Insights from a Senior HR Manager
& Lead Career Coach
Career change often brings concerns about paying bills, mortgages, loans, and supporting one’s family. Transitioning to a new career, especially when it involves a gap in steady income, undoubtedly impacts not only yourself but also your loved ones. As a seasoned HR Manager, not only have I seen this firsthand throughout my career, but I have also supported my own family and friends through career transitions. The uncertainty of losing a steady income can cause significant stress and anxiety, making it crucial for both employees and employers to address these challenges proactively. In this blog, I will shed light on a few strategies to help relieve some of the anxiety during a career change or facing job loss.
Understanding the Impact
Career change isn’t just about shifting jobs or dealing with the anxiety of being between roles or trying to transition; it also involves financial instability and insecurity. The fear of an uncertain future can be overwhelming and can take a toll on mental well-being. If you’re facing a career change, it is important to be proactive in seeking guidance.
Resources and Support
Here are some strategies to consider:
Financial Planning Workshops
Seek out some online courses. A workshop or webinar with a focus on budgeting, financial planning, or managing debt can provide some basics to help you plan and better manage your finances. The use of financial advisors or experts can provide you with practical tips.
Employee Assistance Programs (EAP)
If you’re still employed full time as you transition careers, see if you can access EAPs offered by your current employer. As part of their services, they often include financial services. This can be approached through webinars or one-on-one counselling sessions.
Severance Packages
If you’re being made redundant and that is your motivation for career change, ensure that your severance package meets the requirements of your jurisdiction and that you are receiving your full entitlements, taking into account factors such as length of service, salary, and benefits entitlements.
If you are unclear about the package presented, ask your employer for clarity on your severance pay, confirm your unpaid accrued leave, and any other entitlements, as these will all add up and can alleviate some of your financial uncertainty.
Support Groups
Sometimes the support we need is much closer to home than we expect. Seek support from peers, friends, or online communities who have experienced career change. Sharing experiences, tips, and emotional support can help you navigate the challenges of a career transition more effectively.
Practical Advice
Assess Your Financial Situation
Take stock of your current financial situation, including savings, expenses, debts, and financial commitments. Develop a basic budget to prioritise essential expenses and identify areas where you can reduce costs.
Explore Income Replacement Options
Have you considered alternative sources of income? This doesn’t need to be a new career or your job for the next five years—consider some short-term options. Think about options like freelance work, part-time employment, or gig economy opportunities to supplement your income during the transition period.
Communicate with Creditors
If you anticipate difficulty meeting financial obligations, proactively communicate with creditors to discuss repayment options, deferment arrangements, or hardship provisions. You aren’t the first person to be in this situation, and financial institutions will have procedures in place that might be useful. Explore these options early; you might not need to utilise them, but it can ease your mind to know what all the options are.
Seek Professional Advice
Consult with a financial advisor or counsellor to explore your financial options, evaluate the impact of a career change on your long-term financial goals, and develop a plan to rebuild financial security.
Wrapping Up
Talking about money can be stressful and embarrassing, but keep in mind, you’re not alone, and people want to see you succeed in your transition. The aim is to navigate this challenging period with resilience and confidence. Be proactive, prioritise your well-being, and ensure that you don’t need to face financial uncertainty alone. Good luck and trust in your journey!
More Reading
Still Feel Stuck?
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