Insight

It is almost the end of 2007 and congratulations to those of you who have had a good year and are expecting to enjoy good bonuses.

However, even in the current tight labour market, there are those among us who are in the unfortunate position of having to deal with being retrenched from long-held, often senior-level jobs. Graduate degrees and years of job experience are no guarantee of job security in this day and age.

The current job market in the Asia-Pacific region remains positive with unemployment rates the lowest it has been in a decade. Wages have been rising faster than inflation in most countries. The medium term outlook is also bullish with most employers expecting staffing levels to continue rising.

However, there are undeniably some dark clouds in the horizon. Widespread mergers and acquisitions in the IT industry over the past year has triggered significant consolidation and restructuring in the industry. This is already resulting in some job redundancies, particularly amongst senior and middle management. The consequences of the US sub-prime credit crisis is also starting to reverberate in financial institutions across the world.

No less an economic authority as the former US Federal Reserve chairman Alan Greenspan has opined that the vital US economy is approaching “stall speed”. Some economic pundits even claim that the outlook for the Asia-Pacific region is the most uncertain it has been since the 1997-98 financial crisis.

With this uncertainty, you could do worse than to steel yourself for the worst-case scenario – potential job loss - while the sky is still sunny.

This brings to mind a discussion that a friend reported having with an acquaintance of his who had been retrenched from a fairly senior position. This acquaintance received a job offer after some months of unemployment, but the offer was for a position with a lower title & lesser pay than his previous job.

My friend felt that his acquaintance should grab the offer given his situation, but this gentleman was reluctant – he was extremely concerned of the implications such a move would have on his future career path.

What would be your decision if you were this person’s shoes?

I just like to share some factors to consider if you ever have to decide on offers for jobs that are of a lower rank or pay to previous positions.

Financial Status:

Are you the sole breadwinner? Are you debt free? You want to ensure that the financial impact is minimal given that there may be no income for sometime. You need some cushion, be it your spouse's income, your severance package or savings. Ideally, you should have enough to cater for at least 6 months of living expenses.

Mind-set:

This I feel can be the most critical factor. To accept a pay cut may be fine but accepting a role for a lesser title or rank may be more difficult for some to swallow. The psychological impact would be worse if the new offer does not include your own office, a personal secretary or other senior executive trappings you may have gotten used to. Can you bring yourself to accept this?

Skill sets:

If you have specialized skill sets that is not readily available, you are likely to land a similar position quite easily. However, if there is ready supply of similar skill sets in the market and if age has caught up with you, you may need to be less choosy.

Environmental trends:

Always be mindful of the specific technology and business trends affecting the jobs outlook in your industry niche. A rising tide floats all boats, but a falling tide can sideline those who are unprepared for a long time.

Should you decide to hold out for a better job offer, do set a definite time frame to review your situation, say after 3 months. It is obviously not advisable to be too adamant about matching the pay, title and perks if, by the end of 6 months, the right job is remains elusive. Do not wait till you are desperate to lower your expectations. You may well end up being forced to accept an even worse offer down the road.

Be mindful that sometimes you have to look at what is the best option in the current situation and accept it. With a job in hand and a more peaceful state of mind, it will be easier for you to re-strategize and resuscitate your career plan.