How to Recession-Proof — Part 1 (Your Career)

Sadly, we could be on the precipice of a whole lot more pain. At least that’s what we keep being told.

We’re heading for a recession, if we’re not in one already.

For context, a recession is defined by the National Bureau of Economic Research (NBER) as “a significant decline in activity spread across the economy, lasting more than a few months.” And this period of economic weakness may last for more than just months. It could be years.

That may sound like hyperbole. But what the pandemic has taught us is that random stuff happens when we’re not prepared. Really random stuff. That might not sound like the most scientific of explanations. But the more orderly we assume the world to be, the more likely such events can overwhelm us.

So how should we approach it?

Firstly, we need to accept reality. No head in the sand stuff. Recessions are normal. They come in all shapes and sizes. They can be unpleasant. They can even be painful. But they are a normal part of an economic cycle.

With this in mind, don’t let a recession blindside you. You have to be ready and proactive. You must stay aware and conscious of your environment. And be intentional. That’s a theme that runs through all of these musings.

Whether Charles Darwin actually said it or not, the following quote rings true:

“It is not the strongest of the species that survives, nor the most intelligent. It is the one most adaptable to change”.

Essentially, you’ll need a strategy to help you navigate a recession. Don’t assume there’s one framework to rule them all. Assume the need to observe, apply and iterate your plan if necessary.

I’m going to start with broad guiding principles to help shape a holistic approach, before drilling down into more specifics in later articles. With a career that’s spanned life/career coach, resume writer and investment advisor, I’ve worn a few hats that feel relevant right now.

This series will touch on a range of areas: financial, emotional, and relational.

For Part 1 of this series, I’ll focus on work.

Shaping your work

The “Great Resignation” has been a fascinating social experiment.

It’s a world of voluntarily leaving jobs in search of something better (in life, in salary, in opportunity). The power is in the hands of employees. There are so many opportunities. They can move from one role to the next.

That’s the narrative anyway. But this won’t last forever. The pendulum will swing back. It always does.

Consider a recessionary environment where, well, you didn’t depart by choice. At some point, that’s going to be the reality for many thousands, even millions, around the world. The “Great Redundancy” doesn’t quite have the same poetry to it, does it?

So how should you prepare yourself?

Control the controllable

Look to control the controllable. There’s not much you can do about the economy or the company you work for going bankrupt. Accept that chaos is a part of life.

But try to make the odds forever in your favor, as the saying goes.

As a starting point, at the very least be a good employee. That may sound obvious. But when the first round of layoffs comes, make sure that if your company is looking to cut based on poor performance, you’re not on the list.

You can control how you show up at work, how you engage with your bosses and peers, and how you build your personal brand. It’s one way of “de-risking” yourself.

Another concept to think about is if you lost your job tomorrow, how bad would your financial situation be?

Part of the de-risking process relates to your personal finances, which I’ll touch on in a later article. But it’s also about working to ensure work and finances aren’t too entwined.

Here’s a story. I had a friend that had a decent role for a major UK bank. Years earlier he’d also met his wife there. They had their mortgage with the bank. And for well over a decade, they plowed every annual bonus into the company’s shares at a discounted price. Hell, they even used after-tax salary to buy more on top of that. It made a lot of sense. Until it didn’t.

During the great financial crisis, the bank in question imploded and nearly went out of business. It needed a government bailout. The share price collapsed. His wife survived the redundancy cull. My friend wasn’t so lucky.

Suffice to say, their financial plan was decimated. They had all their eggs (careers, salaries, mortgage, savings, retirement plans) in one basket (the same bank).

That’s an extreme example. But you may well have a lesser version you hadn’t considered before. It’s fine until it isn’t. Reducing concentration risk is just one example of a de-risking process that’s useful before an economic downturn.

Upskill where you can

Now, what else can we do to be ready for a major change in the job environment?

Make sure you are still relevant. Relevant to the company you work for, relevant to the industry you’re in, relevant to the market economy.

That partly means staying current with the skills required in your role and sector. That’s vital in a recession. Don’t be that analog guy in a digital world.

If your work offers learning opportunities, take them up. They’re the ones paying. Alternatively, there are thousands of free and cheap online courses on sites like Udemy, Coursera and edX if you’re ready to learn. And, of course, there’s plenty of learning to be had on YouTube.

What should you learn? If you want to be very commercial about it in a recessionary environment, browse current job postings in your field. See what skills and qualifications companies are asking for. If you haven’t been in the job market for a while, chances are you could be missing something.

On top of that, soft skills will always have a place, recession or not. Presentation skills, the art of selling, the ability to negotiate. All relevant. There’s no harm in upgrading yourself there. I’ve found Toastmasters to be a great low-risk place to practice public speaking and improve communication skills.

There’s also nothing wrong with learning something new for the sheer hell of it. At the very least, it can expand the way you see the world. Apple founder Steve Jobs studied calligraphy in college, which he later credited to be the inspiration for the company’s typography.

No knowledge is wasted if you’re intentional about it.

Network for current and future roles

Don’t forget to keep building your network, both online and in person. Your network is your net worth, and all that.

Maybe connecting professionally with strangers or vague connections is your idea of hell. Unfortunately, that’s the world we live in. It’s even more important in a recession.

