Of all the leading factors to consider when assessing a job opportunity or strategizing one’s future options, job security is one of the most critical concerns. Especially when starting your career or considering a change, knowing you can depend on a consistent salary and work conditions and that your work life won’t change overnight is reassuring and valuable.
There are two primary avenues workers face in obtaining a sense of job security. The first, which is the most common and seemingly dependable, is to work for an established company whose ownership controls salaries and business decisions. The second is being the company owner: owning a business or franchise, where success or failure resides with the entrepreneur who decides salary and organizational issues.
The reality of today’s job market is that the traditional belief that entrepreneurship is "too risky" is being replaced by more and more people launching out on their own, becoming their own bosses, and capturing their part of the American Dream.
The Shift in Job Security
Job security refers to the stability of a person’s employment—in compensation, position, and job duties. Traditional full-time employment meant a predictable salary, benefits, and a clear career path within the company. Job security is now perceived as looking out for yourself and seeking newer and more rewarding opportunities elsewhere.
Consider these findings: In a recent survey of 6,240 U.S. workers, 68% of independent workers responded to the statement “I feel more secure working independently.” The Bureau of Labor Statistics reports that 3.8 million Americans quit their jobs in April 2023 alone. According to a McKinsey study, “31% of employees who left their job in the past six months did so to start a new business.”
Job owners will never be as motivated about your job and career as you are. Today’s workers seem drawn to control their destinies and not have to rely on someone else to make all those important decisions, one of the most significant being job security.
3 Reasons Why Business Ownership Offers A Better Sense of Job Security
1. Financial Security
In a traditional job, you are usually compensated with a steady, bi-weekly paycheck, which provides a certain amount of surety and peace of mind. You start at a certain salary and are given occasional raises and bonuses along the way. There is little room for negotiation for higher wages.
Business ownership and franchising provide excellent sources of financial security because you can set your financial expectations and then direct the activities you need your business to do to achieve them. Higher earnings are always possible. It’s one of the great benefits of owning a business. Business owners can increase their income by growing their businesses, finding new customers, expanding into new markets, and offering new product lines.
2. Control Over Your Career Path
An employee typically has a career path and strives to progress within the company over time in a traditional job. However, this is limited to resources and company vision. Employees don’t always have opportunities for growth and advancement, especially at a pace they expect, which can lead to employee boredom and lack of fulfillment.
One of the greatest benefits of owning a small business is that the business owners are responsible and in control of creating their career paths and opportunities. Business ownership offers increased stability and a greater chance to realize one’s potential, compared to relying on someone else for professional growth. And if you don’t have the skills, finances, or resources needed to advance, there are many opportunities to acquire them at your own pace and motivation level.
3. Avoid Lay-Offs
With recession fears and a post-pandemic workplace, there’s been a rise in layoffs in recent years. Employees of traditional jobs are more dependent on their employers for their livelihood. Or if their employer encounters difficult times, wants to restructure the business, or venture off in another direction, employee jobs may be at risk—even though they had little to say in the matter.
When you own your own business, you can adjust to changing economic conditions rather than be subject to the decisions of your employer. Foreseeing market changes, you have the ability to make the necessary adjustments to absorb or avoid the consequences of economic downturns. You can also act more proactively and increase your customer base, open new product lines, or cut costs.
You should also consider a business that is more recession resilient. The home services industry is one option that provides essential services to homeowners and is consistently in-demand regardless of economic climate.
Job security is a key reason people choose traditional employment, but declining perceptions of job security are leading more people to opt for the flexibility, autonomy, and control that business ownership provides.
Neighborly® offers franchise opportunities in over 19 different home service industries designed with an established business model for optimal professional security, increased flexibility in your work and home life, and the chance to live your dreams. Take this QUIZ today to find out more about the opportunities that best fit your personality, skills, and work lifestyle preferences.