What is career cushioning? Can it protect you from layoffs in 2024?

The year 2023 is coming to an end and perhaps, one of the biggest highlights of it was the mass layoffs spanning across sectors. Meta, Google, Amazon, Nike, and even as recently as few days ago, Paytm announced huge job cuts – firing a significant amount of people from the work force. Now, as employees ready for the upcoming year, 2024, and with experts saying that layoffs will most likely continue there’s a new trend that they are adopting, called career cushioning. We take a closer look at what is career cushioning and why it is important in the times of layoffs. What is career cushioning? Workplace experts have noted a rise in employees indulging in career cushioning in the United States. But what exactly does this mean? As the name suggests, it means to cushion your career. Career cushioning, as HR experts note, is a strategy in which employees add security to their careers by taking proactive steps like attending networking nights, updating their resumes and LinkedIn profiles, and perhaps even applying for jobs. A Forbes report stated that the term career cushioning is derived from the dating world where individuals entertain other romantic options while still in a committed relationship. In the professional realm, it refers to keeping your options open and taking actions to “cushion the landing” should something unexpected occur. **Also read: Hate returning to the office? This new workplace trend, coffee badging, is for you** It’s coming up with a Plan B if and when things go wrong at your workplace. And in today’s environment, where job security isn’t guaranteed, it seems that career cushioning is the right way to go. In fact, more of the workplace is indulging in this practice. In June, a poll by specialist recruitment agency Robert Walters revealed that more than a third (37 per cent) of 2,000 white collar workers surveyed were taking steps to find a new job. Meanwhile, 66 per cent of those surveyed said they had monitored the job market, and 43 per cent had updated their resumes. According to Raj Tanwar, HR head, Advantage Club, a global employee engagement platform, career cushioning has become a means to stay afloat. Speaking to Entrepreneur.com, he said, “It reminds me of a proverb, ‘Survival of fittest’ which mounts so well in today’s volatile, uncertain, complex, and ambiguous times and career cushioning is what helps you to stay afloat. In simple words, upskilling, cross-skilling, and planning for more/an alternate career option to fall back to ‘cushion land’ in case of unexpected job loss.” Who should indulge in career cushioning? There are no restrictions as to who should and shouldn’t practice career cushioning. Many experts note that there’s never a bad time to review where you are in your career and look at your options to build your skills and gain new experiences. Moreover, if the industry or the economy is uncertain, then it’s the perfect time to start thinking about the next steps in your career, which can start with career cushioning. [caption id=“attachment_13550372” align=“alignnone” width=“640”] There are no restrictions as to who should and shouldn’t practice career cushioning. Many experts note that there’s never a bad time to review where you are in your career and look at your options to build your skills and gain new experiences. Image used for representational purposes/Pixabay[/caption] LinkedIn career expert Blair Heitmann said, “While there’s never a bad time to look for a job, it’s a good idea for anyone feeling uncertain about the future of the economy and job market to prepare for their next step.” For those working in industries with the biggest declines in hiring, including tech, retail and real estate, or those concerned that benefits like remote work and upskilling could be in jeopardy, now is the time, she advised, “to get your proverbial ducks in a row, so you can be prepared to make a move in the future.” Some also note that career cushioning can also soften the emotional blow of being laid off. “Employees can upskill themselves in relevant skill sets to help them remain ahead of their competition and make them better prepared as in terms of job readiness, thus lowering their chances of getting laid off,” Vidur Gupta, director, Spectrum Talent Management, a global talent management company, told Peoplematters.in. Why has career cushioning gained momentum? The year has seen massive job cuts across different sectors. In fact, Al Jazeera in a report called 2023, the year of layoffs . Think about it: Meta , Amazon, Google, Microsoft, Disney and many more have laid off a considerable number of people. It is reported that Amazon has bid adieu to over 25,000 workers this year, starting in March, when it announced that they were letting go off 9,000 jobs. Back in January, Google ’s parent company, Alphabet, announced a layoff of 12,000 employees, equating to six per cent of its workforce, following a substantial slowdown in revenue growth. [caption id=“attachment_13550382” align=“alignnone” width=“640”] Amazon is one of the many companies has laid off workers this year. It is reported that Amazon has bid adieu to over 25,000 workers this year. File image/Reuters[/caption] As recently as two days ago, Paytm’s parent company, One 97 Communications, terminated over 1,000 employees from various departments. Nike, the sports giant, also announced that it would be cutting hundreds of jobs. In a statement, the US-based sports apparel firm said that they have taken this measure to streamline the organisation, and will be spending $450 million during the layoffs due to restructuring and for severance for the employees. In fact, one report has stated that tech companies around the world have fired more than 425,000 employees in the last two years – until 26 December 2023. Data sourced from layoff.fyi, a website that tracks job cuts, show that 1,178 tech companies have laid of a total of 2,60,771 employees this year globally. This is a rise from the 1,64,769 employees fired in the previous year. And it seems that the trend of layoffs will continue into the new year. An online survey revealed that 38 per cent of business leaders said they think layoffs are likely, and over 50 per cent said their company will likely implement a hiring freeze. Interestingly, Artificial Intelligence (AI) is one of the reasons for layoffs in 2024, with 40 per cent employers saying they would be replacing workers with AI. In such an environment, it seems responsible and the right thing for employees to practice career cushioning as the market seems uncertain. Vijay Yalamanchili, CEO, Keka, a HR tech platform, told Entrepreneur.com, “Having a backup plan, you can safely land on when things go south is what Gen-Z believes in. It is time for people to realise that they aren’t limited to one role. I have been preaching the importance of honing multiple skills for 15-20 years now.” [caption id=“attachment_13550392” align=“alignnone” width=“640”] Managers should encourage and embrace career cushioning. It fosters a more transparent image and also allows the employee to feel safe that he/she has a backup plan. Image used for representational purposes/Pixabay[/caption] Should managers be worried about it? The short answer is: No. One workplace expert said that managers should encourage and embrace career cushioning as employees who see potential for growth and flexibility are more likely to stick around and remain engaged at work. Another said that supporting career cushioning fosters transparency, which fosters a better work environment. So, remember, as we bid adieu to 2023 and prepare for 2024, begin this practice. As they say, ‘be proactive and get moving.’ With inputs from agencies