Why Stay in School, Part 2: Responding to Globalization

In my last article "Why Stay In School, Part 1: The Impact of Globalization" I began discussing first how globalization and the technology that enables it are already in the process of eliminating "bottom rung" jobs - those relatively unskilled positions at the bottom of the labor hierarchy. They used to be called "entry level" positions, but now they're vanishing.

The frightening thing is that the technology and resources already exist today to eliminate every order taker at a fast food "drive thru" position. Now it's just a matter of reaching the "break even point" where it's widely cheaper to use order takers at Indian call centers instead of folks entering the marketplace in your home town. My theory: once using an Indian call center's cost per hour approximates the minimum wage, offshore call centers are already positioned to eliminate those entry level jobs. Indian call centers - after all - don't usually call in sick or fail to show up or require uniforms at company expense. The argument could be made that once off shore call centers can be employed for just the minimum hourly wage, the lack of "down time" for individuals not showing up or coming in late could put them widely into use. For that reason, raising the national minimum wage works against the most vulnerable workers. I hope this continues the process of shocking young people into the need to protect themselves by taking as much responsibility as they can for their personal welfare and "escape the bottom rung" of jobs.

I also suggested one response individuals could take to prepare themselves for the loss of "bottom rung" jobs: pursuing their education as far as their skills, resources, personal endurance and finances will allow. The rationale for this is simple. Even if a 4 year bachelor's degree does leave one "job ready" bear in mind that usually the job opportunities increase dramatically when additional training is earned. Remember that according to a variety of government agencies, U.S. residents with a HS diploma earned a median annual salary of $27,915 in the year 2003. People with an Associate degree earned $35,958. And the numbers increase proportionately up to earning a doctorate. Having a Doctorate degree was worth another $60,556 to workers in 2003! U.S. residents with a HS diploma earned a median annual salary of $27,915 in the year 2003. People with a Doctorate degree earned $88,471.

Anything to move the individual off the "bottom rung" by way of certifications, licenses, and specialized skill development is to be welcomed in the era of globalization!

Sometimes this advice about "education" is taken in the wrong way... as a carte blanche recommendation to achieve education the "traditional" (and expensive way). It's not.

A non-traditional approach is often in order. For example, many times having a bachelor's degree is a necessary hurdle to entering a particular graduate program, but almost any accredited bachelor's degree will suffice. My master's degree, for example, required a preliminary 4 year degree, but not one in the same field. Those taking similar course work in their college days were required to essentially repeat those studies. Those entering the program without a degree in a related field were at no disadvantage. This is the reality of the B.A. or B.S. degree - at times they're a mere hurdle to get into a graduate degree program without contributing to the study of a particular field directly.

If that is true of your chosen profession, then non-traditional ways of achieving an accredited college degree are in order. More students should learn their options for "CLEP"ing out of class, take advanced placement exams, and the use of Community Colleges to lessen the financial impact of schooling.(See resources connected with this article for more information on this.)

I've told my own children that it would be good to get a high school diploma and associate's degree at the same time. Programs like this are becoming more popular all the time. At the very least I want them to earn as many hours of college credit as possible while still in high school. Why not pursue dual enrollment and "kill two birds with one stone"? That will give them more years to spend time learning the skills that will increase their odds of avoiding the impact of globalization in their own careers and better provide for their families in the process.

This means folks preparing for their future must be better educated and much more selective consumers of the "educational product" than they currently may be. Thankfully today's online learning revolution has opened up a variety of options that make access to education easier and less expensive just as the need has arrived.

Other strategies for leaving the "bottom rung":

1. Recognize the type of economy we're in. It's no longer even the "service" economy per se. Increasingly we're in the "knowledge" economy. Service is a component in any business, but not just any low skilled service ability will survive if it can be replaced by a technological innovation or overseas call center. The ability to "warehouse" knowledge in your brain is important and enhanced by education. But more importantly the ability to FIND information on your own, to think logically and conduct research, and to synthesize knowldge into solutions is an even more important skill.

2. Increasingly our economy is turning entrepreneurial. This trend is expected to continue as individuals conclude that few organizations either care to provide career security on the one hand or - on the other - are ABLE to provide it for very long. Being entrepreneurial doesn't mean you have to be able to "sell ice to Eskimos". It does mean one has the eye to see opportunity and seize it in a way consistent with your personal strengths and values.

If you don't feel very entrepreneurial, it's not time to give up. Every entrepreneurial venture needs a variety of skills to perform well. No one person can market a business or product, handle the finances and oversee production at the same time. Identify where your skills lie. Then use your educational years to network with individuals and organizations you consider entrepreneurial enough to weather the storms of globalization. These organizations won't always be the old, large "blue chip" firms your parents knew or you grew up with.

You may even want to test your entrepreneurial abilities by starting a small busines while you're in school. Have a goal not to spend more than a few hundred dollars at most to get started. But try your hand at entrepreneurship. Keep your start up expenses low. Even if you fail, you will give yourself invaluable lessons on how to spot the entrepreneurial groups you should be associated with to thrive in the era of the increasingly global economy.

To summarize: Find out the education you need to escape the bottom rung jobs on the corporate job ladder. Pursue that education as a wise consumer. Get as much mileage for your investment of educational dollars as possible. Recognize the type of economy we're in. Your job is to obtain, retain, and sythesize knowledge into a product first. Only secondarily is tomorrow's economy a "service" economy. Realize that our economy is becoming increasingly entrepreneurial. Your school days are the prime time to test your entrepreneurial skills. Whether you can start your own business or realize you need to be part of a larger team, you will at least learn how to identify the entrepreneurial allies you need to help protect yourself and your income against the threats of globalization. Also use your school years to network early with entrepreneurial leaders who can work with you in the future.