Because the skill-set needed to do the work changes so rapidly, companies are much less likely to believe in the “career employee;” someone who stays on the payroll for 30 or 40 years, and then retiring on a defined-benefit pension. That would require advanced management practices which include planning for ongoing training and development for the entire workforce. A cost no employer wants to take on. And so instead, outsourcing is called upon to meet the changing needs of companies.
Thanks to outsourcing sites like ODesk, Elance, and RentACoder; a contractor can be sourced, hired, paid, all without a single face-to-face meeting. This allows small companies to draw upon a labor pool that spans the globe, something previously limited to only the largest of corporations. And, as an added benefit, they can theoretically pay Philipino labor-rates while earning New York City sales. The carry trade is huge; but it comes at a cost: money flowing out of the local economy that will not come back. Or that’s the fear. But what about the reality?
The reality is that having an inexpensive source of highly-skilled labor that a Middle-class American can afford to hire allows us to retain the role of “Innovator” while other jobs and roles and titles are sent overseas. Now, easier than ever, an ordinary person can take $10,000 and invest it directly into a company that they own 100% of, and pay to design, program, market, and sell a computer game, program, or phone app. No rent for office space, payroll taxes, equipment purchases required.
It’s a shift, but one that doesn’t have to hurt us. Not if we have the courage to change with the times, and take on the responsibility to ourselves that is being abdicated by our previous employers. We have to commit to personal development, lifelong learning, and the creation and maintenance of market-valued skills that will get and keep us employed. Or, alternatively, we can create a new idea and see it through to completion, and reap the profits. It’s up to you which you choose, but either way you can come out for the better.
Remember: it’s not a problem unless you have a solution. Otherwise it’s just a complaint. I for one am tired of just sitting around complaining. I’m ready for solutions.
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