Job security? That’s a thing of the past.

Can Big Tech afford more layoffs without sacrificing productivity?

According to Elon Musk, the answer is yes. The eccentric visionary thinks that more job cuts in the tech industry will improve productivity in most Silicon Valley companies.

Big Tech, Big Boot

This year's tsunami layoffs have swept epic waves of fear across the tech sector. And the latest comment by Musk is escalating further anxiety. The current situation is a stark contrast to the hiring spree by technology firms to cater to the phenomenal demand for digital goods and services as a result of remote working and lockdowns. The zealous over-hiring during the pandemic is now biting Big Tech in the back.  Hard.

As major projects and funding dry up, tech firms are now letting people go by tens of thousands.

Retrenchment On The Rise

Technology companies aren’t the only ones letting go of employees. Other industries are also experiencing increased layoffs amid slow economic growth, rising cost of living, and heightened geopolitical conflicts. According to Bloomberg, almost 800 companies have culled 473,000 jobs globally in just over 5 months from October 2022 to March 2023. Some of these same firms are also mandating that staff return back to their desks or risk their careers.

Companies are adopting a cautious stance and slowing the pace of hiring, preferring to streamline their operations in anxious contemplation of an economic slowdown. In Singapore, business reorganization or restructuring in the first quarter of 2023 was the top factor for retrenchments as the nation’s retrenchments rose for the 3rd consecutive quarter.

The mere mention of a “reorganization” or “business restructuring” sets off alarm bells for most employees - that their jobs are going to be on the line.

The Growing Disillusion

The tides have turned ominously. The Great Resignation and Quiet Quitting by employees have now been slapped back with The Great Layoffs. The sense of security attached to a stable payroll job has been violently shaken in recent years since the pandemic, and it now appears to worsen. With ongoing layoffs that have no end in sight, the idea that job security comes with a “full-time” title becomes a growing disillusion. Affected workers are now reconsidering full-time employment, having felt betrayed by the companies that have tossed them aside. The labor pullback is also making workers reevaluate their careers and priorities. This turn in tide may signal a chance at a better work-life balance that is not at the beck and call (and dismissal) by employers. Freelance projects, contract work, and remote work flexibility take priority, along with work that is more fulfilling and within one’s control.

Is your job 100% secure when you are employed full-time? Hardly, it seems. The latest massive layoffs demonstrate that you are 100% dispensable when you are an employee.

The Market Floods With Cream Of The Crop

The exodus of almost half a million people is flooding the market, and a good percentage of them are incredibly talented developers, software engineers, and non-tech professionals. Where will they head? Given how tech has a ubiquitous influence in all aspects of the economy, companies across all industries will be in need of these talents. Healthcare, banking, cybersecurity, AI, education, telecommunications, big data analytics, logistics, agriculture, governmental firms, etc. - these industries are embracing the digital revolution and proficient tech professionals will be much sought after by these companies.

Within this talent pool, there will also be those who no longer feel that a 9-5 career is a safe bet. Some of them have come to a realization that they don’t want to be tied to one company or be deskbound in an office. Others may take the opportunity to strike out on their own or turn to freelance work for increased flexibility, autonomy, and control.

Job Insecurity: Is The Grass Greener On The Freelance Side?

As layoffs become more widespread and job security takes a brutal beating, freelancing and independent work are rising to the limelight. Recent research from MBO Partners State of Independence study shows that 67% of independent workers in the U.S. feel more secure working independently than on a payroll job.

Last year, 64% said working independently was entirely their choice, and satisfaction levels with their work choice were high at 76%. As it turned out, these individuals felt happier and healthier working on their own than at traditional jobs.

Independent work will define the future of work as more turn to the freelance economy. According to Statistica Research Department, 86.5 million people will be freelancing in the United States and will make up 50.9 percent of the total U.S. workforce in 2027.

Create Your Own Job Security

The job security that used to accompany regular employment is no longer. Instead of searching for job security that isn’t guaranteed, it makes more sense to create one’s own job security.

When you work for yourself, the security that you want lies in your own hands. Taking charge of your work life allows you to prioritize your needs, set your own standards, take on the jobs that you want, and decide how much you want to work to create the work-life balance that you desire.

It is true that freelancing doesn’t come with the perks of paid leave, sick leave, child care, medical welfare, and all the other incentives that are packaged as employment benefits to tie an individual down to a company. Freelancing, however, provides the freedom and flexibility to pursue the more important things in life: family time, work-life balance, better health, remote work flexibility, client and project choices, and if you’d like, even a four-day work week.

More importantly, freelancing frees you from the clutches of a single employer and offers the option of having multiple sources of income. Rather than being handed a fixed monthly paycheck, freelancers work for a number of different companies, deciding how much they can earn, how much work they want to take on, and also when they want to take time off. Even if work with one company runs dry, there are other income streams to turn to or expand into. Simply put, freelancing means not putting all your eggs in one basket.

Freelancing is a very liberating way to work, but this route is not for the faint-hearted. There will be times when you will experience the stress of not having enough work or even feel unmotivated to work. But one thing is for sure, if you have the grit and determination to make it work for you, the job security you are looking for will be yours to keep.

Keen to kickstart your freelancing career? This starter guide to becoming a freelancer might just come in handy.

There’s a better way to grow. And it’s not the traditional way.

It’s about rethinking traditional employment archetypes. Can we progress from an economy built on full time employment habitually enslaved by unemployment fears, to one where individuals have greater autonomy and are self motivated to do work that inspires them? And as a result,  benefit the economy as a whole?

You can’t own full time employees. But you can build a winning team with talent management companies. As businesses demand more, external talents are emerging as the sure forerunners of an agile workforce. At Chance Upon, we partner businesses to get a head start over competition by creating collaborative work between companies and the right talents.

References

• Huileng Tan, Elon Musk says there’s more room for job cuts at Big Tech companies, Business Insider (25 May 2023)
• Mathieu Benhamou, Jennah Haque, Phil Kuntz and Jo Constantz, Global Layoffs Extend Far Beyond Big Tech, Bloomberg (21 Mar 2023)
• Singapore retrenchments rise for 3rd straight quarter, unemployment stays low, Channel News Asia, (28 Apr 2023)
• Happier, Healthier & Wealthier. State of Independence in America 2022, MBO Partners
• Number of freelancers in the U.S. 2017-2028, Statista Research Department, (30 Sep 2022)