Managing Your Career in Times of Change
By Beth Busch

 Think that the recent downturn in the economy won’t affect you?  Think again.  What was once just a crisis of confidence is now certifiably dangerous to business.  How will this affect you?  There are many ways, but here are three to consider:

1)      Major layoffs make the job market an “employers’ market” (vs. a “job seekers’ market”).  This means employers are in a stronger position, can pick and choose among many candidates, can offer fewer benefits and be less lenient with workplace rules.  For example, you may no longer be allowed to have blue hair or bring your dog to work

2)      When a large segment of the workforce agrees to smaller paychecks and shorter vacations, the standard throughout the industry changes.  Even if your company is doing well, this could eventually affect the amount your employer is willing to pay for someone in your position.  And workers who are unhappy about being asked to take a pay cut at a competitor, may come apply for your job.  (And accept a lower salary!)

3)      Like the embattled banks’ employees, many workers whose companies have failed saw their retirement accounts wiped out or drastically shrunk.  This often means that they won’t be able to retire when they had planned and will have to stay in the workforce longer, resulting in fewer openings for graduates and a slower climb up the corporate ladder for those in mid- and entry-level jobs.

 Sound gloomy?  Well, there’s an upside.  Companies who emerge from bankruptcy and/or accounting scandals will be stronger and employees will be smarter and more aware of their place in the workforce.  Whether you’re checking out a prospective employer or evaluating your current one, here are a few things you should consider.

1)      Take responsibility for your own situation and be aware.  Read newspapers and magazines and research companies online.  Be skeptical and seek more than one source for information.  It’s true that AIG was listed on Fortune Magazine’s list of best companies to work for recently, but it’s rare that a company goes under with no notice.  If you pay attention and seek other perspectives, chances are good that you’ll learn what you need to know about  a company

2)      Find out what the boss makes.  Twenty years ago, the average ratio of CEO salaries to the lowest-paid worker in a company in amerce was 1-to-15 (i.e. If the janitor makes $20,000/year, the top guy makes $300,000).  A recent study indicates that ratio has jumped to 1-to-500 (You do the math!)  The CEO of American Airlines tried to give top management retention bonuses while asking their flight attendants and pilots to take pay cuts back in 2003.  When this news was made public, he was forced to resign.  Apple on the other hand, pioneers of the iPod, have been widely reported to pay top dog, Steve Jobs, a $1 salary as the company was pulling itself out of the doldrums.  Of the two, which company do you feel most optimistic about?

3)      Don’t put all your eggs in one basket.  It’s good to support the company.  When it comes to your retirement account, however, it’s IMPERATIVE that you diversify.  Most financial planners recommend that you have no more than 10% of your stocks in your company.

4)      Keep your integrity.  The responsibility for maintaining ethical business practices falls to each and every employee.  If you’re asked to do something you’re uncomfortable with, document everything – what you were told to do, when the action took place and who told you to do it.  Then get an objective opinion from an outside source.  Don’t let the fear of losing your job override your sense of right and wrong.  It’s much easier to get another job than to repair a damaged reputation.