Underemployment is "New Normal" - Here's How to Beat It

If you spend as much time as I do studying employment trends, then you know there's a new employment crisis brewing. The number of people who are "underemployed" is rising. The basic definition of underemployment is anyone working fewer than 40 hours/week and/or in a job beneath their skill level. (Check out this article on how the recent increase in jobs was primarily for part-time work - creating a decrease in unemployment, but an increase in underemployment.) This is the new normal. Companies aren't feeling confident in their abilities to generate sales. As a result, they're playing it safe and hiring part-time and contract workers instead of full-time employees. I was in the staffing industry for many years. I remember an executive predicting in a meeting that eventually 50%+ of the workforce would be contract workers working multiple assignments. I believe that will be the case in the next 15-20 years.

Underemployment is here to stay - take steps now to beat it.

Full-time employment as we know it is slowly but surely disintegrating. Yet, professionals are not picking up on this reality and continue to approach their careers as if long-term, full-time employment at their highest skill level should be the only goal. This is going to prove a costly mistake for millions of professionals. It already has for some. The longer a person sticks with this outdated career goal, the more ellusive it will become.

Here's an example of underemployment today...

Jim is a 34 year old professional with a Bachelor's degree. His goal is to find a good job with benefits where he only has to work 40 hours/week. Once he finds that job, Jim is afraid to lose it. He becomes focused on doing what he thinks he can to ensure he doesn't get fired. Jim doesn't take risks. He doesn't speak up when he sees problems. He also struggles with some of the business decisions he sees the management team making, but looks the other way. Jim chooses to quietly deal with the confinement of the job and reminds himself daily he has security - a/k/a a pair of golden handcuffs. Unfortunately, Jim doesn't account for the pace at which businesses are changing in his industry. It's increasing to the point companies can't offer long-term employment anymore. So, over the course of 10 years, while Jim keeps his head down on the job and does what he can to not 'rock the boat,' he slowly becomes obsolete. His role changes some, and he gets tiny annual pay increases, but eventually, his department is no longer considered an asset to the firm. Jim gets laid off.

Suddenly, Jim is 44, out of work, and has no idea how to find a new job, let alone know what he wants to do next. He is given a 6 month severance package and quickly burns through it. He goes on unemployement, but watches his savings dwindle. Currently, the average length of job search in America is 9+ months. But, because Jim hasn't been keeping his skills current or networking while he was employed, Jim's search takes 2 years. With 80% of all jobs being gotten via referral, Jim has to slowly build his network in order to get a shot at any jobs at all. And, to make matters worse, because he is out of work, Jim is being discriminated against - making it harder to get considered for jobs. Jim loses all of his fnancial security and eventually ends up taking a job at half the pay he used to make doing a job two levels down from what he did before. Jim is underemployed and financially starting over.

Now, let's see what can happen when someone throws away the idea of long-term, full-time employment as the ideal career goal...

Lisa is also 34 with a Bachelors degree. However, Lisa is tired of working "for" employers. Now, she isn't ready to start her own company, but she does want to find a way to feel in control of her career. So, she decides to build a more flexible career gameplan. Lisa identifies she wants to solve a particular type of problem within her industry and focuses on becoming a subject-matter expert in her field. She researches potential employers where she can gain some valuable experience to help her become more knowledgeable. The pay is lower than what she could be making, but Lisa doesn't plan to be at this company forever. Perhaps it will work out and she'll be able to grow at this firm over several years, but she's not holding her breath. Instead, she sets a 2-year goal for herself. In that time, she learns as much as she can at the job, but also invests in some online courses to help her supplement her learning. And, she volunteers to do a project pro bono for a colleague over at a start-up as a way to get additional experience.

At the end of 2 years, Lisa decides it's time to move on and starts looking for a more challenging role. With her current employment and extracurricular activities, she earns a new spot paying twice as much as she makes now. She accepts and starts to build her new 2-year gameplan.

This continues for a decade. Sometimes, Lisa ends up staying for an additional 2 years at the firm she is at because the opportunity to grow is there, but other times she knows she needs to move on. By now, she has a huge network of colleagues she's amassed through her efforts. From former co-workers to networking acquaintances, Lisa is able to tap into the power of her connections and reputation to easily learn of new opportunities as they arise. In fact, she gets calls frequently from people looking to hire her based on recommendations they received from folks in her network. Lisa is professionally emancipated. She is never underemployed. And best of all, she is satisfied with the results.

Yes, Lisa's career gameplan takes a bit more effort, but the dividends are worth it, aren't they?

What about loyalty to employers?

Some people are going to fight back in the comments below this article and say Lisa is a job hopper who is going to get a bad reputation and eventually won't get hired. Not true. There's a big difference between a person who just jumps jobs becuase they are disatisfied and a professional who strategically moves on to grow their skills. As I mentioned, in some cases, Lisa does stay for more than 2 years because the opportunity to grow is there. However, I think it's more important to remember none of the companies she worked for guaranteed loyalty to her - and they don't guarantee us loyalty either. Unless you are part of a union, you are an "at-will" employee, which means either side can terminate the relationship at any time. If a company has to lay you off to keep the business in business, they will. If they have to hire you on a part-time or contract basis to keep their costs down, they will. And that's happening more frequently now due to the instability of the market. This new reality means taking the emotion out of business and doing what's best for your business-of-one. Folks like Lisa undestand they work with companies, not for them. She is free to build a career that ensures she is employable and it taking a proactive approach to do so.

7 Steps to Avoid Underemployment

If you want to be more like Lisa, then you need to take action. Here's what to do:

1) Identify what you want to be a subject-matter expert on within your industry. Yes, you will be capable of doing many different things, but specialists shine in a sea of generalists.

2) Pursue opportunities to build your skills and abilities in this area. Even if you have to pay for the training yourself or volunteer outside your normal working hours, do what it takes to stand out in your field.

3) Get clear on what you want to accomplish within 2 years. Then, check in with yourself monthly to make sure you are moving in the right direction.

4) Get a mentor or coach to work with you. Performance coaching is so important. We aren't disciplined enough to do this alone. Having and evaluate our plan and progress can help us see things we can't.

5) Always push past your comfort zone. The moment you decided to "coast" in your career, you are headed towards underemployment. You must find ways to challenge yourself or will find yourself on the "disposable" list.

6) Take calculated risks on a regular basis. Some of the greatest career lessons come from mistakes. They are how we learn and grow. Playing it safe isn't challenging - and leads to underemployment.

7) Surround yourself with people who also want to be professionally emancipated. The company we keep matters greatly. You need to be around people who think like you do. Don't let outdated professionals with career-limiting mindsets hold you down.

What other tips can readers share? What's been your experience with underemployment? Are you ready to be professionally emancipated?

I'd love to hear your comments below.

If you want to read more of what I've written, check out my articles on Inc.com.

P.S. - First time reading my posts? Thanks for taking the time to stop by! Not only do I write for Linkedin, but I'm also founder of a popular career advice site,CAREEREALISM,and currently run the career coaching program,CareerHMO. I hope you'll check them both out!

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CAREEREALISM’s Founder, J.T. O’Donnell is a nationally syndicated career expert and workplace consultant who helps American workers of all ages find greater professional satisfaction. Her book, CAREEREALISM: The Smart Approach to a Satisfying Career, outlines her highly successful career-coaching methodology. Purchase her e-book of CAREEREALISM for only $9.95 by clicking here !

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