{"id":53105,"date":"2021-11-16T15:17:00","date_gmt":"2021-11-16T19:17:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=53105"},"modified":"2021-11-20T14:58:19","modified_gmt":"2021-11-20T18:58:19","slug":"trading-freedom-for-security","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/trading-freedom-for-security\/","title":{"rendered":"Trading Freedom for Security Is Fair Game"},"content":{"rendered":"\n<p>How much does your job limit your freedom? Apart from freedom, what other sacrifices do you have to make for the security your job provides?<\/p>\n\n\n\n<p>In his book <em>Skin in the Game<\/em>, <a href=\"https:\/\/www.shortform.com\/blog\/nassim-nicholas-taleb\/\">Nassim Taleb<\/a> argues that employment is a mutually beneficial agreement in which employees are trading freedom for security to a company that, in exchange, bears some of their personal risks. In Taleb&#8217;s words, employees put their skin in the company\u2019s game.<\/p>\n\n\n\n<p>In this article, we&#8217;ll discuss the risk-freedom trade-off made by employees, detailing the benefits employees receive from employers and the ways in which their freedom is limited.  <\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Employers Purposefully Limit Their Employees\u2019 Freedom<\/strong><\/h2>\n\n\n\n<p>For businesses, hiring employees is a way to minimize risk. Today\u2019s corporations are so efficient and produce goods at such a massive scale that any obstacle in the assembly line comes at an enormous cost. Undependability and errors are more costly than ever before.<\/p>\n\n\n\n<p>Employers do what they can to make sure their employees keep production running and subjugate their desires for the sake of the company. As Taleb puts it, employers want to take away their employees\u2019 freedom.&nbsp;<\/p>\n\n\n\n<p>Employers give employees something to lose\u2014skin in the company\u2019s game\u2014so they\u2019re more likely to reliably fulfill their duty. <strong>The <a href=\"https:\/\/www.shortform.com\/blog\/ideal-employee\/\">ideal employee<\/a> is scared enough of losing what the company gives him that he makes his duty to the company a central priority of his life. <\/strong>People are far more motivated by fear of losing what they have than the desire for something they don\u2019t\u2014employers use this fact to ensure their employees\u2019 loyalty.<\/p>\n\n\n\n<p>Essentially, employers pay employees to put skin in <em>their<\/em> game and accept some of the company\u2019s risk for a share of its rewards. This not only benefits the employers, who earn profits from the work of their employees, but also the consumers, who get to buy the things they want.<\/p>\n\n\n\n<p>(Shortform note: While Taleb argues that the employee relationship is driven by fear, this doesn\u2019t mean that the workplace itself needs to be driven by fear. If workers are constantly threatened with being fired or otherwise punished, the miserable work experience will make them <em>less <\/em>afraid of losing their job, making employees less reliable and defeating the purpose of employment. On top of this, studies have shown that <a href=\"https:\/\/hbr.org\/2015\/12\/proof-that-positive-work-cultures-are-more-productive\">fear-based workplaces hinder productivity<\/a>, further incentivizing owners to maintain a positive work environment.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Employees Trade Freedom for Security<\/strong><\/h3>\n\n\n\n<p>What does this skin in the game look like? What does the employee receive in exchange for the freedom that they\u2019re so afraid to lose?<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.shortform.com\/blog\/career-security\/\">Job Security<\/a><\/li><li>Benefits and Perks<\/li><li>Personal Identity<\/li><\/ul>\n\n\n\n<p>We\u2019ll discuss each of these in turn.<\/p>\n\n\n\n<p><strong>For employees, the central exchange of employment is<\/strong> <strong>trading freedom for security. <\/strong>Employees are less free than the unemployed\u2014eight hours a day, they\u2019re forced to go to work.<\/p>\n\n\n\n<p>In exchange, though,<em> their personal risk is greatly reduced<\/em>. As long as an employee fulfills her <a href=\"https:\/\/www.shortform.com\/blog\/job-role-vs-job-description\/\">job description<\/a>, the employer promises a steady paycheck\u2014a long-term commitment to help the employee get a place to live and food to eat. Compare this to an independent contractor or freelancer, whose future income is never assured.