Lifetime employment, guaranteeing employees a job for their entire working lives, was once common in some countries, such as Japan. The policy was seen as a means to promote loyalty among employees. If they saw their company as a paternal figure, they would be more likely to support its decisions without question and work hard for its success; or so the reasoning wont. However, this business policy was proved to be impractical in the long-term, and I do not believe that companies should offer lifetime employment today.

Due to the rapid developments in most industries today, it is necessary for companies to remain on the cutting edge. If they offer lifetime employment, they may have no room in the organization for new members who possess the latest skills and knowledge. Furthermore, constant promotion means that such firms are often top-heavy with managers and do not efficiently utilize the managers’ skills. Finally, there is the danger that employees, knowing that they are unlikely to be replaced, would become complacent and no longer work as hard or make an effort to improve their skills.

It is my belief that the time for guaranteed lifetime employment has passed. In the past, it seemed to work in young industries where there was a lot of room for growth. But in today’s more competitive economy, it is no longer feasible. Companies cannot guarantee employment and remain flexible and innovative enough to succeed. And if they fail, there will be no employment for anyone.