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JOB ECONOMICS 101 – Supply and Demand

JOB ECONOMICS 101 – Supply and Demand

“The Law of Supply and Demand is one of the most basic principles of Economics. In simplest terms, the law of supply and demand states that when an item is scarce, but many people want it, the price of that item will rise. Conversely, if there is a larger supply of an item than consumer demand warrants, the price will fall.” (Investopedia Definition)


You may wonder, what this fundamental principle has to do with your job and your career right now and why the topic of economics is the opening line of this blog?

Well, let me morph this definition into a more applicable explanation relating to jobs and employment by changing a few words: “The law of supply and demand is one of the most basic principles in job security measures. In simplest terms, the law of supply and demand states that when a candidate skill is scarce, but many companies want it, the salary of a candidate with that skill will rise. Conversely, if there is a larger supply of candidate skills than organisational demand warrants, the remuneration of candidates with that skill will fall.”


“Fair enough, as a candidate the more in demand my skills set, the higher my salary. This is common knowledge.”

Now, taking this definition to the next level: “The law of supply and demand is one of the most basic principles in job sustainability measures. In simplest terms, the law of supply and demand states that when a candidate skill cannot be automated or replaced by Artificial Intelligence, but many organisations still need it, the demand for a candidate with that skill will continue. Conversely, if the supplied candidate skill can be replaced by automation or Artificial Intelligence and organisational demand for the actual human skill declines, the job opportunities for candidates with that skill will disappear.


Do I have your attention now?


Three Job Outcomes by 2025


We cannot adequately predict the future of job sustainability, but there is a high probability that the job you have now, could fall into one of only three distinct categories by the next decade:


1. Redundant


According to a report published by the World Economic Forum in 2016, the prediction was made that by 2025, over 7.1 million jobs in fifteen major developed and emerging economies will be lost. These economies account for more than 65% of the global workforce which is presented by the following countries: Australia, Brazil, China, France, Germany, India, Italy, Japan, Mexico, South Africa, Turkey, the United Kingdom and the United States, plus the ASEAN and GCC groups.


The most significant losses due to automation and disintermediation are forecasted to originate from the ‘’white collar” office and administrative industries of Healthcare, Financial Services and Energy and Investment sectors. (Oliver Cann, World Economic Forum Report)


2. Transformed


The invasion of the gig economy continuous to disrupt traditional workplace environments, as well as the nature of previously deemed in office positions, where information technology innovation and infrastructure development is increasing remote and virtual employment possibilities exponentially.


The Mckinsey Global Institute Report issued in November 2017, highlighted automation and robotics to be the most significant drivers responsible for changing the nature of work in functionalities such as: machine operation, fast food preparation, mortgage origination, paralegal, accounting and back-office transaction processing. Important to note the demand for these functionalities is not expected to decline, but employees would be expected to perform new and additional tasks in these areas to remain competitive in the marketplace.

Image Source: Emil Akan, Epoch Times Article


3. Important


Big Data analysis was a foreign concept in the industry a mere decade ago. App developers, Social media managers, Uber drivers and Drone operators did not even exist in the first few years following the turn of the 21st Century. (Vikram Khanna, Straits Times, Article)


In an article by IoT Evangelist, Tom Raferty from SAP, he mentions a grandeur shift from ‘’muscle powered jobs” to “caring profession”, also highlighting the parallel relationship between increased wealth percentages and job increases in the professional services sector.


If your job functionality falls into the first category, there is a need for concern, but don’t jump off a bridge yet. Act now to diversify your skills sets, switch jobs to a more sustainable industry or focus on retraining and learning new skills by utilising the legion of free courses and training programmes available in the public domain.


Is your current position part of the second category? Thankfully, you still have a little bit of breathing space perhaps if only for the next three years, but your focus should already be on upskilling and acquiring additional competencies related to your current job functionality.


Listed under number three? You are not out of the woods either. Striving for excellence on a continuous basis to stay in demand and continually reinventing your expertise to be better than anyone else should be part of your medium-term career strategy, as the competition will get even tougher in years to come.

 

The Skills Matrix for 2030 – Will you be “on the list” or “in demand”?


While we can probably predict that anyone without a basic understanding of at least one of the STEM areas (Science, Technology, Engineering, Mathematics), will find a real challenge in securing a job in the near future, STEM is no longer a fail-safe mechanism to ensure job sustainability.


If you were expecting a Top 50 most wanted job skills list in this section, think again. ? (Google will render a search result of 73 900 records for just the past 12 months regarding this topic in under half a second.)


There is much more to this “in demand” job economics phenomenon than titles, duties and money.


