Recessions

How to Protect Your Job in a Recession

Your company has a plan to survive hard times. Do you?

by

Janet Banks

and

Diane Coutu

by

Janet Banks

and

Diane Coutu

From the Magazine (September 2008)

Summary.

Reprint: R0809J

As the economy softens, corporate downsizing appears almost inevitable. Don’t panic yet, though. While layoff decisions might seem beyond your control, there’s plenty you can do to make sure you retain your job.

In this article, Banks, a former HR executive at Chase Manhattan and FleetBoston Financial, and Coutu, an HBR senior editor and former affiliate scholar at the Boston Psychoanalytic Society and Institute, describe how to improve your chances of survival. It’s mostly a matter of coolheaded planning, they observe. When cuts loom, the first thing to do is act like a survivor. Be confident and cheerful. Research shows that congeniality trumps competence when push comes to shove. Look to the future by focusing on customers, for without them, no one will have work. Survivors also tend to be versatile; tight budgets demand managers who can wear several hats, so start demonstrating what other capabilities you can offer. If you’re, say, a manager who once worked as a teacher, take on a training role.

Remember to be a good corporate citizen: Participation matters now more than ever. It isn’t the time to behave as if work is beneath you or to argue for a new title. When one executive’s department was folded under the management of a less-experienced colleague, she swallowed her pride and wholeheartedly supported the new hierarchy. Her superiors noticed her commitment and eventually rewarded her with a prestigious appointment.

It’s also important to offer leaders hope and realistic solutions. Energize your colleagues around change, like the VP of learning at a firm undergoing major staff reductions did. He organized a humorous in-house radio show that revived spirits and helped management communicate with employees—and ended up with a promotion.

The Idea in Brief

Your company has a strategy for surviving hard times. But do you? In a troubled economy, layoffs can hit with frightening regularity. Sure, these decisions may be beyond your control. Yet you can take steps to protect your job, say Banks and Coutu.

Three practices can help you minimize the chances of becoming a casualty: 1) Act like a survivor by demonstrating confidence and staying focused on the future. 2) Give your boss hope by empathizing with him or her and inspiring your team to pull together. 3) Become a corporate citizen by taking part in meetings, outings, and new projects designed to support a reorganization.

The Idea in Practice

Banks and Coutu recommend three strategies for recession-proofing your job.

Act Like a Survivor

If you want to be a layoff survivor, it helps to act like one:

Demonstrate confidence and cheerfulness.

When people need help getting jobs done, they’ll choose a congenial colleague over an unlikeable one. No one wants to be in the trenches with someone who’s always gloomy.

Keep your eye on the future.

There’s no better way to look forward than to sharpen your focus on customers. Without them, no one will have a job in the future. Make anticipating customers’ needs your top priority. And show how your work is relevant to meeting those needs.

Wear multiple hats.

To keep expenses in check, look for opportunities to play more than one role and leverage your diverse experiences. For instance, a marketing manager who had previously taught school volunteered to take on sales training responsibilities.

Give Your Boss Hope

The better your relationship with your manager, the less likely it is that you’ll be cut. Strengthen that bond through these practices:

Empathize.

Most leaders find layoffs agonizing. By empathizing with your manager, you deepen your bond. You also demonstrate a maturity that’s invaluable—because it models good behavior for others.

Unite and inspire your colleagues.

This ability can prove crucial during the worst of times.

Example:

At an international financial services company that had endured a 20% staff reduction, morale had plummeted. Isaac, a learning and development VP, assembled a team of volunteers who created a live radio show that engaged even cynical employees. It included a soap opera that kept staff laughing and waiting for the next episode. And it gave executives a platform to share key information, such as the company’s performance and structural changes. Morale improved, and Isaac eventually became head of management and leadership development.

Become a Corporate Citizen

Eighty percent of success is showing up. To become a corporate citizen:

Attend all voluntary and informal meetings and corporate outings.

Get out of your office and walk the floor to see how people are doing.

Get on board with new initiatives; for example, by volunteering to lead a newly formed team crucial to your company’s recovery strategy.

In a troubled economy, job eliminations and hiring freezes seem almost routine, but when your own company’s woes start to make headlines, it all hits home. Intellectually, you understand that downsizing isn’t personal; it’s just a law of commerce, but your heart sinks at the prospect of losing your position. While you know that passivity is a mistake, it’s hard to be proactive when your boss’s door is always closed, new projects are put on hold, and your direct reports look to you for reassurance. Don’t panic. Even though layoff decisions may be beyond your control, there’s plenty you can do.

A version of this article appeared in the September 2008 issue of Harvard Business Review.

JB

Janet Banks (janet.e.banks@gmail.com) is a former managing director at FleetBoston Financial and a former vice president at Chase Manhattan Bank, responsible for leadership development and succession planning. She’s been an executive coach, an organizational consultant, and an executive search consultant. She lives in Boston and continues small group facilitation work for nonprofits.
DC

Diane Coutu is the director of client communications at Banyan Family Business Advisors, headquartered in Cambridge, Massachusetts, and is the author of the HBR article “How Resilience Works.”

How to Protect Your Job in a Recession

The Idea in Brief

Act Like a Survivor

Give Your Boss Hope

Become a Corporate Citizen

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