Career Cushioning: Basics and Strategies for Financial Security

While total employment in the U.S. increased by 216,000 jobs in December 2023, around 141,000 more people were laid off than the year before, representing a 10% increase. Disruptive forces like global pandemics and the emergence of generative AI have impacted many people’s job security, and career cushioning is a rising trend among American workers as a result.

Career cushioning can be an effective response to economic uncertainties, and can bring peace of mind even when the economy as a whole is relatively strong, as with the current job market. This article will provide a more in-depth definition of what career cushioning is and how it can help you prepare for a career change or job loss.  

What is career cushioning?

Career cushioning is a strategy in which professionals take proactive steps to make themselves more marketable to future employers in order to develop greater career security. Specific activities may include attending networking nights, keeping their resumes and LinkedIn profiles current and updated, and perhaps even applying for jobs on a periodic basis.

Career cushioning has become more widespread recently, largely because of a perception of an economic downturn — a perception that has perhaps been heightened by high interest rates and the recently high levels of inflation. When employees feel they don’t have job security or that their current situation won’t meet future needs, they are more likely to be proactive in their career choices.

Career cushioning strategies

Although career cushioning takes some effort, it doesn’t have to be overly complicated or time-consuming. Below, we’ll cover some of the most common career cushioning strategies professionals will use as they look to the future and take proactive steps.

Use social media and LinkedIn

Platforms like LinkedIn have become strongly tied to career cushioning strategies. Job seekers use these social media platforms to network, stay informed about job opportunities, and build a meaningful professional online presence.

LinkedIn is similar to other social media platforms in that it allows you to connect with people you know and share content. What makes LinkedIn unique is that people typically use it for professional rather than personal purposes.

If you’re just starting out on LinkedIn, make sure you choose a professional headshot for your profile and connect with people you know from current and past positions. Keep your profile updated, share helpful and valuable content, and engage with others through comments and messages. You might also join groups related to your profession or take advantage of the helpful and informative articles LinkedIn provides.

Improve in-demand skills

Upskilling for current and future roles can be a great way to build a career cushion. This could mean learning new skills or building on current skills, and it’s especially valuable if the skills you’re focusing on are in high demand in the current marketplace. It’s also helpful if you’re looking to pivot from one industry or field to another.

Many people in today’s workforce are “quietly quitting,” a term used to describe someone who is doing just enough to meet the minimum requirements of their current job, without making the extra effort it may take to be promoted or earn a raise. Quiet quitting is more likely to happen when employees feel disengaged from their work or underappreciated by their employer.

Whether you want to find a career that brings you more joy or a position where you’re better appreciated, or are simply looking to advance in your current position, upskilling can help you achieve your goals. Try to identify specific skills that are highly sought after in your current or preferred job field.

If you’re in tech, these skills might involve software development or automation. For someone in marketing, these skills could include SEO, social media, marketing, or lead generation.

Explore side hustles and part-time opportunities

Many people are exploring side hustles and part-time work as a career cushion in addition to an avenue for some extra short-term income. As well as putting a few extra dollars in your pocket, working a side hustle can also help you build and expand your skill set.

These days, starting a side hustle is easy thanks to our ever-connected world. Popular online options include selling digital products, becoming an affiliate marketer, or testing apps and websites. If you’re motivated to create your own content, you can also start a podcast or make money from a YouTube channel.

Opportunities are also plentiful in the world of the gig economy. You could work your own schedule as a rideshare driver or personal shopper. These jobs typically enable you to work your own schedule, meaning you won’t have to take time away from your current full-time position.

If you’re interested in taking on some part-time work but aren’t sure where to start, consider browsing through the open freelance jobs on Upwork. You’ll find listings for roles and tasks that encompass a variety of interests and skill sets.

Related: 20 Side Hustle Ideas To Make Extra Money in 2024

How to prepare for a career change or job loss

Preparing for a job loss or career change can be both scary and difficult, but there are some steps you can take that will make it easier. While nobody ever wants to find themselves in this position, it isn’t something that anyone can fully control.

You’ll be grateful that you have a well-thought-out backup plan if you ever find yourself in a situation where it’s necessary. Below we’ll outline some actionable steps to create this type of plan.

Assess your current financial situation

To get the full picture of your current financial status, you’ll need to take stock of your current monthly expenses and any outstanding debts you have. You should also consider any money you have in savings accounts and how long you could meet your obligations with the funds you have on hand.

