5 Ways To Manage Your Career Ahead Of A Recession

If you’re an employee, chances are you’re feeling some concern about the economy and the job market. And your concerns are reasonable, given the number of companies taking action to lay off workers or freeze hiring.

But while it’s easy to let your anxiety take center stage, you can respond proactively and also protect your current position with some pragmatic choices.

Concerns Are Justified

As you consider how to react to the current context, it’s helpful to be clear about what’s going on and focus on the facts. According to a study by the Conference Board, 41% of respondents believe we’re already in a recession, and 33% believe we will be in a recession in the next six months.

Much of this belief is based on organizations which are tightening their belts. For example, 36% of people say their companies are restricting hiring to critical roles, and 22% say hiring has been frozen entirely. Another 19% report their company has taken steps to restructure, and 13% say their organization is laying people off.

A study of 4,500 people by FlexJobs reinforces concerns with 25% of people saying they’ve been laid off or know someone who has. And 18% of people have had an offer rescinded or know someone who has. According to the Conference Board research, concerns about job loss are concentrated among Millennials with 64% expressing worry compared with 46% of Gen X and 26% of Baby Boomers.

Taking Action

While it’s best to stay calm, it’s also smart to know what’s happening around you so you can respond constructively.

Focus on Your Finances

Choices about your career are closely tied to your finances and the degree to which you feel financially secure and financially flexible. Whether you’re facing a potential layoff or a job change, these experiences are woven closely with your financial position. Many people are fearful. The Conference Board found 60% are worried about a decline in the stock market. This was especially true for Baby Boomers, 71% of whom are concerned compared with 59% of Gen X and 43% of Millennials. In addition, people are also anxious about losing their jobs (42%) and the loss of health benefits (14%).

By making some changes in your investments, spending and budgeting, you can shore up your position for a shifting job market. In the Conference Board research, 66% of respondents plan to respond to economic slowdown by curtailing their spending or delaying bigger purchases (54%) like cars or houses. Many (32%) are planning to increase savings or shift their investment portfolios (19%) to reduce risk. All of these are strategies you could consider.

The bottom line: More financial freedom also gives you greater career confidence—knowing you can survive if your job is eliminated or if you want to jump to another opportunity.

Focus on Your Choices

Another key step you can take is to evaluate where you are in your career—and whether you want to dig into your current role or make a change.

In the FlexJobs study, inflation was a factor for 80% of people who reported it’s impacting their career decisions. And 73% of people said the biggest concern affecting career choices was recession. According to the Conference Board study, 40% of Baby Boomers say they’ll delay retirement if there is a recession.

Given these factors, there are three ways you can think of your choices:

• Consider how much you’d like to make a change, knowing the job market is tightening. Focus on two questions: What’s satisfying or dissatisfying in your current role? How important or impactful are those elements for you? For example, if you lack a sense of meaning in your work, and if this is having a significant effect on your motivation and happiness, it may be wise to make plans for a job search. On the other hand, if the organizational communication is sub-par, but it doesn’t have a huge effect on your day-to-day experience, your best bet may be to stay where you are.
• Consider whether something better is available. In a tighter job market, you may also have less power than you had in the past—in terms of demanding pay, benefits or even remote work. In the FlexJobs survey, 44% of people thought it would be harder to find a remote job in the coming year. They’re probably right. Greater numbers of employers are seeking to bring people back to the office at the same time more people are looking for jobs—and people are increasingly willing to take jobs which require time in the office.
• Also consider how much effort you’d like to put into a job search. In the FlexJobs survey, 62% of people didn’t feel very confident about their ability to find another job, given the market. In addition, 43% said it took them more time to find a new job than in their previous searches. Know that if you choose to make a change, there will be a fair amount of effort you’ll need to spend on searching for a new role. Factor this into your decision making.

Focus on Performance

Another way to respond to potential headwinds in your job security or career options is to perform brilliantly and bring your best. When times are tough, it’s easy to become anxious or distracted. Don’t lose your attention, and avoid getting pulled into the rumor mill. Employers value those who keep a cool head and maintain engagement, even when things are challenging.

Focus on doing great work. Focus on your customers (internal or external). Focus on your team and your colleagues, and delivering great outcomes to them. When you can maintain your motivation, it will enhance your value and your job security.

Focus on Your Network

Another smart investment of your time and energy through tough times is in your network. You may be facing concerns, but so are your friends and co-workers. Tune in, ask questions, listen and demonstrate empathy. When you focus on the community and how you can support others, it will add to your own happiness and fulfillment, and will be a benefit to the team.

In addition, renew connections in your network. When you invest in your relationships on an ongoing basis, people are more likely to be present if you need their help in testing the waters for a new opportunity or seeking a new role.

Focus on the Future

You can also manage your concerns and reduce your worry by focusing on the long view. Remind yourself there are always ebbs and flows in the economy and in any role—and you have the skills and talents to get through successfully. Focus on what you can learn as you face challenges and overcome them.

Ironically, when things are significantly disrupted, the situation can be especially rich for new possibilities. You may find yourself with severance or outplacement support to find the new job you’ve been wanting anyway. Or the company restructure may position you perfectly to take on a new role which is the perfect next step.

Resilience is about three things: knowing what’s happening, making sense of it and then responding or improvising. Stay informed, evaluate how the situation is affecting you and then be proactive with your response. Every tough situation you encounter builds your capability and your adaptability. Resilience is a muscle you can build, and focusing on your own ability to get through will help.

In Sum

You may face challenges, but you can be proactive and protective. Shore up your finances and evaluate your current role. Ensure you’re adding value to the company and community. And overall, stay optimistic. Give yourself permission for a down day now and then, but then get back up and look forward—to all that will be coming over the horizon.