Work in Future


Understanding the future nature of employment firstly, influenced by work democratisation and technological empowerment and how this will impact companies is essential, before devising your strategy for job sustainability.


The Global Consortium to Reimagine HR, Employment Alternatives, Talent, and the Enterprise (CHREATE), classifies organisations of the future, into four quadrants each with a unique approach to strategy, talent and work as depicted by the image below.

Image Source: John Boudreau, Harvard Business Review


STEAM Ahead


“While the core need for technical skills remains strong, another theme has entered the job market: the need for people with skills in communication, interpretation, design, and synthetic thinking. In a way, we can think of these as the arts, hence the evolution of education from STEM to STEAM. The jobs of the future, driven by the increasing use of technology, taking over rote tasks, will require social skills complementing the more technical abilities.” (Deloitte Insights, Report)


The need for social astuteness in previously deemed technical or back-office positions is becoming increasingly more important in this digital era.


Going Hybrid


The trend towards the blending of traditionally unrelated competencies pertaining to job requirements has been clearly visible in recent years. Engineers must get involved in sales and business development, actuaries are required to engage in marketing activities, and brand specialists are expected to navigate themselves around complex statistical revenue models and customer demographical data sets.


SMAC or get smacked out of a job


SMAC is the combined term used to describe the four main technology concepts currently driving corporate innovation: Social, Mobile, Analytics and Cloud. Regardless of age and your generation group, increasing your knowledge and integrating these technology pillars into your expertise suite, will provide for lucrative future employment prospects.


Future Job Survival

 

No one knows what the future holds. Yes, expert predictions can be made, and forecasts published about the next five, ten or fifty years regarding the global employment outlook and job security or sustainability prospects, but nothing is carved in stone apart from changes being the only constant variable.


Trying to outsmart artificial Intelligence, outplay the robots and outlast the machines, will not necessarily be a possibility for securing job sustainability the Fourth Industrial Revolution.


Understanding the future employment landscape, shifting traditional job expectations, adapting proactively to changes and embracing innovation and learning, will be the critical drivers required to remain part of the job economics demand equation.

OFFICE POLITICS – Fight or Flight

OFFICE POLITICS – Fight or Flight


The subject of Workplace Politics has been a much-debated topic for many years with opinions and advice from industry experts advocating anything from complete avoidance to full-on engagement. If the mere mention of Office Politics makes you cringe with images of backstabbing, gossip, sabotage, flattery and “cattery”, you are not alone.

Image Source: “Avoiding the Landmines of Office Politics”, Workplace Poker


“A recent survey of 1,000 US office workers by staffing firm Robert Half Accountemps found that 80% of professionals would agree that office politics is alive and well in the workplace. Only 14% said that participating in office politics wasn’t necessary at all to get ahead, compared with 42% in a similar survey in 2012.” (The Times, Article in 2016)


In the same study, the manifestation regarding the various types of office politics is categorised into five main areas as depicted in the diagram below:

Perhaps the negative connotation to this phenomenon can be eradicated to some extent, by referring to a couple of objective definitions:

  • The Collins Dictionary describes Workplace Politics as “the ways that power is shared in an organisation or workplace, and the ways that it is affected by the personal relationships between the people who work there”.
  • According to the Oxford Dictionary, Office Politics refers to “actions and behaviours involving competition for status or power in a workplace”.

The fact that Office Politics will remain an important issue impacting on company culture, team dynamics and employee satisfaction levels, is undeniable. How you end up dealing with its complexity, shall determine whether the professional environment you may find yourself in, will be leaning towards Utopia or be reminiscent of the Apocalypse.

 

 Game On, or Benched In?

 

“Sigmund Freud noted that although humans are social animals, living with others does not come easy. He compared people to a group of hedgehogs during the winter: they need to get close to each other to cope with the cold, but if they get too close they end up stinging each other with their prickly spines. This very rule governs the dynamic of office politics. You can’t go at it alone, but working with others does require some discomfort.” (Tomas Chamorro-Premuzic, Harvard Business Review Article)


Avoiding workplace politics is unfortunately not a viable option unless you are chief, cook and bottlewasher of your own one-person show. Getting involved in this politicking game with guns blazing is not advisable either. (So now what?) Is it even possible to engage in Workplace Politics fairly and come out the other side with one’s integrity still intact?


