When your company or industry is hit with layoffs, it’s natural to worry about the future of your career. For many of us, it takes the form of career cushioning, or lining up other job possibilities while still at our current job. This can provide a sense of stability in an otherwise volatile job market: you set up a safety net in case your current role doesn’t pan out as a way to keep your options open. It “cushions” the loss of a job, whether you’ve decided to leave or been laid off.
A lack of job security was the primary reason 37% of white-collar workers reported they were career cushioning, with economic conditions, internal business changes, and job dissatisfaction being the other most-cited reasons.
Is career cushioning the right move for you? Maybe, but it depends on your personal situation. Let’s chat about what exactly career cushioning is and when it makes sense to start building this safety net into your career.
What is career cushioning?
The term “career cushioning” is borrowed from a dating strategy where someone may have another partner lined up in case the current relationship doesn’t work out. Similarly, career cushioning is the strategy of developing a backup plan in case someone or something throws a wrench in your current career trajectory.
Career cushioning can take the form of keeping an eye on job boards and postings, taking on freelance work, or building a side hustle to bring in extra income. It could also look like “upskilling,” or developing new skills and gaining new experience outside of your current role.
At its core, career cushioning is neither good nor bad, but it can help you feel more confident when you’re anxious about the future of your role or company. Alternatively, if you’re happy in your current role and feel like your job is secure, career cushioning may not be the right strategy. That’s why it’s best to check in with yourself about why you’re considering career cushioning before you jump into the job application process.
Pros and cons of career cushioning
Some advantages and disadvantages of career cushioning include the following:
Pros
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Enables a quicker transition to a new job if you lose your current one
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Provides additional income to supplement your salary
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Encourages networking with others in your industry
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Keeps your skill set current by getting additional training
Cons
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May distract from your current role and responsibilities
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Could become a problem if your employer finds out
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May present a conflict of interest between freelance and full-time work
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Adds additional stress thanks to job hunting or overwork
When should you explore career cushioning?
If you’re not confident your job will be around next month, it may be worth considering career cushioning, especially if you lack “career confidence.” Career confidence is feeling passionate about your work and feeling that your role aligns with your values and goals. While it has rebounded somewhat across sectors like professional services, healthcare, and manufacturing, a study by LinkedIn Workforce Insights shows career confidence is still at a lower level than it was at the start of 2023.
Of course, there are other reasons you might consider career cushioning, ranging from burnout to disengagement in your current role.
1. Your current role doesn’t meet your expectations
If you feel unappreciated or unchallenged in your current role, it might be time to see what else is out there. You may also want to look for other work if your salary doesn’t match your needs or if the company’s values don’t match your own. Each of these issues can lead to feeling disengaged at work. If so, you aren’t alone. In 2022, 18% of workers reported feeling actively disengaged at work, a 4% increase from 2020.
At the end of the day, your reasons for feeling dissatisfied are your own and are reason enough to check out career cushioning.
2. You feel burned out or anxious
Globally, 42% of workers report feeling burned out—the highest number since May 2021. Burnout is a sign that you need to make some changes to your current situation ASAP.
Not addressing burnout can make it more difficult to recover later. The same is true of anxiety. If you begin to get the Sunday Scaries and dread going to work on Monday, this is an unhealthy level of anxiety that means something at your current job isn’t right.
Career cushioning can help ease your anxiety or give you hope by revealing a new role with different responsibilities that don’t contribute to your burnout.
Alternatively, you might consider taking some time off to see if that resolves your burnout. Some companies also offer sabbaticals to employees who have stuck with the business for a few years or more. A sabbatical can give you an opportunity to pursue new hobbies or education, recover from mental health issues, or go on an extended vacation.
3. You’re worried about getting laid off
Getting laid off can be stressful and overwhelming—and worrying about layoffs can be just as bad. If signs point to instability at your company, in your department, or in your industry, you may be right to be concerned.
Using career cushioning as a strategy to quickly recover after a layoff is a smart move that can also lessen the financial and mental impact of losing your job.
4. You’re worried about getting fired
Whether your concerns are unfounded or not, worrying about getting fired can actually put you in a worse position by affecting your productivity and enthusiasm for the job. Career cushioning may be beneficial in this situation by providing a sense of security that allows you to remain positive.
On top of searching for a career cushion, you should prepare for the possibility of leaving your current job by setting aside emergency savings and speaking to a career coach to boost your confidence and strengthen your skills.
How to get started with career cushioning
Career cushioning may have a lot in common with your typical job search, but there are unique considerations you should be aware of before you get started.
Network with people in your field
Networking is essential for staying on top of new job opportunities and industry trends. It can also help you with career cushioning by getting your name and skill set in front of other companies and professionals.
Attending industry events and connecting with others on social media sites like LinkedIn are two ways to begin networking. But if you’re feeling particularly shy—or your confidence has recently taken a blow —you may want to come up with a plan on how to successfully network.
