Layoffs for Employees, Dividends for Investors

So read the headline of an article recounting the quick turnaround of a recent private equity investment. Much of that quick profit came as a result of a 10% cut in the company's workforce. I spent much of the 1990s watching the LBO cycle play itself as a senior human resources executive who had the unenviable task of firing lots of people. Never an easy thing to do. However, I am not going to write about how unfair it might be to the individuals involved. It is. Most of them did their jobs, worked hard and cared about the companies they worked for. However, the world changed around them. Private equity firms merely speed up the process.

We are repeating the cycle we went through in the 90s. Thanks to ever improving technology I anticipate this trend will not only continue but will accelerate. As a result no matter how hard you work and how good you are at what you do, your job is always at risk. New boss, merger, private equity buyout- all have job ending potential.

What can you do to protect yourself. Always make sure that you keep learning new skills. Stay current on what is happening in your field and in your industry. Develop a network of friends and colleagues that you can count on. Help them whenever you can. Most importantly, always have a plan ready to find a new job. If you lose your job, and statistically that is highly likely, you need to be ready.

The good news is (and there is good news), most people who change jobs, or careers, are happier after they do so. Often they are thankful that they were laid off because it forced them to do something they were thinking about doing but were afraid to do. Okay that perspective comes with hindsight only. Getting fired is painful, scary and really, really difficult. That is why it is best to prepare for it beforehand or, if you are unhappy where you are, be proactive and find something better before you are faced with the prospect of being let go.

Let me leave you with one final thought: When I was a lawyer I never imagined ever doing anything else. For business reasons I was transferred by my firm to another city and shortly thereafter, for reasons of geography, I took an HR position with one of my clients. Surprisingly I liked that work even more. After a long career in HR at several companies, after a takeover I took some time off to write a book, teach and start a corporate training and consulting firm. Surprisingly I liked that even better and felt really good because I was helping people. Each of those transitions was not without their challenges. However, I survived and prospered, leaving me to preach what has become my basic life philosophy- "There are no limits on what we can accomplish except those we place on ourselves." Remember, from the vantage point of doing something you love the view around you is always pretty good.