Employees are getting concerned about the uncertain state of the workplace as 2024 kicks in, where some take small steps to "cushion" their careers, making it easier to find another job if their current role becomes redundant.
Career "Cushioning" Explained
According to Taylor Queen, HR adviser with Insperity in Orlando, Florida, "career cushioning" happens when employees proactively attend networking events, update resumes and LinkedIn profiles, and potentially apply for jobs to secure their careers if their roles become redundant.
Career Cushioning is about keeping options when you're unhappy at your current job. It involves preparing for a potential layoff by upskilling, exploring jobs in financially stable companies, or starting a side hustle. Simply put, it's a backup plan in case of job loss.
Why is it Becoming a Trend?
Even with a tight labor market, the LinkedIn Confidence Index revealed in October 2022 that less than half of employees felt prepared for an economic downturn. The frequency of career cushioning varies by industry, with some sectors becoming more susceptible to layoffs.
While not a new trend, the concept has been present in some form. It is gaining traction now due to mass layoffs, economic downturns, and global political uncertainty, which creates a sense of insecurity among employees in various sectors, prompting them to have a backup plan ready.
Many startups rapidly hired during the pandemic now face challenges in layoffs due to unsustainable and unplanned growth. Sumit Sabharwal, CEO of TeamLease HRtech, notes that while precautionary measures during job uncertainty are not new, the current trend where employees openly discuss and share experiences collectively is a "new phenomenon."
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The importance of career cushioning
The pandemic highlighted jobs' inherent unpredictability, leading people to explore unconventional ways to secure financial stability. Vijay Yalamanchili, CEO of Keka, who has been preaching the importance of upskilling for 15-20 years, emphasizes the importance of having a backup plan to fall back on when things go wrong. Like GenZ, Yalamanchili believes in the idea of not being confined to a single role and encourages individuals to recognize the value of diversifying their skills.
The increased technology usage has made it easier for people to learn new skills and create a career cushion during the pandemic that allows them to maintain a consistent standard of living and save for the future.
What is the Right Time to Build This?
According to Yalamanchili, career cushioning is an ongoing and relevant strategy in today's environment. It provides an alternative route for those unhappy with their current career path and a valuable option for individuals looking to explore a new direction after upskilling.
You should always be prepared for the worst, regardless of economic conditions. If you sense that your organization is financially unstable and might consider layoffs, Sabharwal suggested it's the right time to begin your career cushioning efforts.
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