How to “Career-Cushion” and Protect Yourself From a Recession

Before revealing plans to cut 18,000 people from the Amazon workforce just earlier this week, Jeff Bezos called it: Recession is imminent. The man with an unfathomably large sum of money who went to space in a penis-shaped rocket reportedly said, “The economy does not look great right now. Things are slowing down.”

In the same November 2022 interview with CNN, he advised “[taking] some risk off the table,” adding that if one was thinking of buying a large-screen TV (or a new car or a refrigerator) to “maybe slow that down, keep that cash, see what happens…” 

He also suggested that small businesses delay “capital purchases.” He added, “Just a little bit of risk reduction could make the difference for that small business if we do get into even more serious economic problems. So, you’ve got to play the probabilities a little bit.”

An article on the official website of the International Monetary Fund (IMF) mentions that while “there is no official definition of recession,” “there is general recognition that the term refers to a period of decline in economic activity.” However, it’s important to keep in mind that “very short periods of decline are not considered recessions.” 

The million-dollar question here is not whether a recession is truly coming or not – or whether it’s already here. It’s actually: How do we protect ourselves from a recession? Coz what matters, ultimately, is just that. How will yet another slowdown affect us?

Swapping pizza night for a homecooked meal is good and all, or even holding off on that TV purchase as Bezos – the new-ish owner of a $500-million superyacht – recommended. But if you’re thinking of the larger picture, the internet suggests you do that by “career cushioning.” Just like “quiet quitting,” this hot new term packages an idea that’s been around forever but which gains traction in an increasingly chaotic world.

The social networking site for job-seekers LinkedIn describes career cushioning as behaviour that “includes seeking out new skills to make yourself more employable, reaching out to contacts to see what jobs are available, and brushing up your resumé.” In other words, have a professional Plan B. Or a safety net should you find yourself in the line of fire. According to Forbes, the term originated from dating slang wherein you look for better romantic partners when you’re still in a committed relationship, anticipating a breakup. 

So, do we risk moonlighting in addition to our main job even though it’s not well-received by all employers? How do we go about saving? Do we invest in stocks? We asked industry experts to help us navigate these questions and the ways we can safeguard ourselves – financially and otherwise – if and when faced with an economic slowdown. 

Don’t spend money you don’t have 

How much should you spend and how much should you save? What would be considered “luxury goods” in tough financial times?

Co-founder of e-learning platform ELVTR, Roman Peskin, advised that if you’re living in an expensive city with high rents, you must have enough disposable cash that covers at least three months’ rent, at any given time. During times when we’re bracing for a recession, he said, we must not spend the money we don’t have. Basically, don’t fall for credit. 

“There are people who might be used to a certain lifestyle, in the sense that they might say we need a fine-dining experience every weekend and we can’t go back to our McDonald’s days. Well, they might have to reconsider that thought,” he told VICE. 

Crypto investor Kralow suggested converting the luxury goods you already have into disposable cash. During the pandemic, even well-to-do families didn’t have cash for daily groceries. What are you going to do with that expensive watch if and when the markets crash and your currency hits an all-time low? 

Be an asset to your company

If you’re happy with your present job and cannot afford to be at the mercy of a sudden layoff, it’s imperative that you prove yourself to be an irreplaceable asset to the organisation. 

Peskin told VICE that one must apply the painkiller-and-multivitamin test to find out one’s importance in the company: If you can buy only one of the two, which would you drop? Multivitamins, of course. So, the question is, are you an “optional multivitamin” or a “necessary painkiller?”

“There are many employees whose roles might not be critical to the company, but they position themselves in such a way that they seem irreplaceable, [while] others who are actually important might not do so,” he said. “So, it’s important that you make people like you, attend all meetings, put yourself out there, and [are seen as] an important stakeholder.” 

Keep your profile “hot” 

Alternatively, if you’re looking for a new job because your current job is disenchanting for whatever reason, it’s a good idea to keep yourself informed of market trends and not to live in a happy but a delusional bubble. 

When Indian-American software engineer Parag Agrawal got the top job at Twitter a few months before Elon Musk’s much-publicised takeover of the social media platform, the internet was awash with articles on his absurd salary, perks, and privileges – only for the rug to be pulled from under his feet, less than a year in. No job is too safe for a recession – or the whims of a tantrum-prone billionaire.  