<\/p>\n\n\n\n<p>This security is the first benefit that the employee has to lose\u2014the form that her skin in the company\u2019s game takes. An employee can always be fired, cutting off that steady paycheck, and the fear of losing it ensures that employees are dependable.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Is Job Security Dead?<\/strong><br><br>Some experts have asserted that job security <a href=\"https:\/\/www.forbes.com\/sites\/lizryan\/2017\/05\/23\/job-security-is-disappearing-what-does-it-mean-for-you\/?sh=6466375a2173\">has become a thing of the past<\/a>. Highly competitive and rapidly changing industries mean that companies no longer need to offer the long-term job security typical for most of the 20th century. As a result, employees are advised to <a href=\"https:\/\/www.businessinsider.com\/job-security-is-dead-now-what-2012-11\">prepare to pivot<\/a>\u2014attain valuable skills, don\u2019t be shy about promoting yourself, and always keep an eye out for other opportunities.<br><br>Taleb mildly disparages the idea of working on yourself in order to appear employable. In his view, the need to maintain an employable image limits your freedom more than simply having a job does\u2014you\u2019re no longer trying to just keep one company happy, but <em>every<\/em> company happy. He would prefer that you focus on putting your \u201cSoul in the Game\u201d and do good regardless of the incentives.<br><br>Taleb\u2019s opinions aside, even if long-term job security is becoming obsolete, employment certainly isn\u2019t. In most cases, even short-term job security is more attractive than freelance work.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Secondly, employers give their employees benefits and perks that make the idea of getting fired even more unattractive. Standard benefits like health insurance are obviously important to employees, but they may also find themselves hooked on luxuries like a company car, expensive business trips, or a workplace fitness center.<\/p>\n\n\n\n<p>(Shortform note: Most of the time, humans tend to normalize to a consistent baseline of happiness regardless of their external circumstances, a phenomenon psychologists have termed \u201chedonic adaptation.\u201d People with cushy perks at work aren\u2019t significantly happier than those without them, yet they assume they\u2019d be much less happy without them. You should <a href=\"https:\/\/www.verywellmind.com\/hedonic-adaptation-4156926\">take steps to avoid falling into this trap<\/a>: pursue time in the <a href=\"https:\/\/www.shortform.com\/blog\/flow-state-complete-guide\/\">flow state<\/a>, rotate pleasures in your life to keep them feeling new, and spend some time helping others.)<\/p>\n\n\n\n<p>Finally, to many employees, their relationship to the company is a source of fulfillment and a core part of their personal identity. This is another part of their skin in the company\u2019s game\u2014if an employee loses her job, she also loses the identity that gives her life meaning. Imagine a workaholic lawyer who gets disbarred. The idea of being a lawyer gave her life so much direction and meaning that without it, she doesn\u2019t know what to do. Sometimes, employers even encourage this\u2014if an employee defines herself by her work, she is more likely to prioritize good work and be dependable.<\/p>\n\n\n\n<p>Additionally, long-term employees often build their social lives around those they work with\u2014yet another benefit they have to lose if they\u2019re fired.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Diversify Your Identity<\/strong><br><br>How can you avoid investing too much of yourself into your job? Author Mark Manson recommends that you develop a diverse identity: Define yourself according to multiple different values. We each assess our own self-worth in different ways\u2014some people are proud of being successful at work, while others are more proud of being well-liked by friends, or their faithfulness to a religious code. <br><br>Manson argues that the healthiest way to live is to invest time and emotion into multiple roles you play in life. Don\u2019t be only a good worker, but also a good parent, a good friend, a good artist. Pursue a greater variety of interests and allow yourself to care deeply about all of them. This way, if you get fired, you won\u2019t collapse into <a href=\"https:\/\/www.shortform.com\/blog\/define-identity-crisis\/\">an identity crisis<\/a> or depression\u2014your life will still be rich with meaning. You\u2019ll be less afraid of losing your job and retain more of the freedom sacrificed in employment.