Loyalty - MAC077

My dad worked at the same company from when he was in his early 20s until he retired -- with a pension.  These days, that is a rare event.  Companies are driven more by the demands of shareholders to deliver ever increasing profit margins rather than to have any level of loyalty to their employees.  With more and more executive compensation tied to stock grants and stock options, they are actually incentivized to perpetuate this drive for profit, so don't expect company loyalty to change any time soon.

 

In today's world, if you want the company to have any sort of loyalty towards you, it all comes down to the value that you provide to the company.  It's a harsh reality, but it's the only thing that can provide you with any level of protection when companies are downsizing.  But it's very much a "what have you done for me lately" situation.  You may have saved the company millions of dollars three years ago, but if you aren't actively contributing more to the bottom line, there will be no loyalty.

 

In spite of the lack of loyalty towards you, what of your loyalty to the company?  Obviously, there are legal ramifications if you were to take trade secrets and share them with the company's biggest competitor, so I'm not advocating any such action.  But, I will recommend that you focus on YOUR needs over those of the company.  You may have a family that you support or you may be looking to drive your career a certain direction.  Given the current climate, you might want to prioritize those things over working nights and weekends for months on end.

 

Layoffs are going to happen……are happening…..across every industry right now.  This week, I'd like to take a deeper look at what you can do to protect yourself whether you are on "the list" or not.

 

Understand what makes your company unique and align yourself with work that supports it.  If the primary business of the company is to sell "widgets" is the work you do directly involved in the creation or selling of those widgets?  If your department is considered "overhead", you are not in alignment with the company's key differentiators.  Being closer to these core business activities doesn't guarantee anything, but they are usually less impacted than other departments.

 

Listen to what executives are saying.  Even if you aren't "in the know" in terms of what areas will be impacted by a layoff, there are often signs.  It is very rare for a layoff to happen out of the blue.  Each quarter, when earnings are announced, consider how the company performed against their targets.  The most important is Profit Margin.  Your company may have had record revenue numbers, but if that is accompanied by higher than normal expenses, the company may have missed the expected profit margin targets.  When the quarterly numbers are announced, pay attention to where the executives talk about tackling the problem.  Are they expecting an increase in sales (leading to more revenue) or are they talking about managing expenses?

 

Focus on YOU.  As a listener of this podcast, you've already taken steps to improve yourself when it comes to career.  You have an IDP.  You've built a strong network.  You've taken steps to ensure you have a good work / life balance.  Beyond those long-term activities, you should also take some steps with a shorter term focus.

 

• Invest in your career.  You should always be prepared to invest your own money in your career.  Consider hiring a career coach to help you navigate the changing conditions at work.  Pay for training when it will set you apart from everyone else because training budgets are usually one of the first cuts made by companies.
• Keep an eye on the market.  You should always keep your resume updated and periodically look at what positions are open.  If something comes open that matches what you are looking for, don't feel guilty about applying.
• Diversify your income.  For most people, their income comes solely from their job.  However, this leaves you open to a lot of risk when the company you work for decides that you or your team are no longer part of their future direction.  When it comes to the stock market, a good strategy is to diversify your portfolio and the same adage hold true when it comes to your income.  Consider starting some sort of side hustle or look for freelance opportunities.  In my case, I have a day job, but I also have a side business, a podcast, and I do career coaching.  Other people receive income from rental properties.

 

If you're looking for takeaways from today's episode, I'm going to assign you some homework.

1. Update your resume.  Ideally several times per year.  But do it now because you never know when you will need it.
2. Review the most recent quarterly earnings report from your company's leaders.  How does their message affect you personally.
3. Brainstorm five different alternative sources of income that you could add.

 

A career coach can help you navigate these trying times.  If you need a career coach, reach out to me via the  Contact Form at ManagingACareer.com (https://www.managingacareer.com/contact/).  I'll schedule an introductory session where we can talk about your career goals and determine if we would be a good fit for coaching.  If we are, we can arrange regular sessions to help you put your career on the fast track to advancement.