work experience and long-term trials since employers don't have the demand for workers like they use to. I'd give 2 weeks maximum of my time if I am unemployed with a demand for a reference at the end. Write it yourself and just get them to sign it if they don't hire you. That would then add an urgency to hiring you if they want to hire you instead of playing a waiting game. They will also learn free work will not be so easy to maintain and would be better off with a long term paid employee. Then be willing to taking small amounts of shifts at any time covering just sick leave and holidays. Your main competitors will be the other holiday reliefs since the permanents are virtually protected. The number one thing a holiday relief can do to ensure job surety is to accept every single shift called for. So if you have a second casual job. Choose which one is your best job and give it top priority in all availability.
Basic rules for staying afloat during a recession:
Unless you have some kind of work related problem, not too much changes as some products go up in price, some others go back down in price. Sometimes it pays to buy quality since the company would probably be in the leading edge of the technology and if they lose sales besides from the recession to a cheaper competitor (put your hand up if you've bought a cheap Chinese TV set!) the technology research for that field also goes down leading to technological advancements becoming stagnant. What is harmful to you is your exposure to debt, which if your employment goes pear shaped, could ruin everything you've worked for. So here are some quick rules:
1. Buy from franchises - They are usually the most efficient businesses around with a fairly high output per employee. Even better is the fact those employees would more likely to be paid proper (award) money, and therefore franchises if supported can hold up an economy.
2. Stay away from the backyarders - They usually hire unemployed people and throw them cash far below the award for the positions they are doing. That means your tax is paying for a service (since the unemployed are on the dole) that you are paying for as well and the only profiteer is the boss. A cheaper product is not helping the unemployed to gain a proper super paying job. We are also paying extra tax because some backyarder is stealing work from a proper paying business thus not allowing that same unemployed to gain a proper job and helping to contribute their own tax. Obviously it is very tempting to accept a good deal from anyone, but you have to take this one on faith.
3. Minimise bank debt - Start saving for large purchases and have a big deposit, haggle as much as possible and ensure you insure your debt from employment loss if the payments are suppose to go for five years or longer. Get rid of as much debt as possible now just in case it rains (joblessness). Consider Debt Agreements now if your credit card and personal loan debt is too high and you are still paying off your house. Your house loan comes first so organise early for your debt agreements on your smaller bills through a third party agent so no harm can come to your ownership of your house. You may be able to afford your debt now, but consider the question of will you be okay if your wage is cut, or you do become unemployed.
4. Lower Exposure to Debt - Anything on contracts such as cable television, mobile phones, broadband, electricity are massive exposures to debt for you. If you lose your job you want the least amount of items on contract as possible since the contract payouts can run into 100's if not 1000's of dollars. If you need to upgrade your car, consider a smaller car as the petrol costs could become quite inhibitive if you become unemployed.
Good Luck
Windguy
Total Comments 3
Comments
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Since it only allows 10000 words!
5. Shares are not that bad. But before you buy see which companies will be the best to be on when the recovery occurs. How you can do that is to compare dividends and share price ratio before the recession and after the recession. If the dividends are higher during the recession, than people are running unnecessarily scared and those shares are worthwhile to be bought. During a recession, there is one way to improve your balance before a recovery even. Buy shares in the sinful companies such as major pizza parlour franchises that increase trade during a recession. Gambling and poker machines which seem to be the preferred activity for the ever increasing less well off. Pornography has made a decent transition from video and DVD's to the net, so invest in the newcomers. Alcohol, even French Champagne sell more during a recession. Now as climate change is becoming an ever looming threat, there is new companies with pilot projects everywhere, if you spread 10 to 20% of your portfolio to those projects after you've researched them your selves, you may just find yourself becoming filthy rich, you just have to back the right horse. This is especially so as the big investors limit their risks during a recession.
Good Luck
once again
Posted 2nd-January-2009 at 08:34 PM by Windguy
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Good tips there. I enjoy reading the Personal Branding Blog too, it has a lot of good ideas for upping your personal brand and staying in work.
Personal Branding Blog - Dan SchawbelPosted 3rd-January-2009 at 09:01 AM by adi
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I've never read it before, but just reading the first page does hit home some facts quite well. I've added it to my favourites.
I wrote this, because this is my understanding of battening down the hatches during a recession storm. Most people I've spoken to don't have an inkling of what to do as they've never seen it before. Two of my friends have been laid off already, and I saw them as not playing it safe with their careers.
They have gained jobs elsewhere already luckily. Unemployment is still very low, but the advertisements for jobs have gone down massively.Posted 3rd-January-2009 at 08:44 PM by Windguy
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