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Corporate Culture: Another Way Employees Lose Their Freedom<\/strong><\/h4>\n\n\n\n<p>Not only are employees expected to fulfill their job descriptions, they are also expected to do so in a certain way, further limiting their freedom.<\/p>\n\n\n\n<p>During long-term employment, employees adapt to a specific corporate culture. They begin to obey a set of manners and customs that are specific to the job\u2014for example, wearing a tie to work, acting respectfully and professionally in meetings. Employees are also motivated to maintain a good reputation among their coworkers. These behavioral limitations are a large part of the freedom given up by employees.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Corporate culture is not always a bad thing\u2014its \u201climitations&#8221; can sometimes contribute to personal evolution. <a href=\"https:\/\/www.shortform.com\/app\/book\/principles-life-and-work\">Hedge fund manager Ray Dalio\u2019s <em>Principles<\/em><\/a> states that this kind of culture is vitally necessary in any ambitious organization. Dalio requires his employees to comply with a specific culture designed to foster productivity and fulfilling working relationships\u2014the cornerstones of which are <a href=\"https:\/\/www.shortform.com\/blog\/radical-transparency\/\">radical transparency<\/a> and radical honesty. Anyone who can\u2019t adapt to this tightly optimized work culture is asked to leave the company. As Dalio puts it, it\u2019s \u201ca family business in which family members have to perform excellently or be cut.\u201d While this sounds harsh, it ensures that the remaining team members can be proud that they\u2019re performing at their best.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>The Exception: Employees With Freedom<\/strong><\/h4>\n\n\n\n<p>Taleb highlights a unique group of employees that are able to transcend these limits on their freedom. <strong>Those who are able to visibly provide enough value to the company that they are <\/strong><strong><em>unable to be replaced<\/em><\/strong><strong> can regain some of their \u201cfreedom\u201d as long as they remain valuable.<\/strong><\/p>\n\n\n\n<p>This special group of employees\u2014\u201cwolves,\u201d as Taleb calls them\u2014are \u201cfreer\u201d than the typical employee, with fewer restrictions on their behavior. <strong>This is because they bear more of their own risks.<\/strong><\/p>\n\n\n\n<p>These employees know that if they produce good enough results, they\u2019ll never be fired, so they don\u2019t care about their image or reputation. They ignore dress codes, curse and swear on the job, and take four-hour lunch breaks, behaving as erratically as they\u2019d like. However, by refusing to mold to the corporate culture, they risk being fired if they ever become less productive. <strong>They willingly take on greater risk in order to have more freedom.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>When High Performers Need to Be Fired<\/strong><br><br>Entrepreneur Gary Vaynerchuk argues that these high-performing wildcards <a href=\"https:\/\/www.garyvaynerchuk.com\/firing-employees-who-are-talented-but-toxic\/\">may need to be fired regardless of how much money they\u2019re making<\/a>. In Vaynerchuk\u2019s eyes, a <a href=\"https:\/\/www.shortform.com\/blog\/how-to-create-a-positive-work-culture\/\">positive work culture<\/a> is priceless in the long run. \u201cToxic\u201d employees that put their coworkers in a bad mood are slowing down productivity in subtle ways. Time spent worrying about office politics or pacifying a nasty communicator is time that could be spent getting things done. Likewise, employees with below-average sales numbers or other forms of trackable productivity may be making work a brighter place, paying for themselves by making the most productive employees happier to be at work. Emotionally <a href=\"https:\/\/www.shortform.com\/blog\/healthy-work-culture\/\">healthy work culture<\/a> is a valuable asset, and it\u2019s worth protecting.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>How to Approach Freedom in Our Lives<\/strong><\/h4>\n\n\n\n<p>Taleb doesn\u2019t frame \u201cfreedom\u201d as an absolute good. There are pros and cons to how much \u201cfreedom\u201d you have\u2014as we\u2019ve discussed, <strong>the more freedom you have, the more risks you embrace<\/strong>. It\u2019s up to each of us to decide for ourselves how much freedom and risk we want and strike an appropriate balance.