Working Wounded: The Year of the Little Guy

Jan. 12, 2007 — -- DEAR READERS: I've never pretended to be Jeanne Dixon in a column before, but I think that the workplace will change dramatically for the better in 2007. (No, that wasn't a typo.)

My predictions are:

1. Maximum impact for the minimum wage
For years businesses have screamed that an increase in the minimum wage would have dire consequences for the economy -- companies would go out of business and employees would be laid off.

But in the November elections seven states raised the minimum wage above $5.25. And the sky didn't fall. This is in addition to the 21 states that currently have a minimum wage higher than the federal government's. The reason that the havoc hasn't taken place is simple -- people at the lower end of the wage scale buy more pizza than billionaires buy yachts. And studies show that even small businesses doubt that increasing the minimum wage will hurt their bottom lines. In fact, the increased minimum wage will have maximum impact because it will give a boost to the overall economy, including the businesses that have to pay the higher wages.

2. More executive pay cuts
Home Depot's CEO was deposed by shareholders because his pay didn't match his performance. OK, his arrogance also had something to do with it. For years we've heard from compensation experts that executive pay has gone too far. These days, shareholder activists have taken up the cause, and Bob Nardelli is the first of many CEOs, I predict, who will be forced to have their pay go in the same direction as the stock price. Great performance will be rewarded, and poor performance will be penalized.

3. A full-blown labor shortage will take hold
This one is easy to predict. There are 76 million baby boomers and only 44 million Gen-Xers. With boomers starting to think more about weekends and Winnebagos than work, we're going to see more and more "Help Wanted" signs. Have you already noticed companies using their advertising time to recruit employees rather than sell their products? I predict an even tighter job market in 2007.

4. Get ready to be fired, Mr. CEO
The Donald's favorite phrase, "You're fired," will increasingly be directed at CEOs. CEOs are getting pushed out of the catbird seat at an ever increasing rate. The trend will really explode in '07, I predict. (And Donald, you should know better than to pick a fight with Rosie, she's 10 times more popular than you.)

5. 2007 is the year of the little guy (and gal)
The combination of executive greed and the labor shortage will turn 2007 into the year that our economy will turn from a buyer's market to a seller's market. And as the little guy and gal get more clout, boss and company leverage will drop, and employees will have more say about their jobs and the workplace in general.

I'd like to hear your thoughts on what's wrong with my predictions and what you think lies ahead in the next year.

Here are the results from a recent workingwounded.com/ABCNEWS.com online ballot:

Working Wounded/ABCNEWS.com online ballot question: What do you think will happen next year?

• Things will get better, 23.8 percent
• Things will get worse, 37.7 percent
• Things will be remarkably like they were this year, 38.3 percent

Our winning strategy for retiring comes from L.R. in Vancouver, Canada:

"Retirement is a pipe dream. We all need to find a job we love, or at least like, because we're going to all be working for a long, long time. So to me it's more important than ever to find a job you like."

Jane Bryant Quinn, business writer, offers this week's thought:
"The rule on staying alive as a forecaster is to give 'em a number or give 'em a date, but never give 'em both at once."

Many workers want to leave their jobs in 2007:

• 20 percent of all workers will be looking to change jobs this year
• Of those, 48 percent are looking for better pay and/or career advancement
• 9 percent are retiring
• 6 percent are planning on starting their own businesses

From: CareerBuilder

Bob Rosner is a best selling author, speaker and internationally syndicated columnist. He'd love to hear your thoughts on this topic, especially if you have better ideas than he does. His books include: "The Boss's Survival Guide" and "Gray Matters: The Workplace Survival Guide." Send your questions or comments to him via: bob@workingwounded.com.