January is coming to an end and with it a dry spell for some (aka Njaanuary). It’s been a month where spending has been dissimilar to that of December. Matters of income security constituted most of the conversations this month, closely followed by those of job security. The importance of each however, depends on individual priorities.
Job security refers to the assurance (or lack of it) that you have about the continuity of gainful employment for your work life. Among the factors that affect your job security are terms of the contract of employment and labor laws of the respective country. Matters of job security are more popular with those already in the workplace. Discontinuing in it not only means going back to job-hunting but also a decrease from their current income. In Kenya, the Employment Act 2007 states that a contract of service is terminable at the end of the period of 28 days following the giving of notice in writing. Different companies however, have their own arrangements pertaining to the termination of contracts. Among the companies that hit the media with news on layoffs is Kenya Airways. After all, there’s still rent and other operational needs to pay for.
Income security refers to assurance that you have a source of revenue to meet your needs. It is concerned with the inflow of money. In finance, it specifically refers to investments such as bonds and debentures which pay fixed level of income at nominated dates. As mentioned in the article Investing in Bonds: How it works fixed-income securities offer sure returns which cannot be compared to other forms of investment.
Which is better?
According to a research by the Society for Human Resource Management (SHRM), job security goes hand-in-hand with work benefits. Employees surveyed emphasized on concerns about healthcare which comes as part of the perk of being employed. It also notes that people prefer to be in an environment where they have an opportunity to utilize their skills and abilities. The latter also holds true (arguably) for those who prefer income stability over job security. Certified income without confinement to a job allows the individual to pursue what they are best at. If such was already the case, it gives them an opportunity to broaden their sources of revenue.
Is having a job necessary, or is the income it attracts of more value to you? In a power-oriented society where status is key, having a job is the most important. It makes for conversation and “saves face” when among friends. Unfortunately, status doesn’t pay your rent.