According to Professor Robert Hogan, a well-renowned psychologist in the fields of personality assessment, leadership and organisational effectiveness, the universal dynamics influencing workplace relationships comprise of three master motives: to get along, to get ahead or to find meaning. (The American Psychologist, Article)


  1. Getting along relates to people, engagement, relationships, cohesion and collaboration.

  1. Getting ahead focuses on advancement, challenge, power, achievement and success.

  1. Finding meaning refers to purpose, giving back, transferring knowledge, mentoring, justification and value-added.

Therefore, prior to entering the playing-field ask yourself the following question: What is my primary motive for getting into this corporate politicking game?

 

The Good, The Bad and The Ugly


Observing the political landscape within your organisation, before participating is highly advisable. You need to be aware of the negative as well as the positive politicking practices evident in the company that you work for. You will undoubtedly discover a combination of both because no organisation can adhere to a perfect compilation of only constructive Office Politics mechanisms.


1. The Good:


A balance exists in the formation of alliances between superiors and subordinates and peer to peer connections. Co-workers who excel at their jobs are being recognised by management, spurred on by teammates and still cracks an invite to the weekend braai, even if they got the promotion their colleague was gunning for as well.


Symbiotic networking is encouraged across business divisions, with the aim to assist rather than expect, resulting in favourable trade-offs to the benefit of both parties involved. Relationships display sincerity and authenticity.


Co-workers show high levels of emotional intelligence, are socially astute and understand the power of vertical and horizontal connections.


2. The Bad:


A distinct prevalence of a power imbalance leaning towards a particular group of people in the organisation, which could be management or co-workers. Power is used to exploit others and pursue selfish narratives at the detriment of team members.

The focus trends towards punishment instead of encouragement, as a motivator to achieve results.

There is a definite divide between employee groups, typically a “Us versus Them” mentality with the intention to sabotage others, or deprive them of opportunities to perform.


3. The Ugly:


Bullying of colleagues occurs, most often targeted at junior employees, support staff or employees receiving accolades and promotions. Common forms of direct bullying include abuse of power, harassment and intimidation. Also look out for indirect bullying where certain individuals are ostracised, ignored or excluded from informal team gatherings and events.

There is a recognisable display of Narcissism, taken to extreme levels of self-actualisation and manipulation to pursue own goals, with a complete lack of empathy towards colleagues.

 

Two Wrongs don’t make a Right

 

Understanding the nature of Workplace Politics is only the first step of your navigation strategy. The next challenge lies in applying the correct approach towards individuals who play Office Politics against you. Fighting fire with fire, will not solve the issue at hand and probably exponentially increase the detrimental impact thereof.


In a recent article written by Dr Isiah Hankel, an expert leadership consultant to Fortune 500 companies in the Biotechnology industry, the three most common scenarios relating to negative office politics are discussed.


1. Sand Bagging or Gloating:


Both scenarios relate to performance. Sand-bagging refers to individuals who purposefully provide misinformation, withhold information, make empty promises and refrain from performing tasks at optimal capacity. Gloating is a manipulative communication tactic where a person would passively fight against your chances of success, ridicule or diminish your achievement to promote theirs instead.


Defence Tactic: Give them praise and recognition. Sooner than later they will succumb to guilt and move on to another target.


2. Villainising, Torpedoing or Gossiping:


Some individuals are masters at diverting attention from their own lack of performance onto others by badmouthing their co-workers and creating doubts regarding their competence levels. Usually Sabotaging will follow suit, where direct actions would be taken to torpedo a colleague’s project for instance or spread false rumours about a person’s conduct or character.


Defence Tactic: Keep a record of events, email trails, meetings and collect as much information as possible, to state a proper case when the time comes. Eventually, the real villain will be identified and dealt with.


3. Playing the victim:


Every office has at least one employee who is continuously battered by seemingly unfair life events, illness, family issues or monetary problems, which they have no problem vocalising on a frequent basis to gain sympathy. This modus operandi is used to passively manipulate situations to fit their own agendas. These individuals are experts at creating feelings of guilt in others.


Defence Tactic: Stop paying attention and create a void. The less energy you spend on listening to the drama now, the less likely they are to involve you in their sob stories in future.


Play the Game, Not the Man

 

Taking things too personally when dealing with workplace politics creates a negative aura which may cause a detrimental spiral, limiting your professional and personal growth.


Revengeful actions should never form part of your strategy, even if you were a target of someone else’s shrewd tactics.


This may sound so corny, but being ‘’the better person’’ remains the most viable defence mechanism. Playing the game of politicking boils down to a few key strategies:


  • Aim to talk less and listen more
  • Observe and contemplate, don’t react and annihilate
  • Influence, as opposed to enforce
  • Transparency trumps secrecy
  • Persuade, rather than dictate
  • Seek to understand, before trying to be understood
  • Keep your moral compass intact

Fight, flight or play it right……the choice is yours.