Explore: Giving Inflation ‘Time To Be Flexible’ Is in Everyone’s Best Interest — Why Recession Is Worse
Looking To Diversify in a Bear Market? Consider These 6 Alternative Investments
Inflation and volatile markets have triggered a slew of layoffs at several companies. Tech giants such as Microsoft, Google and Apple announced they were taking preventative measures by planning to slow hiring in the next year, while others, such as Netflix, announced layoffs.
Crypto companies, many of which were on a hiring spree just a few months, also announced layoffs, and Ford said it would cut 8,000 of its workers in the coming weeks, according to Bloomberg.
In such an uncertain climate, being proactive is the best way to go, and there are a few steps one can take to plan ahead in the event of a layoff. Aleksandr Volodarsky, CEO of Lemon.io, an online freelance marketplace for software developers, shared a few tips to be better prepared. For example, trying to diversify revenue streams.
“Diversifying revenue streams is the strategy itself. How to diversify depends on each case. Someone can pick up a consultancy gig, some can become part of the sharing economy (Airbnb, etc.), and some can invest or buy a cash-flowing business. No one is bulletproof, but by diversifying, you are not as sensitive as those who rely on just a 9 to 5 salary,” he told GOBankingRates.
Another tip is to look out for signs of trouble at companies, he said, one of which is when they are not adjusting to a new reality.
“It doesn’t mean companies have to cut all costs and keep the lights down, but becoming more capital efficient will prolong your runway, and you can win just by being still alive at the end of the recession,” he said. “If the company is not transparent enough, employees should ask their manager a fair question: what steps the company is taking to adjust to the recession. With this information, they can decide if they feel safe or not.”
A third tip some experts recommend is to invest in the gig economy. With inflation at 9.1% in June, many Americans are already turning to it. The 2022 Gig Payments Report, published by workforce payments platform Branch and card issuer Marqeta, found that 85% of respondents have increased their gig work recently or plan to increase it, with 45% citing inflation as the primary reason for doing so.
Pawan Gupta, CEO and co-founder of Fashinza, told GOBankingRates that things tend to move fast and change from week to week. While this may lead to the desire for some to constantly change with the weather, many events are outside of our control.
“What is in our control is being wise about the moves we make. Gaining situational awareness is key. It is important to have a good grasp on what’s going on and whether it will affect you in the short-term or long-term,” Gupta said.
In turn, Gupta said that two of the most important things you can do right now is invest in your skills and widen your network.
“By becoming irreplaceable, you are an indispensable asset to your company, team or clients. While not every job is at risk, companies will always need proactive problem solvers, dynamic thinkers and innovators — especially in times of crisis,” Gupta said.
He added that having a good sense of what are considered transferable skills, then learning and applying them, is a great safety net. “The fastest-growing jobs require transferable skills: health care, project manager, business development among other things,” Gupta clarified.
Finally, tapping into your network, widening it and nurturing it is something Gupta deemed the “golden ticket to some level of security.”
Paul Lewis, Chief Customer Officer at Adzuna, told GOBankingRates that while it can be hard to fully recession-proof your career, there are certainly steps you can take to set yourself up for success as much as possible. He recommended focusing on skill-building by looking at the job market and seeing what’s in demand that you could excel at and would feed your passion.
“There are many ways to learn skills beyond a traditional college program — coding classes online, certifications or other means can help you brush up on skills that will make you marketable for a vast variety of jobs and industries. Taking classes outside of work hours is a great way to build on your current skills while still earning a consistent salary,” Lewis said.
More From GOBankingRates