Networking can involve creating an “elevator pitch” or brief statement that highlights your expertise. It can also involve reaching out to others for career advice or mentoring, or learning how to humbly promote yourself to others.
Keep an eye out for open jobs
Discretion is key when it comes to career cushioning as you don’t want your actions to put your current job at risk. If you update your LinkedIn profile or portfolio site, be sure to do so privately. You can also set up job alerts on LinkedIn or other sites like Indeed, FlexJobs, and Upwork.
You should also be cautious when using tools like LinkedIn’s Open to Work profile banner. While the idea behind this feature is to help you in your job search, there’s always the chance your current employer could see it and fire you. You can set the Open to Work banner so it’s only seen by recruiters and not just anyone on the platform, but even then it’s wise to be cautious.
Stay motivated during a job search
A job search is almost like a job in itself, and it’s easy to get burned out and demotivated along the way. By dividing your job search into bite-sized chunks, you can keep yourself motivated and less overwhelmed.
To do this, start by setting achievable goals. These could look like the following:
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I will apply to five jobs a week.
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I will reach out to two recruiters or industry professionals this week.
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I will update my resumé and LinkedIn profile by Friday.
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I will set aside $200 in emergency savings each month.
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I will schedule a conversation with a career coach tomorrow.
Additionally, be sure to celebrate any wins or achievements and practice self-care to help yourself overcome job search depression.
Discover more job hunting tips: Learn how to keep your spirits high and create a professional online presence with 30 more job hunting tips.
Monitor your well-being
Just like with a full-time job, burnout can crop up during your job search too. Finding a backup job in case your current role doesn’t work out is important. But managing your time efficiently, taking breaks, regulating your emotions, and seeking support from family and friends are just as important.
Talk to your manager about career growth
If you haven’t talked to your boss about growth opportunities within your current department or company, now’s your chance. A supportive manager should understand if your current role isn’t challenging you the way you’d like and support you by providing resources and opportunities to upskill or cross-train. Sharing your concerns about anxiety or burnout also gives your boss a chance to accommodate you.
It’s in your company’s best interest to keep a valuable employee. Along with a decrease in productivity, hiring your replacement costs anywhere from three to four times more than the position’s salary. Keep this in mind if you’re hesitant to chat with your boss about your career goals.
Get a head start on financial planning
It’s reported that 73% of workers who are laid off struggle financially, and 69% say they didn’t get any help from their former employers. This means you shouldn’t count on a severance package or unemployment to get by while you look for another job. This is especially true if you plan to leave your job of your own will, as resignations typically don’t come with severance and aren’t eligible for unemployment.
What you can count on, however, is your ability to start an emergency savings fund. Financial experts recommend saving at least three to six months’ worth of expenses. And while saving that much money certainly takes a while, even having a small amount set aside is better than nothing if you get blindsided by car repairs, surprise medical bills, or a layoff.
Only 48% of U.S. workers have enough emergency savings to cover at least three months of expenses. If you fall into the 52% of Americans who don’t have emergency cash saved up, you’re not alone—but you should start planning and saving. Making this a primary goal as you search for career cushioning opportunities is wise since you’ll still have a paycheck coming in.
Some recommendations for preparing your finances while you search for a career cushion include the following:
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Calculate how much emergency savings you need to cover three months of recurring expenses (groceries, mortgage, rent, etc.) and set aside a comfortable amount toward this goal each month.
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Adjust your lifestyle and expectations to know what you need to be comfortable and what expenses you can cut, like streaming subscriptions and UberEats orders. Then put the rest of your earnings into savings.
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Create a job transition budget as a backup plan in case you have a period of time where no paychecks are coming in as you transition to your new job. (Keep in mind that a new employer may also pay your salary on a different schedule, so you may have a longer wait time for your first check.)
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Research what to do with your 401(k), as you’ll typically have four options: leave the money in your current employer’s 401(k) plan if allowed, rollover your money to your new employer’s plan, rollover to an IRA, or cash out.
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Start a part-time job or side hustle to earn extra income on the side—but make sure the additional cash flow doesn’t contribute to lifestyle creep. Some part-time jobs even come with health insurance and other benefits, which can help you out in a pinch if you’re suddenly let go. Side hustles can also benefit you with hands-on learning and upskilling opportunities along with extra cash.
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Know your rights when it comes to severance packages and learn how to negotiate your severance before you have to sign anything. You can also consult with a lawyer or financial expert to learn how long you have to consider a severance package, any tax implications, and whether you’re required to sign a non-disclosure agreement or other paperwork to receive benefits.
Tips for success with career cushioning
Be proactive
Don’t just wait for amazing opportunities to come to you. Instead, be proactive and learn how to market yourself. This doesn’t mean you need to launch a social media campaign or email newsletter, but you should at least refine your portfolio and online profiles to best represent your skill set and expertise.
