How do you confront job loss after 50?

This article was published in December 2013 issue of The Global Analyst

The world has become a shaky place – thanks to 2008 global financial crisis. Though the origin of the crisis is the USA, the collateral damage is felt all over the world leading to slower growth, lower investment, higher inflation, and higher unemployment.

Since the center of the problem was leverage (borrowing), companies resorted to wide scale restructuring to optimize their business functions and bring some order to their balance sheets. The effects of such a strategic backdrop is hiving off some business lines, selling non-core assets, reducing headcounts and rejigging the business model to prepare for a “new normal” world that is expected to produce lower growth than the past.

Hence, despite no fault of one, we may simply lose our job. However such job losses can be easily coped with if we are in the mid-twenties or thirties. The simple logic is organization structure is simply a pyramid with more people employed in the bottom of the pyramid than the top. Therefore there are more opportunities at the junior and middle level than the senior level.  Hence, job loss becomes extremely difficult to cope if you are 50+; since you will invariably be in a senior position which is where most of the optimization happens.  

Some of the immediate reaction to a job loss includes one or more of the following:

·         Beefing up your CV

·         Reaching out to friends and acquaintances

·         Reaching out to placement consultants

·         Getting active with job sites

·         Monitoring newspapers for vacancies

In my observation, I find these measures ineffective since they are more of a “reactive” response than a “proactive” response. In other words, we do all of the above post job loss or while we are serving the notice period and not before. When things go fine, we assume that it will be fine for an infinite period of time and hence the lethargy to take some proactive actions. However, corporate failures can be swift and unanticipated. What may seem like a multinational (Enron) can quickly be flamed to dust in no time due to myriad reasons.

I feel that if you have crossed 50, looking for a replacement job may actually produce sub optimal results especially if you have spent long time in your previous job. This is due to the change in the business environment that we operate in. As a response to cost management, companies resort to intelligent out sourcing of many of their non-core, and to an extent core, functions. For e.g., instead of having a 10-member HR team, the function can simply be outsourced to an HR consultant and operate the function at the cost of 2-3 members instead of 10 members. Also, in a competitive environment, companies expect more from less. Hence, it may expect existing employees to increase their contribution thereby avoiding new recruits. Such compression reduces the need to hire especially at the senior level.

Given this trend to cost effectively outsource functions/tasks/operations, it may be a good idea to flip the coin and be on the other side of the spectrum in order to convert a threat into an opportunity.

In other words, be that provider of service which will help companies optimize cost and add value. With such a paradigm, following options emerge:

1.       Consulting on a “Result” basis: It is quite tempting to start a consulting outfit (mostly with your initials as the name!) and go around shopping for assignments. To me it is the least differentiator (since there are many consultants around already) and is a sure recipe for disaster. Instead, you may want to start thinking about “ideas” that can bring about cost efficiency and profitability improvements for a sector/sectors in which you have prior experience and familiarity. Propose that idea for implementation to key players in that sector whereby compensation for your service is directly linked to the “result” rather than your time. When you flip the proposition to “result” rather than “time”, it will be music to the ears of the decision-maker sitting on the other side of the table. Often times, implementation of such ideas should normally be a group work than a standalone assignment. It may not harm to enlist other “co-workers” that can provide support to critical legs of the idea and offer that as part of the solution to improve conviction. As a consultant proposing the idea, we should be able to see the big as well as the small picture of the steps proposed.  Let us consider an example. Hospitality is a booming industry in emerging markets. However, there is a great disconnect between clients (holidayers) and service offerings due to lack of information. Most of the times, clients feel that they could have landed with a better option after signing in on the current option. This results in misplaced expectations and lack of repeat business. A business idea that carefully captures the entire value chain of a “holiday experience” of a client, and link that successfully to a business model that will produce enhanced level of satisfaction can improve the business significantly. This may require dealing with several stakeholders including travel agents, airlines, hotels, car rentals, etc. since the client (user) may need help in the entire “value chain”. Several such ideas can be debated, and structured to make a meaningful impact for the organizations. Having said this, it must also be warned that consulting may not necessarily always take off especially if it is your first experience, and you have always been on the cushy side of giving out assignments rather than receiving them.

2.       “Take it to the next level”: Not all ideas can hit the bull’s eye. As we implement, we may encounter various impediments necessitating mid-course correction. However, after a while, the idea gets perfected and is ready for commercialization on an even grander scale. This requires different skills set thinking in terms of a businessmen setting up a business. With clients already on a roll, try creating a business plan that will involve setting up an organization to handle the same idea on a larger scale with better technology and service parameters. This is how great companies were born and more importantly grew.

3.       Expand your “network” to offer ideas: Most of the time our motive to be part of a network is to receive help rather than provide them. Alternatively, create a network comprising of like-minded people that will be interested to hear ideas from you and relate that to what they are doing. In the process, the “engagement coefficient” will dramatically improve providing more opportunities in the process. LinkedIn and Facebook provide ideal platform for such ambitions.

4.       Engage in teaching or training: There is no other better way to synthesize your thoughts other than narrating your experience. Teaching provides an ideal platform for articulating and perfecting your ideas. It sharpens your skills in many ways since it requires meticulous planning, preparation and most of the time revisit to basics. All this helps in your business engagement when you engage in idea selling. Additionally, if your teaching can focus on training, it can also bring you in contact with corporate executives who may then become the key source of your business.

5.       Have effective “fill-ins”:  A day job does not provide the needed incentive to engage in other activities in which you have deep interest. This is mainly because your time has already been sold and you will just be content with monetizing your time through your job contract. On the other hand, when you are on your own, you will have plenty of spare time, especially during the initial phases. Ineffective way of using this spare time can actually have a critical impact on your motivational level. Most of the people struggle with this aspect when they are in the transition. This is due to lack of proper “fill-inns”. Fill-inns are those that can engage your time in a productive manner with the result being either money or immense satisfaction or both. Some examples of fill-inns could be stock market trading, commodity trading, engaging in your passion (music, art, collectibles), community service, religious service, shaping young minds, etc. A systematic approach to engaging with the fill-inns can provide not only money but very high satisfaction and can in turn shape your main ambition very nicely.

In conclusion, on the one hand global situation will result in tight job market. Traditional method of having a smooth successful career with retirement at 60 may already be changing. On the other hand, companies are grappling with a new paradigm that requires services to be outsourced effectively and efficiently. Connecting the dots will convert a threat into an opportunity. Also, in today’s times where human longevity has increased, it is possible to be quite active till 70. This necessitates physical fitness and mental agility. While age may tell on your body, staying young in mind can produce miracles especially if you have to work with teams comprised of young people.

I always believe that money does not cause success. It is the success that produces money. In order to be successful, the last ingredient we need is money. Hence, having sufficient savings and capital is not a prerequisite to implement any of the above. The essential ingredients that we need are ideas, confidence, clarity, purpose, goal orientation and more importantly ability to dream. None of them need money as the source.

And as a final thought, job loss is not the end of the world. Sometimes it can be a blessing in disguise for personalities that refuses to lift their head from their work little realizing that their family has nothing else but to look to him/her to spend quality time. Grab the opportunity to fulfill that part of your responsibility too.

Happy living!