<\/p>\n\n\n\n<p>The majority of first-world citizens are employees\u2014they have chosen to limit their own freedom for the rewards described above: job security, benefits, and a sense of personal identity. At the same time, there\u2019s nothing stopping us from quitting our job and making a living independent of any existing organization. Many people do\u2014freelancers, entrepreneurs, and even hermits living off the land. A free country enables us to choose how free we want to be.<\/p>\n\n\n\n<p>Regardless of what we decide, Taleb cautions us to be aware of how much freedom we have and what risks we\u2019re taking to have it. If you act too boldly and don\u2019t have the freedom to do so, you will lose what you have. A salesman who overestimates his value to the company (and consequently, his freedom) and keeps skipping meetings will eventually be fired. Alternatively, if you feel like you lack freedom in your life, you could try taking more risks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How much does your job limit your freedom? Apart from freedom, what other sacrifices do you have to make for the security your job provides? In his book Skin in the Game, Nassim Taleb argues that employment is a mutually beneficial agreement in which employees are trading freedom for security to a company that, in exchange, bears some of their personal risks. In Taleb&#8217;s words, employees put their skin in the company\u2019s game. In this article, we&#8217;ll discuss the risk-freedom trade-off made by employees, detailing the benefits employees receive from employers and the ways in which their freedom is limited.<\/p>\n","protected":false},"author":7,"featured_media":43638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,24,30],"tags":[529],"class_list":["post-53105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-philosophy","category-society","category-work","tag-skin-in-the-game","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Trading Freedom for Security Is Fair Game - Shortform Books<\/title>\n<meta name=\"description\" content=\"According to Nassim Taleb, employment is a mutually beneficial agreement in which employees are trading freedom for security. Read more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/trading-freedom-for-security\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trading Freedom for Security Is Fair Game\" \/>\n<meta property=\"og:description\" content=\"According to Nassim Taleb, employment is a mutually beneficial agreement in which employees are trading freedom for security. Read more.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/trading-freedom-for-security\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2021-11-16T19:17:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-11-20T18:58:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2021\/07\/shirt-blue-collar-worker-uniform.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Darya Sinusoid\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Darya Sinusoid\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/trading-freedom-for-security\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/trading-freedom-for-security\/\"},\"author\":{\"name\":\"Darya Sinusoid\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/0421cce75bc249b11e2517b3a91f9c46\"},\"headline\":\"Trading Freedom for Security Is Fair Game\",\"datePublished\":\"2021-11-16T19:17:00+00:00\",\"dateModified\":\"2021-11-20T18:58:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/trading-freedom-for-security\/\"},\"wordCount\":1912,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/trading-freedom-for-security\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/07\/shirt-blue-collar-worker-uniform.jpg\",\"keywords\":[\"Skin in the Game\"],\"articleSection\":[\"Philosophy\",\"Society\",\"Work\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/trading-freedom-for-security\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/trading-freedom-for-security\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/trading-freedom-for-security\/\",\"name\":\"Trading Freedom for Security Is Fair Game - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/trading-freedom-for-security\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/trading-freedom-for-security\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/07\/shirt-blue-collar-worker-uniform.jpg\",\"datePublished\":\"2021-11-16T19:17:00+00:00\",\"dateModified\":\"2021-11-20T18:58:19+00:00\",\"description\":\"According to Nassim Taleb, employment is a mutually beneficial agreement in which employees are trading freedom for security. 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