You Should Apply Vacancy Rate to Your Job!

[Walter Roby jr]

So here I am in the corporate world like many 9 to 5'ers here on BP and trying to build a portfolio of passive income. As we all know this takes time and is by no means a get rich quick play.

It seems about every few months someone new in the company gets laid off in each department. Although I am confident in my work and needs within the company, I continue to try and remind myself that my role is just a number that can be pulled at the slightest moment.

How can we as corporate employees combat unexpected layoffs aside from debilitating unemployment lines? Apply vacancy rate to your salary requirements.

The math is simple. Supposed that you see on average employees with the company who have been around for 5 years get laid off. Assume it takes them 6 months to find another suitable job (being conservative). That means 6 months unemployed / 60 months of employment = your 10% vacancy rate for an employer. Let's you make $60K per year. Add your vacancy rate on top and you get $66K as your new salary requirement. Now it may be a stretch to be asking for more than market value but that's when your analysis, pitch, and negotiation can take precedence. Also note that this is before taxes.

Also note that when you get the increase in pay, set this aside and treat it as future lost rent/pay.

Thoughts?