There have been quite a few layoffs in 2009, as it’s been quite a tough economic year. Just about everyone is looking over their shoulders now, trying to ensure that they’re not next in line to go up on the chopping block. So how do you avoid getting laid off in this down market? The economy is tough, and whether you’re a large corporation like GM, or a small company like a start-up, you have to abide by the first and most important rule of capitalism: making a profit.
What this means to you is that - whether you’re the employee, manager, or somewhere in the middle of the corporate ladder - you have to make absolutely sure that you’re pulling your own weight at the company. Goldman Sachs, Merrill Lynch, etc. have all proven that there were employees out there with bloated, ridiculous incomes, but those employees were laid off for good reason. So where do you fall in that spectrum? Are you overpaid, or are you working your butt off to earn every penny of your salary?
One way to keep your money safe
A good way to find the answer to that question is to take a close look at other salaries in your profession. Take a look at your company’s competitors and what kind of salaries the people there are making. Take a look at the responsibilities of comparable job positions. Are you making a competitive salary - and I don’t mean in terms of if you’re making more, but - are your responsibilities equal to your “salary cost” to the company as an employee?
One reason that the economy is tanking right now is because there were employees out there who took liberties with what “wealth creation” actually meant and were rewarded for it. But capitalism shouldn’t - and thankfully doesn’t - work like that on a long term basis. In a truly competitive market, we eventually have to produce something worthwhile for a company and be paid fairly for that work. If you think your salary is competitive, both in terms of compensation for yourself and for your company, then you have to keep it up, stay positive and keep showing your worth as an employee that can’t be cut. If not, you might want to think about taking on new responsibilities to ensure that you remain a competitive employee that is earning a competitive salary, to ensure that you don’t get laid off.