Some other ways you can be proactive in your career cushioning search include the following:
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Create a list of dream jobs or employers, then check their job boards, contact them directly, or reach out to and network with people who work there.
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Update your resumé and cover letter, and consider making multiple versions of each if you plan on applying to different roles. Be sure to format your resumé in a logical way and have a friend proofread it for typos.
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Update your LinkedIn profile with your latest achievements and role. Actively posting on LinkedIn can also get your name in front of recruiters, and LinkedIn’s recommendation feature is another essential way to gather a strong list of your skills and accomplishments. Consider asking your current coworkers for recommendations if you feel comfortable, or reach out to previous coworkers, managers, and clients.
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Schedule informational interviews where you learn more about a company you’re interested in or the roles they have open. (Additional interview practice doesn’t hurt either.)
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Network with friends, former coworkers, and new acquaintances to get your name out there and possibly get a referral for a job opening.
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Do your homework—don’t assume that a company that gets a five-star review on Glassdoor is necessarily a great place to work. Make sure you dig into company culture and typical tasks associated with the role you’re interested in. Contacting former employees or those currently in your desired role is a great first step.
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Know your salary expectations as well as what benefits you might accept in lieu of a higher salary, such as remote work, stock options, or fully covered health care.
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Take advantage of upskilling to modernize your current skill set or learn new skills. Don’t forego soft skills or non-technical skills while learning, as leadership, communication, and teamwork are among the top in-demand skills that employers look for most.
Be flexible
Remaining flexible during your career cushioning job search can help you stay positive and less stressed. Job search flexibility not only includes considering alternatives and tailoring your resumé. Here are some other ways you can stay flexible while you set up your career cushion:
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Take inventory of your skills and interests: If you’re hoping to make a career change into a role that leaves you fulfilled, a personality test like the Big 5 can help you understand your strengths and weaknesses. Along with a career coach, personality and aptitude tests as well as introspection can give you a better idea of what jobs you’ll succeed in.
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Be open to feedback: If you have a trusted coworker or boss, listen closely to any feedback they have about your skill set or experience. Coworkers especially may be excellent people to ask about what you do well at work (and what you could improve on).
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Consider alternative solutions: You may be gunning for a full-time backup job, but you may want to keep your eyes open for contract work, freelance opportunities, or part-time positions as well. (Just be sure you understand the implications of each type of work before you commit.)
Stay positive
The job search is prime time for imposter syndrome to rear its ugly head, but don’t let self-doubt block you from landing a dream job. You can build yourself back up from that nagging voice in your head with positive affirmations—these are excellent for boosting your confidence when you start a new job or run into challenges at your current company.
Positivity can keep your head in the game over the long haul as well. Most LinkedIn feeds are full of posts by job seekers who have several months of hunting under their belts with no end in sight. This is likely why more than half of people who are unemployed in the U.S. feel burnt out from their job search.
You may even experience a sense of grief over the impending or potential loss of your job. This is normal, and learning how to process this grief is important for regaining positivity and hope for the future.
Don’t put all your hopes into one job possibility
Your career cushion is a backup plan, so it makes sense to not rely on a single solution. Even if you discover an exciting opportunity, don’t assume it’ll work out until you’re signing in for your first day. (And even then it’s worth it to keep sending out feelers, as 72% of U.S. workers found the new role or company wasn’t what they expected.)
Know that you can reject a job offer you’ve already accepted. Most U.S. states are considered at will, which means both employers and employees can end the relationship with no notice. Just be sure to have a solid reason for changing your mind, convey it clearly, and provide as much of a heads-up as possible to the employer. It’s also worth thanking them for the opportunity.
If you’re thinking of rejecting a job offer because something better came along, don’t rush your decision. Sit down and consider the pros and cons of each job, including benefits and perks that are important to you before you make your final decision. You should also consider the potential future impact of not following through, especially if you work in a small or tight-knit industry where companies often share who’s a good job candidate and who’s burned bridges in the past.
Career cushioning can be a reassuring safety net
Layoffs became so common in 2023 that Forbes created a Layoff Tracker to list all the companies that cut their workforce during the year. Reading through the list may be anxiety-inducing, so it makes sense that workers are looking for ways to reclaim control over the future of their careers.
Career cushioning is one way to protect yourself from layoffs and feel more secure despite a turbulent job market. If you go about searching for a backup job or adding income and skills with a side hustle or part-time job, it’s important to weigh the pros and cons and understand the implications of each opportunity.
BetterUp can guide you through your job transition and advise you on the ways you can make the best out of a layoff or career change. You’ll get matched with a career coach who provides advice, guidance, and mentorship to help you build a career you’re passionate about and also aligns with your values.