Start with people in your existing company. Network internally. And with ex-colleagues. That’s the easy bit.

But don’t be afraid to reach out to people in other fields or those at different stages in their careers. Don’t feel awkward connecting with someone decades younger or older than you. This is especially important if you get laid off and your career takes a non-linear path. You never know when they can be of use to you (and, just as importantly, you can be of use to them).

That means keeping your LinkedIn profile current and active and periodically reviewing your resume. These are “must haves” when it comes to marketing yourself from a career perspective.

Yes, you can have an online portfolio, personal website, Carrd account, and so on. But make sure the basics are in place as well. You need to be able to create a narrative to represent your career. And an up-to-date resume and LinkedIn profile are good starting points to document it.

I used to have my resume saved as “Jan.doc” because, at the very least, I’d update it every January. In the current climate, I would suggest reviewing it more regularly.

Pivot into another career

How should you adapt if you’re in a company that you expect to be devasted by a recession? What if you’re forced to leave your field entirely?

The simple answer is to start from where you are. There’s nothing wrong with reinvention. We should all experiment. But you need to know your circle of competence and build beyond there.

There’s no easy fix. Transitioning to an entirely new area gets harder when jobs are fewer and companies are less inclined to take unconventional routes.

Let’s use a simple example. Suppose you’re a marketing manager at a bank and want to become a radio presenter. You’ve always thought you would be good. Your mother says you’ve got a fantastic voice. You’ve even done some training on the side, which you’ve put on your resume.

Well, look at it from the perspective of a potential employer. You are a higher risk. You may well be cheaper in theory, but is it worth it?

The cost of training you, getting comfortable with your pace of learning, and getting you embedded might not be worth it. Plus, in a down market, there may be plenty of properly qualified candidates.

Now, shifting from marketing manager to social media manager would look reasonable. But radio presenter? The point is it’s easier for potential employers to conceptualize if your target role feels like a natural progression on a resume rather than a leap of faith.

But what if you target a role as a marketing manager at a radio station? Ok, it’s not your ultimate goal, but it gets you into the right working environment to learn and network. You’re one step — still a big step — away from your career change.

Adapt to job conditions

One way that companies adapt to recessions is to find ways to become more efficient and cut costs. That means the rise of technology and automation. That also means a lot of job losses.

If technology has never been your thing or you’re not a digital native, that could bring challenges. As nifty as you might be on your Casio calculator, you’re not going to outsmart artificial intelligence.

So how can you compete? Learn to work with technology. Don’t fight against it. Learn skills relevant to the technology around you. You don’t have to know everything. Just what’s relevant to the changes in your industry.

And keep in mind artificial intelligence hasn’t got the hang of empathy, connection, and all those things that make us wonderfully human. I wouldn’t rely on a computer for a hug or a shoulder to cry on. A coach? Yes. In areas where humanity trumps technology you’ll always have the edge. Just learn how to use technology for the rest.

You should also reframe how you view full-time employment in a recession. Consider yourself as self-employed (even if you’re not), willing to view the world of work from a project and independent contractor perspective. That way you can mentally adjust to a work environment that’s both less stable but equally dynamic.

Recession or not, people will always have needs that have to be met. Those are pain points that don’t diminish with economic downturns, and which technology can’t deliver on. There will always be jobs and opportunities there.

As a simple framework, consider Abraham Maslow’s famous hierarchy of needs. His theory, first laid out in 1943, stated humans require certain “needs” in life to be met in a pyramid hierarchical form of importance. At the base are “physiological” needs, with “safety” needs above them. These two levels are basic needs — the first that need to be addressed. Next, we have “belongingness and love” needs, followed by “esteem” and finally “self-actualization”.

For now, we’ll address the two basic levels. These are fundamental to existence. As such, there are always pain points that products and services seek to address. There will always be a market.

Whether working for an organization or for yourself, there will be opportunities in a recession. So think about what job roles could come out of these areas, what skills you already have to do them, and what skills you could learn to better meet them.

Maybe this isn’t the most glamorous space. Maybe it’s not your “passion”. Just use a bit of imagination. You may be surprised by what opportunities exist in a recession.

• Physiological: Food, water, warmth (opportunities in food distribution, providing utilities)
• Safety: Security, safety (opportunities in housing, insurance, transportation)

A lot to digest

I’ll build upon a lot of these concepts in future recession-related articles. We’ve only scratched the surface. But awareness is key. Getting prepared is key. Being intentional is key.

The trouble with recessions is that human capital can dwindle if you don’t take care of it. If you’re lucky, you can offset some of that through growing financial capital. At the very least, the goal here should be to stabilize that as well.

So in Part 2, I’ll talk about money — how to make (beyond your career path), save and manage. If you want to recession-proof yourself, you’ve got to think more broadly about life.

I’m a finance guy by trade with an additional background in career and life coaching.

Essentially, I created Spiritworth with the ambitious goal to help others “raise their spirit and raise their (net and self) worth.” A bit grandiose, perhaps, but you’ve got to shoot for something.

Join me on the journey by joining as a member to support Medium writers https://medium.com/@spiritworth/membership

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