Every job is a time bomb
Every career is a business. You do something of value, you get paid for it.
However, for some mysterious reason, most workers do not know how their "business" functions. They can't precisely define the "value" that they produce, yet the Chief Financial Officer of every corporation knows precisely what marginal value every single worker is providing.
For example, suppose I'm an account manager. Because of me, my employer generates revenues of $300,000 from a few corporate accounts which I manage. Suppose the cost of supporting a worker like me (workstation, HR administration, training, office supplies, etc.) is $50,000. Then, the marginal value I contribute is $250,000. If the company pays me $60,000, then it makes money from me.
If I bring in $400,000 the following year, then I have some leverage during salary negotiations.
(Of course, it would be better if I get from my boss a written agreement to increase my salary once I bring in $100,000 more in the following year, instead of waiting to negotiate AFTER the fact).
The marginal value you provide to your employer is simply the additional value that you bring to the company, over and above the total value contributed by all other workers.
(When you think about it, networking is the same. What special talent or resource or connection do you bring to a new person you just met? Humans are rational beings, they calculate all the time. For this reason, it is better to carefully think about what's special about you, BEFORE you go out and network. In other words, why would someone consider you as a useful or valuable addition to their current personal / professional network?).
Robert Shiller described this marginal value quite well in his book The New Financial Order. The book is very technical and difficult to understand unless you have a finance background or financial education. However, the part where he talks about marginal value is definitely worth reading.
Back to my main idea: your career IS a business.
If so, then what is your product or service? Who is your main customer? Why can't you have more customers? How do you ensure continuous improvement of your processes and products? How do you sell your service?
Because most people don't really consider their career as a business, they tend to rely exclusive on ONE client (their employer) without making any effort to meet other potential employers.
Then, one day, the pink slip comes and everybody starts to panic. Studies in fact have shown that the people who remain employed experience greater stress and trauma than the people who are let go!
The success secret is to realize that every job is a time bomb: sooner or later, a sophisticated method of work, an expert system, a younger person, an Indian worker, etc. WILL replace you.
Are you ready for it?
The best way to prepare for it is to start treating your career like a business, starting from today.
However, for some mysterious reason, most workers do not know how their "business" functions. They can't precisely define the "value" that they produce, yet the Chief Financial Officer of every corporation knows precisely what marginal value every single worker is providing.
For example, suppose I'm an account manager. Because of me, my employer generates revenues of $300,000 from a few corporate accounts which I manage. Suppose the cost of supporting a worker like me (workstation, HR administration, training, office supplies, etc.) is $50,000. Then, the marginal value I contribute is $250,000. If the company pays me $60,000, then it makes money from me.
If I bring in $400,000 the following year, then I have some leverage during salary negotiations.
(Of course, it would be better if I get from my boss a written agreement to increase my salary once I bring in $100,000 more in the following year, instead of waiting to negotiate AFTER the fact).
The marginal value you provide to your employer is simply the additional value that you bring to the company, over and above the total value contributed by all other workers.
(When you think about it, networking is the same. What special talent or resource or connection do you bring to a new person you just met? Humans are rational beings, they calculate all the time. For this reason, it is better to carefully think about what's special about you, BEFORE you go out and network. In other words, why would someone consider you as a useful or valuable addition to their current personal / professional network?).
Robert Shiller described this marginal value quite well in his book The New Financial Order. The book is very technical and difficult to understand unless you have a finance background or financial education. However, the part where he talks about marginal value is definitely worth reading.
Back to my main idea: your career IS a business.
If so, then what is your product or service? Who is your main customer? Why can't you have more customers? How do you ensure continuous improvement of your processes and products? How do you sell your service?
Because most people don't really consider their career as a business, they tend to rely exclusive on ONE client (their employer) without making any effort to meet other potential employers.
Then, one day, the pink slip comes and everybody starts to panic. Studies in fact have shown that the people who remain employed experience greater stress and trauma than the people who are let go!
The success secret is to realize that every job is a time bomb: sooner or later, a sophisticated method of work, an expert system, a younger person, an Indian worker, etc. WILL replace you.
Are you ready for it?
The best way to prepare for it is to start treating your career like a business, starting from today.
posted by Super Peter at 7:14 PM
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