In this context, Lizanne Dsouza, who runs a hiring firm, told VICE that it’s essential to “keep one’s profile hot,” which translates to having an updated resumé, sharing it with HR managers and recruitment agencies so that you’re in their database, and being active on sites such as LinkedIn. 

“You’ve got to keep an eye out and not [stay] in the bubble of your current job. Be aware of what’s happening in your industry and how things might play out in the next few years, and accordingly upskill,” she said. “Being happy in your job is just a bonus and not something one can base one’s entire career on.”

Diversify your income streams 

It’s not enough to have a single income stream, particularly if a recession is anticipated. The idea is to find channels and ways to build smaller income reserves. “Investing in stocks is a bad idea, and crypto will not save you from a recession either, so it’s important to focus on the businesses you work for,” said Thomas Kralow, a Dubai-based entrepreneur and a crypto investor himself. “You need to have a diverse pool of income streams and not put all your eggs in one basket.”

Go for easy side gigs

One of the ways you can diversify your income stream is by taking on a side gig. If your full-time job does not have a strict moonlighting policy and allows you to freelance, do that. However, as Peskin cautioned, those side gigs cannot be as taxing as your primary job. 

“If your main job demands good use of your intellect, your side gigs have to be easy and mechanical because there is only so much mental bandwidth you have,” he said. “So, if you want to save, maybe take up jobs like deliveries, riding a cab, or anything mechanical that does not demand intellectual investment.” 

Maybe you can sell a range of hot sauces or cheese toasties at weekend markets or music fests like one of my friends does; maybe you can work on social media strategies for small brands as a side hustle if you know how to navigate that territory; maybe you can work as a dog walker or a babysitter over weekends; maybe you can teach English online. The options are limitless and technology can help you grab one that won’t be absolute drudgery. Use tech like it uses you and your online behaviours to sell your data. Payback time.

Build your public profile 

While you might have solid income streams, it cannot be exclusive to your social media presence. Kralow suggested that investing in oneself is the best investment, and this includes upskilling. 

“You need to put yourself out there on social media – maybe create a YouTube channel on the side or advertise your work on Instagram, so that you can reach out to more stakeholders in your domain,” he said. “This can prove to be the beginning of your own business, apart from building your public reserve.”

While social media might seem like a massive beast to tackle if one doesn’t know how to tap its potential professionally, Kralow suggested finding people in your field who know how to navigate it well. Ask for tips and do what works for you. 

For many, however, the pressure of putting one’s work out there on social media or marketing it on public platforms might be taxing in more ways than one. If you’re one of them, talk to people who’ve done it successfully and get tips on how you can do it in a way that gets you maximum returns for minimal investment of time and effort. If you’re looking for opportunities in something visual like fashion or design, for example, maybe it makes more sense for you to build your aesthetic and voice your opinions on Instagram rather than Twitter. 

Prioritise upskilling

Alongside building your public profile, work on building new skills. Kailash Nadh, the Chief Technology Officer at online stockbroker firm Zerodha, explained that those with little to no job experience can be at a disadvantage. 

Those with less experience will have to compete for fewer jobs in the same market as a large number of experienced job seekers. “This is the unfortunate reality. The one thing that can significantly improve one’s odds is putting serious effort into upskilling and excelling at one’s work,” said Nadh. He added, “The significant majority of our hires at Zerodha have been based on aptitude and skills, and not on individual industry experience.”

Olga Shapovalova, an entrepreneur in the marketing and tech sector, said that setting yourself apart is crucial. If your expertise is unique and if you have the knowledge to help your company survive, you’re likely to keep your job or be able to quickly get a new one. “So, investing in your hard skills (such as coding, learning a new language, other computer skills, industry-specific certifications) and ongoing learning is essential – even 20 minutes a day matters, [and] will [help keep] your efforts consistent.”

Take care of your health 

Many of us have experienced prolonged periods of anxiety and stress during the pandemic, as well as the global recession of 2008. Staring into an uncertain future can have a disastrous effect on both one’s mental and physical health, and lead us to neglect the most important asset one has: the body. 

“High levels of stress influence your physical and mental condition, and [encourages] overthinking,” said Shapovalova. “When we dedicate most of our time to considering endless options, we are unable to recharge, so it becomes harder to be productive.”

The first step, she suggested, is to strengthen our nervous systems with activities that can help reduce stress. This includes jogging, yoga, meditation, reading books, and using relaxation techniques. “Your mind is vital [in providing] the energy and motivation to resolve any situation.” 

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