During fears of a recession and job insecurity, experts say it's time for companies to establish a ... [+]
After Russia’s attack on Ukraine, there are rumblings of another World War. Recent research reports rising inflation fears and that recession worries on the upswing. Unemployment, the hiring crisis, shrinking financial resources and a questionable job future is causing overwhelming uncertainty and work stress in epidemic proportions. Plus, many of us have our individual uncertainties that instantly arouse fight-or-flight reactions. Will I get hired for the position? Will I get a good enough raise? Will my colleagues like my presentation? Can I find a job that I really like?
‘The Great Apprehension’
Now that the Great Resignation is in the rear-view mirror, it gives rise to The Great Apprehension—where many American workers are hoping for the best but planning for the worst. It brings to light a widespread sense of job insecurity. Nearly 80% of the American workforce fears for their jobs amid a potential looming recession, according to an Insight Global national survey. The livelihoods and mental health of millions of hard-working people are at risk, as the government predicts 1.5 million Americans will lose their jobs by the end of 2023. As a result, 78% live in constant fear of losing their job and not being able to pay their bills. And rightly so as 87% of businesses are likely to lay off staff in recession, while another 85% plan a hiring freeze, making finding a new job close to impossible.
The Insight Global survey of over 1,000 American workers found growing concerns among full-time employees at all levels about job security, financial preparedness and communication transparency from company leaders. Here are the key findings from the survey:
- 78% of employees expressed worry about losing their job if there is a recession, with almost a quarter (23%) of American workers indicating they are extremely worried about losing their jobs.
- Managers (49%) more often than non-management employees (34%) indicated higher levels of anxiety regarding losing their job if there is a recession.
- 56% of American workers say they don't feel financially prepared for a recession or say they don't know how they would prepare for a recession, with women feeling the most unprepared at 64%.
Staying Out Of The Staff Scrapheap
“Recent weeks have seen the world’s biggest companies slash their staff numbers—now, even working for a multi-billion dollar company does not offer job security,” says Roman Peskin, co-founder and CEO of ELVTR. “The reality is that almost every company will have tough decisions to make, as 87% of managers are likely to make cuts should a recession hit. For workers, avoiding ending up on the scrapheap will be a case of who you know, what you offer, where you aspire to be and how much you want it.” Peskin shared with me five essential tips to protect your career and bullet-proof your mental health in a bad economy:
1. Make a five-year plan. Think of your career as a project—to get it done successfully, you’ll need a plan. Consider where you want to be in five years and set a goal based on your priorities using the SMART methodology (Specific, Measurable, Attainable, Relevant, and Timely)—and no, simply ‘becoming rich and successful’ is not a goal. Break this down into achievable milestones, set reasonable deadlines, then analyze the challenges holding you back and the knowledge you require to overcome them. Once you know what you’re aiming for, it’s just a matter of keeping track of your progress and staying focused on achieving your career desires.
2. Don’t stop learning. These days, skills expire faster than fresh milk. Most of the skills that are in high demand today didn’t even exist a decade ago, so forget about the 10,000-hour rule. Today, the ability to learn fast is the most competitive skill. Seek out employability-boosting opportunities, take on new roles and responsibilities, attend development programs and find yourself a mentor. Every new skill is a step towards that recession-proof career—often, simply retraining in your own field could grow your earnings by up to 50%.
3. Invest in your network. Your network is your net worth, and it’s worth investing in. A strong network offers access to fresh knowledge, ideas and opportunities—and the higher up the corporate ladder your connections are, the more there is to gain. If you’re struggling to grow your network, stay active on social media by sharing your achievements and expertise—getting noticed has never been easier, thanks to the power of socials. Attend networking events and conferences. Start local and work your way up as your industry standing grows. Don’t forget networking is a two-way street. Offer value to those you meet, show genuine interest and don’t expect too much.
4. Work on your soft skills. Only 15% of professional success results from technical proficiency and knowledge. The rest comes down to soft skills. These include communication, customer service, time and project management, analytical thinking, independent working and flexibility. And to cope with today’s challenges, in 2023, employers will also be looking for skills that help thrive in the remote work era, navigate the growing gig economy and excel during a recession.
5. Know your employer. Multi-billion dollar companies lay off employees all the time—just look at Twitter and Meta—so don’t assume share price equals job stability. When applying for a job, do your research. Find out how the company is funded, check staff and customer reviews and don’t be afraid to raise questions about long-term strategy during your interview. After all, you have every right to assess whether the role is worth dedicating your time and energy towards! Not only will this confirm whether an opportunity is worth pursuing, but it will also show your interest in helping the business grow and make you stand out amongst those who are simply there to pick up a paycheck.
A Final Warning
"As we're seeing in the headlines, even major companies that have experienced astronomical growth over the last several years are not immune to financial challenges," says Bert Bean, CEO of Insight Global. "If a recession strikes, I'd hate to see that result in more layoffs. If your company hasn't established a recession plan yet, do it now, communicate it with your employees and start acting on it."
