KEY POINTS:
Business doesn't grind to a standstill in a downturn and people will still move jobs. But the big bad R word (recession) is upon us and employees need to consider the potential negative consequences of switching employers more closely than they would in buoyant times.
There isn't a
simple yes or no answer to the question of whether it's a good idea to change jobs in a recession. People will move or retire and there will be vacancies. Some industries are little affected by a downturn such as government jobs, the health and education services.
Recessions and employment are nothing new to Renny Hayes, national sales manager at RetailWorld. This is the fourth he has experienced since he started working in the recruitment field. And the other three were in the UK, where the economy sunk to lower levels than we experienced here in New Zealand.
Hayes says that when looking to move in a downturn it's important to remember that:
* Good roles will still be competitively fought over.
* Presentation is even more important. "In a flying jobs market, you can write your CV on the back of a lolly wrapper; in a downturn it needs to stand out more from the pile, for the right reasons."
* You have to "ask not what your future employer can do for you, but what you can do for your future employer".
One thing Hayes has noted from previous recessions is that there are skills to be learned in a downturn and there are few people equipped to teach them. "Find one, and those lessons will reap huge dividends when markets pick up."
Common reasons for changing jobs, says Hayes, regardless of where we are in the economic cycle are:
* Moving locations.
* Loathing your boss, the company, its products, ethics or just the wallpaper.
* Being "let go", made redundant or sacked.
* Being so hungry for progress that you can't wait anymore.
These are all good reasons to consider moving. What can't be justified is jumping ship due to minor disagreements with your boss or co-workers or having mini-hissy fits because you have grandiose delusions of your own self-importance. Nor is a negligible wage increase worth moving for.
Sticking your head down and bum up and making yourself indispensable in your old or new role is a better idea if you want to survive and prosper in a recession.
The question of moving jobs is most difficult for Generation Y workers, who have only known the good times. It can be an enormous shock if your employer sheds workers - especially if you are one of them.
The old adage about the grass being greener on the other side applies to employment. Employees often move and then find that they're not better off. In fact they may be worse off and for some people it's a better strategy to ride out the bad times with your current employer.
One huge risk when switching jobs at any time - but especially in a recession - is that the new employer will need to downsize and your head will be on the block.
Some employment agreements have last in first out clauses, although that is changing. In financial services companies, for example, says Andrew Cassidy, general secretary at Finsec, most redundancy selections are made on the basis of performance rather than length of service.
If you'd been in your job for a while you may be giving up the entitlement to redundancy payments if you leave. Cassidy adds that there are other benefits to be taken into consideration such as company superannuation - a big thing in the banking sector.
In downturns, companies can't afford to make mistakes with new workers. In better times a new employee will be given six months or a year to reach their goals. In recessions new employees may be expected to hit the ground running. If you're not good at that, then it's worth considering whether you should stay or go.
Recessions are all "horrible, dull and painful", says Hayes. "But they all pass eventually and they do have a cleansing effect on companies and individuals."
In fact they can be the making of an employee who has focus and direction.
"Surprisingly, there are probably more people than you think who are using the downturn to look for progression/new skills and additional responsibilities. Some choose to move to a sector with more activity, such as from real estate to dairy farming. Others choose to move to companies with better management and leadership. Think of it as changing lanes on a motorway."
But, he adds, you have to look very carefully at the business you're thinking of leaving and the new business. "Like a blocked lane on a motorway. It could be a short jam or a long one. Changing lanes doesn't always make you get to your destination quicker."
When times are bad and jobs are few some people choose to start contracting. The logic is if you can survive a recession, you'll be well placed to take advantage of the upturn when it comes, says Lee Brodie, director of Career Dynamics, who started her own business during the recession during the 1990s.
There may be fewer jobs, yet there is still a skills shortage in New Zealand, which buffers employees from the worst of a bad market.
Recessions are a time to take your transferable skills and use them to move, says Brodie.
For example, adds Cassidy, whilst retail banking is suffering at the moment thanks to the worldwide credit crunch, rural banking is doing very well indeed. Bank workers who want to recession proof themselves might look to move internally.
In a recession it's essential to look very closely at both the company you're leaving and the one you're going to. If the company you're moving to is in trouble, or could get into trouble, then you may want to stay put, no matter what the opportunities.
To find this out you need to do a bit of sleuthing.
"Due diligence is even more important in a downturn," says Hayes. "Is the business you're thinking of joining got the right foundations, the right funding, the right management and outlook?"
See what investment analysts have to say about the industry and if the company in question is a large one.
If it's listed on the NZX or other stock exchanges there is a requirement for it to disclose all sorts of information, which could make your job easier.
Cassidy says job hunters can do an awful lot of research about companies on the internet. They should also talk to people in a target employer and get a feel for that company's future. They could also talk to their union.
Also think of the exchange rate, says Brodie. Is the New Zealand dollar likely to rise or fall? If it's rising, it benefits importers and if it's falling, exporting companies will be happy.
Hayes says the questions to ask yourself about the new company and your old one include:
* Is the business you're with doing the right things to cope with a downturn - trimming fat, excess cost and superfluous staff?
* Is it communicating with employees properly?
* Is it adjusting to change with improved practices and a refocus on customers?
* Or is it panicking and sinking?
If you have no choice but to go, then recessions are times when people take transitional steps, says Brodie. They may do something right off the radar such as work at a ski-field for the season. "This will give you time to do some thinking," she says. Or they may decide to retrain. Typically university rolls rise during recessions.
"People think: 'Oh well, I am not going to get a job particularly easily, I have been thinking of going back to school for a while, maybe it is a good time for me to re-skill'," she says.
Hayes says:
* If you want a career and you've stopped learning from the one you're in, then it's probably time to move on.
* If you just want a job and you've stopped enjoying the one you have, then it's probably time to move on.
* Or if you're Gen Y, you'll probably think it's time to move on anyway, regardless of the economic climate.
DOWNTURN UPSIDE
* Job opportunities still arise in recessions.
* Improve your transferable skills.
* If you take a new job, make yourself indispensable fast.
* Give a thought for your long-service benefits before jumping ship.
