Employed people are usually concerned about securing their jobs. They work so hard, spend a large portion of their working lives on their jobs, and develop competence in what they do. Being so absorbed in what they do, many employed persons fail to realize that paid employment won’t last forever. Many in this category usually do not have an exit strategy.
Everyone employed will leave paid employment one day, voluntarily or sacked. Every employed person is faced with three major exit choices, retrenchment, resignation or retirement. Whichever approach one chooses is bound to affect one’s future and career. For many employed persons, having to leave paid employment sometimes comes unannounced, unprepared and therefore frustrating. Without a structured exit plan, you may find yourself back to where you started: praying, looking, and hoping for yet another elusive job opportunity. So what is your exit strategy?
What is exit strategy?
In relation to paid employment, an exit strategy refers to series of actions or plans taken by an employed person to prepare for, mitigate or cushion the effects of sudden loss of job. An exit strategy outlines series of coordinated steps aimed at helping the employed reinvent themselves. These actions or plans may include having multiple streams of income or large amount of savings. It may include having the resources and skills to set up a business of your own. An exit strategy may include having an alternative job or a wide base of influential networks to link you up to another job opportunity. Your exit strategy may also be in the form of new skills or knowledge to easily switch to. Exit strategy includes having a private or family business to fall back on.
Why you need an exit strategy
Having an exit strategy is as important as seeking to get into a job position. An exit strategy ought to be part of the career strategy of every employed person. To be so comfortable with today’s employment as to forget tomorrow’s uncertain future is a recipe for crises in everyone’s career and wellbeing. In today’s organizational settings, it is almost a myth to expect to get an opportunity for a career long service and dedication to one organization or employment.
Corporate organizations are daily battling to resolve so many work related challenges. These challenges create enabling environment for retrenchment. In the search for quick solutions, employers often resort to retrenchment. Employees must therefore have a Plan B; an exit strategy. In the last decade for instance, economic downturns have remained a major source of concern for businesses. Many businesses are struggling to remain afloat as a result of recessions, fraud, regulations and other sundry issues. In the midst of all these, managers are increasingly under pressure to perform as shareholders demand higher returns on their investments.
To achieve revenue and profit targets, managers always seek for avenues to reduce cost. Reducing cost improves earnings thus increasing the prospects of making profit. For a number of organizations looking for short term solutions, staff retrenchment and layoffs appear to be the easiest way out. Every employed person is therefore at risk of losing job suddenly and unprepared.
Everyone needs an exit strategy from paid employment. Experts agree that sudden and unexpected retrenchment is detrimental to the health of victims. It creates anxiety and fear, factors that upset the emotional and psychological state of the affected person. For everyone employed, the onset of anxiety and fear makes it difficult to think coherently. In this state, it is difficult to make reasonable decisions about one’s career future. Having an exit strategy makes you resilient to shock occasioned by imminent exit whether sudden or planned. For those still employed, it also makes it easier to concentrate on your current job.
When to develop an exit strategy
The best time to develop a coordinated and stress free exit strategy is while still employed. While employed, you have the assurance of regular income; you have a stable mind-set and the time to explore various options. Waiting till you are out of job presents so many challenges. These challenges include being constantly under pressure, less coordinated and fearful. This makes it difficult to face the challenges that arise when you leave your job suddenly.
The assurance of a regular income and stable mind-set creates the enabling environment to perfect your exit plans, test run your ideas and make necessary adjustments. The hopelessness, confusion and fear associated with sudden exit make it difficult to achieve meaningful result.
How to determine whether you need an exit strategy
One of the easiest ways to determine whether you need an exit strategy is to answer the question: “How ready am I to accept a loss of job today?”
Being ready to accept a loss of job may imply having:
- An alternative job offer that you can take up in a short while
- Multiple streams of income from other sources or investments
- Saved some money to take you through the next six months without income.
- A good network of friends and other contacts to link you up to your next job.
- Developed new skills and/or acquired additional qualifications to fit into other job positions elsewhere.
- A private or family business to fall back on.
If you are unable to answer at least two of these questions positively, you are at risk. This implies that you urgently need to set up an exit strategy.
Note that the above list does not include issues about how stable your current job is or how much salary you earn. It also does not mention issues about how important your position in your organization is or how much of an expert you are in your field. These excuses form part of the usual myths that keep people glued to their jobs. Unfortunately, none of these can guarantee perpetual employment in the face of difficult economic circumstances which often confront today’s organizations.
An exit strategy ought to be an integral part of career planning. While accepting a job offer, it is also imperative to recognize that it may end in ways that do not fit into your career projections. At such times, a pre-programmed structure of exit makes it easier to manage the attendant disruptions in your career plans. Do you have an exit strategy? If you have none, now is the best time to get one.
You may also wish to read related blog post as:
How to develop the right attitude to survive layoffs
The Myths That Drive the Desire to Quit Our Jobs
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