Trends in the Job Market and the Growth of the Service Sector
 For anyone seeking employment today the job market has become a truly
frightening and competitive place. Opportunities in heavy manufacturing that in
the past dominated the U.S. economy are evaporating as well as many positions in
the service industry. Ranging from sales, health care administration, and
banking these positions are becoming harder to find making today's job market
one of the most competitive in American history. With the "Great Recession"
still contributing to rising unemployment rates as well as what has become
referred to as the looming "financial cliff", financial stability and job
security have replaced a job's financial compensation as a much more important
characteristic to the American worker. Workers are accepting less
pay in the hope that their position at a company will be more secure.
Job Security and Planning for the Future
Job Security ensures that mortgages and everyday expenses are paid but
further than that it allows for financial planning as a means for future cash
flow, security, and retirement planning. Too many Americans based on their
current occupations do not have the additional income required to begin saving
for that infamous rainy day. Living paycheck to paycheck is causing a shift in
how Americans perceive their employment, a change in aversion to risk as far as
pursuing alternative forms of employment, and is leaving many Americans staying
at jobs just because of the fear of finding another form of employment.
Changes in How Workers Perceive Their Employers
 Taking a quick snapshot of a recent trend in employment is the trend of
employees becoming less nested or tied down to a current employer. This is
illustrated by workers changing employment more frequently and suddenly than
ever before. Today it isn't uncommon for an employee to come and work at one
firm for less than six months and then leave to peruse another employment
opportunity. Sometimes these workers are headhunted or recruited away from their
current positions often by competitors most commonly for greater compensation or
positional authority.
Focusing on the period starting with the successful implementation of FDR's
New Deal and ending during the late 1980s there are several key differences in
the workforce. Both blue collar and white collar workers alike had very little
previous work experience because most of the time training was done on the job. Very little young people had a four year degree, and some applicants had little
to no formal education before they started at their job. Workers kept jobs for
much longer periods of time than do today where in the past, making a career out
of a position was a primary goal. Making a job a career had the advantages of
raises, pensions, and benefit packages where retirees could actually retire
comfortably at a reasonable age. Today it is very rare for a new occupation to
offer a pension and with the recent pension buy-outs by companies like Chrysler
it is clear that life-long pensions are a thing of the past. By removing
incentives companies are making it harder for employees to become truly vested
in them which is decreasing loyalty, productivity, and trust.
U.S. Economy and the Trade Deficit
 The service industry in this country is booming. Almost all new employment
opportunities are service related and range from health care, insurance, social
work, retail, restaurant staff, as well as other independent opportunities. It
is a strong belief that heavy manufacturing in this country is dead and the
future is in healthcare, infrastructure, and power generation. A trade deficit
exists in the U.S. because our economy as a whole makes less goods and services
than what we buy from other countries. When the value of goods and services we
import is higher than the level that we domestically produce, a trade deficit
exists.
A trade deficit has existed in this country for approximately thirty years. Some concerns are that we are becoming less self-sufficient that could
potentially make us vulnerable during a time of war. For example, our nation's
growing dependence on foreign natural resources like oil, natural gas, and
precious metals could make diplomacy one of our most important concerns in order
to preserve these supply channels.
Recent Shifts in the Workforce
With domestic, heavy manufacturing on its way out everyone is feeling the
effects. Traditionally considered blue collar positions, these skilled labor
positions have seen a serious decline into almost oblivion due to outsourcing,
cost-cutting, and internal redundancies in personnel among white collar
positions. For one of the first times since the blue collar white collar divide,
both blue collar and white collar workers are finding themselves out of work and
seeking the same service opportunities the new U.S. economy offers.
Anything from working as a bank teller, hospitality opportunities like front
desk personnel at a hotel, and truly anything are what skilled laborers or managers
are picking from in order to make ends meet.
Service Marketing
Service marketing is an extension of the traditional marketing mix consisting
of the four P's: price, product, place, and position. Service marketing is
referred to as the seven P's, and the additional components are physical
evidence, process, and people.
Physical Appearance: The look and feel of the
store, facility, and environment where business is being conducted
People: Employees that provide the service to
the customer. Sometimes referred to as front-line staff.
Processes: Policies and plans of actions that
give protocol for dealing with any problems that may have occurred during the
service encounter giving guidelines for something called service recovery.
Finding the Right Fit for the Right Job
 Service industry positions require a certain type of attitude and workplace
personality. Some people do great at their jobs making customers feel welcomed,
appreciated, and allow companies to preserve their success. These positions
require people to be essentially people persons and not everyone, especially
those who have been recently laid off, have the best attitudes. Successful
service industry work is not for everyone and employers are becoming more
selective than ever before because of the recent trends described above. Many
applicants are only applying because they need the source of income desperately
and this activity has some negative consequences.
By hiring the wrong people for the wrong job a temporary displacement is
caused where many service oriented companies all of a sudden have employees
working for them they may not of traditionally hired. This can go one of two
ways: The best scenario is that the new hire does their job well and adapts to
the socially challenging nature of a service sector position. The worse case
scenario is that the poor hire remains at the position as long as possible
performing it negatively. With each negative interaction with a customer the
employer's image, reputation, and brand are harmed. It is well known in service
marketing that although a customer may only tell a few friends about a good
service interaction, they will tell almost ten times as many about a negative
experience. By making good hiring decisions from upper management all the way
down to the front desk manager at for example a hotel chain, good customer
service and service encounters will be ensured providing for long-term
profitability and success.
Employees in the Wrong Jobs
With so much going on in the job market lately and adding to the sheer number of
college graduates currently seeking employment, it is clear that many are taking
jobs just for the sake of experience. If too many employees that are not
motivated by more altruistic factors other than just receiving a paycheck than
corporate culture can begin to be altered negatively. A major concern is
that eventually, the perceived value of some of our nation's most successful
brands like Starbucks and even McDonald's, can be harmed by the hiring of what
is most readily available; not the most desirable. Looking to the future
service personnel must be ready to adapt quickly to their surroundings, deal
with personal customer interactions with ease, and keep a positive attitude.
By making sure recent hires are good hires all of the negative consequences
discussed here can be avoided.
Managers need to have honest and open dialogue
with their employees and give periodical performance reviews.
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Trends in the Job Market and the Growth of the Service Sector |
