A 2018 study by ProPublica and The Urban Institute showed that 56% of full-time employees over age 50 had suffered an involuntary job loss (defined as a layoff, deteriorating conditions or unexpected retirement). Tracking a larger sample of workers from 1992-2016 shows that, after age 50, only 46.9% of the sample (less than half) were employed full-time for five years or more. 18.4% were full-time, less than five years, 13.7% were part-time or part-year and 3.4% were unemployed. The rest (just under 18%) were no longer in the workforce through retirement, disability or other reason.
Late-stage job loss can be debilitating to your finances. A 2019 survey by Provision Living showed that 67% of working seniors (over age 65) would prefer not to be working (47%) or to be working fewer hours (20%). The primary reason for continuing to work was financial — 62% cited a financial reason, such as not being able to afford retirement, supporting family, paying off debt, etc.
These findings should influence your career planning even if you’re well below age 50. Are you ready for retirement to come earlier than you think? Are you equipped to handle increasing job insecurity? Are you marketable for short-term and part-time work, not just full-time, permanent employment?
Below are are four ways to maintain career longevity, but you can also check out my deep dive on careers, why they stall, how to assess where you are, and what you can do.
1 – Plan career and finances hand-in-hand
Earning a lot of money won’t help if you spend it all. Having a strong savings habit and investment discipline won’t help if you don’t make enough money to put away. It sounds counter-intuitive that planning for retirement will better ensure career longevity but a solid retirement plan gives you leverage in your career. When you don’t need any one job, you are better positioned to advocate for yourself, hold out for the right position and take chances on a lesser known company or by making a career change. A step further than retirement planning, I focused on pursuing FIRE (Financial Independence, Retire Early) to ensure I could always work on my own terms.
For financial planning, there are many personal finance books and blogs with tips on retirement planning, plus saving, debt repayment, and more. New in 2019 is a book from one of my favorite personal finance experts, Jill Schlesinger, The Dumb Things Smart People Do With Their Money, which provides a good overview of personal finance issues.
2 – Strengthen your negotiation skills
Learn how to negotiate for what you’re worth because your earning potential could be the biggest asset in your portfolio – even more than your home or retirement account. Past salary is a strong anchor for what future employers offer you. Raises are often calculated as a percentage of your current salary, so a low salary in the past continues to impact you going forward.
If you didn’t negotiate well before, it’s never too late to renegotiate where you are. Companies continually reorganize and restructure, and the job you’re doing now is probably not the same as when you started. You can negotiate based on your current span of responsibilities. In addition, look at what the outside market is paying for your skills and experience level – you may be able to negotiate for a salary adjustment.
At the very least, negotiate for flexibility so you have more time and autonomy for career management activities. You may even find enough flexibility to start a side business, which can help your financial plans and even help you get a promotion.
3 – Build and maintain a supportive network
A supportive network is a key ingredient to a strong career for several reasons. More jobs are filled via referral than postings – your network provides access to leads. Employers are choosy, so you need to be well-researched and prepared – your network is a source of information and insights. Careers are a marathon, not a sprint, with inevitable ups and downs – your network is an emotional lifeline.
If you haven’t prioritized networking in the past, start by reconnecting with people you already know. Never make the first outreach about your career plans or anything that you need – just say Hello and restart the connection. You can then schedule regular reminders to connect on an ongoing basis. You should also add activities, such as professional meetings or cross-functional company events, where you can meet new people. You want to both maintain and expand your network.
If an unexpected job loss hits, you will be glad you already invested in your network so you have people to turn to. If work availability becomes more volatile – e.g., fewer hours than you’d like, project instead of full-time – having an active network helps keep your pipeline of leads full.
4 – Craft and manage your personal brand
As job tenures decrease and more work becomes project-oriented, short-term or even part-time, more people will continually be in job search mode. You need to craft and manage your personal brand so that you continually market yourself. Like actors, who may spend more time in auditions than in production, today’s professional needs to be ready to audition (i.e., hustle and interview) on a regular basis. A personal brand enables you to differentiate yourself to be hired, retained and promoted.
Your reputation is part of your brand – what do you people think and say about you? Your online profile and social media activity markets your personality, expertise and background. Becoming known via media mentions, public speaking or published work enhances your brand. One of the areas I increasingly focus on now with my current coaching clients is becoming known as a thought leader – publicity is not just for companies anymore.
Today’s professional needs to be proactive to stay competitive
Whatever specific actions you decide to take, you need to take some action and be proactive. Job loss should not be unexpected – the statistics show it’s likely to happen, and I have seen very talented, hard-working professionals get laid off or restructured into a completely different, less appealing job that essentially drives them out. You may read some scary press about long-term unemployment that suggests it’s a societal problem and there’s nothing you can do. There are market issues for sure that can be improved around how people are hired and supported in their careers. That said, you shouldn’t wait for when, if at all, the market fixes itself. You can improve your personal chances by shoring up your personal brand, network, negotiation skills and personal finances.
Feeling stuck in your career? Check out my deep dive on careers, where I cover why people stall in their career, how to assess where you are in your career, and what you can do to move ahead.
A version of this post originally appeared in my column for Forbes.com.
