Personal PEST Analysis can assist you in identifying the large-scale forces of change that might affect you, as well as identifying possible threats and opportunities.
When you recognise the big changes that are transpiring around you, you can adapt your objectives and goals to work with them rather than against them. You can adopt the new opportunities that these changes present, as well as avoid actions that have little probability of success if you recognise aspects outside your control.
PEST Analysis is often used alongside SWOT Analysis. However, the two tools
have different areas of focus. PEST Analysis looks at the “big picture” factors
that might influence your decisions, while SWOT Analysis explores these
factors at a personal level.
Benefits of a personal PEST analysis
Conducting a PEST analysis can provide you with numerous advantages. The most significant benefits include:
Improved long-term strategic planning
Increased attention to potential threats and dangers
Evaluation of how your strategy fits into the larger environment
Understanding of all the important external forces
What is a PEST analysis?
PEST stands for:
In order to perform a Personal PEST Analysis, you must examine the forces of change in each of these four key areas that are likely to have an effect on your future career choices.
By undertaking this analysis, you can gain a better insight of the “big picture” and understand the main forces that may shape your future. You can then use this knowledge to plan for future opportunities and avoid future pitfalls.
It is important to consider all the political factors that are relevant to you when you are filling out your Personal PEST Analysis. When thinking about the political factors that will impact your career objectives and goals, think about all the political trends or legislative changes that may occur.
Professionals from a variety of fields may face political and legislative or regulatory pressures; accountants and insurance agents are two examples. If this is the case for you, performing a PEST Analysis will likely be particularly beneficial.
Are there any new laws, policies, or legislation that have been introduced that might affect your job or company?
Is there a movement in the direction of regulation or deregulation?
Is government spending or taxation likely to be altered?
Will political changes harm the viability of your work, or will they provide opportunities?
What is the government's approach to corporate policy, corporate social responsibility, ecological and environmental issues, and customer protection law? What impact will this have on your profession?
When is the next local, state, or national election? Who are the leading candidates for power?
List the answers to these political factors then analyse the opportunities and threats that arise.
Economic considerations should be taken into account when conducting a Personal PEST Analysis. In particular, the economy, inflation, unemployment rates, taxation modifications, and interest rates are important to consider.
You must look at these factors from the correct perspective. For example, you may be offered a job that pays $15,000 more annually, but other PEST aspects you've identified suggest that the position will likely be extinct in two years as a result of increased competition from other corporations. Because of this, it is important to assess the economic variables in light of your own business and professional environment.
Is your country or region's economy growing or shrinking?
Is it in a recession or a boom? What's the inflation rate?
How stable is the economy? How much will it affect your job?
How will business, economic, market, and trade cycles impact your line of work and your firm?
Will your line of work be adequately compensated and fairly remunerated in the future? Does it adequately cover your living expenses?
Are wages likely to increase or decrease in your profession?
Is job security an issue?
Is globalization or off-shoring impacting your profession?
Is there a strong demand for your skills and profession?
Think about the economic variables that may impact your job. Have you noticed any opportunities? Are you aware of any dangers? After you finish this section of your Personal PEST Analysis, you may want to do further research to find out more about the precise financial and statistical economic trends that impact you. Remember to add this information to your PEST Analysis once you obtain it.
Socio-cultural factors influence people’s actions and values by shaping society’s socio-cultural trends. Lifestyle shifts, customer demographics trends, educational programmes, cultural values, and ethics are among the factors to be considered when completing this PEST Analysis quadrant.
Is it possible that certain demographic trends will impede your opportunities for professional success?
Will changing lifestyles impact your chances for professional achievement?
Will there be major events that might influence public opinion or cultural attitudes?
Have there been any significant events or will there be ones in the near future that will affect people's attitudes and behaviour?
Are certain professions more or less appealing to people due to changing preferences? And how will this affect the number of people entering and leaving your trade?
What is the population's population growth rate and age distribution? Can you predict how it will change?
Will changing generational attitudes affect your business?
It's also crucial to consider how technology might impact your profession and how it might affect your future success. You don't want to spend your time and effort on a career that will become obsolete because of technological advances. At the same time, you should realise what technologies might give you advantages in the future. Technology changes rapidly, so you should protect your profession by acquiring skills that are transferable and will stay valuable. This will keep your options open.
What new technologies are being introduced, and how will these affect your line of work?
What can you do to get involved with these emerging technologies?
While you are developing your line of work, are there any new technologies that you have access to that you can use, or that you are interested in learning more about?
What technologies become obsolete in the next five to ten years?
How will emerging technologies affect the way people work in the future (telecommuting, global teams, virtual working, etc)? Will this create any professional opportunities for you or your business?
Are there any new technologies on the horizon that could radically affect your profession or your industry?
Are there any local governments or educational institutions that focus their technological research? Can you do anything to take advantage of this?
After you've finished your Personal PEST Analysis, you can examine the opportunities and risks in more depth. This will allow you to establish a clear career strategy that utilises the elements that are most likely to have a positive impact whilst simultaneously avoiding those that are most likely to have a negative impact.
Spend 10 minutes listing the main opportunities and threats that you have identified in your personal PEST analysis.
Now list what actions you’ll take to make the most of the opportunities that you’ve identified, and how you’ll manage the threats. For example, could you start a new job, move to a new location, start a business or learn new things?
With a Personal PEST Analysis, you can learn about the political, economic, societal, and technological shifts that will most likely shape your future business and career goals. The PEST analysis can help you identify any immediate and future developments you will need to be aware of. It can also help you identify any opportunities or threats that these factors might cause. This can assist you in developing an objective and comprehensive career strategy that will maximise these new opportunities while minimising any potential issues.