Usually, having enough cash to cover three to six months of expenses is recommended. If you don’t have an emergency fund right now, make a goal to start putting some money away each month. Even if you’re not able to save as much as you’d like, having something is better than nothing, and your savings account will add up over time if you remain consistent with your contributions.

You’ll also want to create a detailed budget if you don’t already have one. Having a budget will help you understand where your money is going and what commitments and expenses you incur on an ongoing basis. Creating a budget will also help you see where you might be able to cut back on non-essentials.

Update your resume and professional profiles

We’ve already talked about the importance of keeping your LinkedIn profile up to date. In addition to providing the best possible picture of your education and experience, having a current LinkedIn profile helps you appear more professional and organized than having one that is outdated.

If you’re looking for additional ways to boost your LinkedIn presence, you might consider optimizing your profile for search purposes through the use of relevant keywords. Staying active on LinkedIn by posting regularly and engaging with your connections also helps.

You’ll also want to update your resume (or create a resume if you don’t already have one). Include space to highlight relevant experience, recent achievements, and transferable skills. Before you share your resume with recruiters or hiring managers, you can seek feedback from colleagues and other trusted advisors in your network.

Related: 20 Resume Writing Tips To Stand Out and Land Your Dream Job

Expand your professional network

Don’t underestimate the importance of building your network and making professional connections as you build a career cushion and position yourself for future opportunities. You’ll find many opportunities to make meaningful connections both online and in person.

To grow your network online, consider attending webinars or participating in online forums where you can engage with others. You’ll build familiarity with others in your field, and also learn valuable information that can contribute to your continued skill development.

Attending events in person is also beneficial. Look for local networking groups or professional associations to participate in. You might also reach out to former colleagues and peers to reconnect and strengthen old relationships.

Explore upskilling or reskilling opportunities

Staying competitive in the job market requires upskilling and reskilling. Do some research to learn about the most in-demand skills in your particular career field and consider how you can grow in these specific areas. Make sure you think about soft skills like communication and leadership as well, since these are valuable in any work environment or job role.

Popular avenues for learning include online courses, workshops, and certification programs. In addition to exposing you to valuable content and information, you can include these certifications on your resume or share them on your LinkedIn page after completion.

Whatever path you take, a commitment to lifelong learning will enhance your adaptability and marketability, especially as you navigate the uncertainty of job loss and career changes.

Prepare for the job search process

If it’s been a while since you had to search for a new job, you may be uncertain about the specific stages and nuances of the process. Some people will choose to work with a career expert or a career coach since they are knowledgeable about how to navigate the process of job hunting.

If you choose to search for a new role on your own, consider how you could research potential employers and how you could tailor your application to specific job postings. Employers can often tell when an applicant sends the same cover letter to each hiring manager or if they take the time to create a unique letter curated to the particular position. You’re more likely to be invited for an interview if they can tell that you took the application process seriously.

Once you are invited for an interview, you should take time to prepare for the questions they may ask and think about how you can present yourself as a strong candidate. Be prepared to answer what interests you about the job and what you value or appreciate about the company. Spend some time learning about the organization so that you’re prepared to answer questions like these.

Finally, remember that finding a job will require some patience and perseverance. It can be a discouraging process, but setting realistic goals and viewing rejections as a learning opportunity will help you stay focused and remain positive through the ups and downs.

Related: Job Application Process: Key Strategies for Each Step

Balancing your current job with search activities

When you’re thinking about a new position, it can be challenging to remain fully focused and engaged in your current role. Typically, people who are career cushioning currently have a job, and you should continue upholding your obligations even while you’re thinking about the future.

Many people find it helpful to break their search down into smaller steps and goals. This way, they don’t feel overwhelmed by the pressure to complete the entire process in one sitting.

You might also set limits on the amount of time you spend on career cushioning. You could schedule the specific times of day you’re building your network or enhancing your skills. Be honest with yourself about what other priorities you need to continue to focus on even as you have additional work on your plate.

Finally, remember that it’s always wise to have a “Plan B” or a backup plan when you’re assessing various career options. Stay open-minded and think about what you will do to pivot if your preferred plan falls through for whatever reason.

Find career opportunities on Upwork

Career cushioning requires an investment of time and energy, but it can be incredibly helpful as you navigate the uncertainty of the current job landscape. By growing your network, building key job skills, and keeping your online social media profiles current, you’ll set yourself up to stand out to employers and increase your future prospects.

Another way to discover new opportunities is to browse freelance and full-time jobs available on Upwork. Listings include opportunities for a vast range of skill sets and interests. Check it out today.

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Upwork does not control, operate, or sponsor the other tools or services discussed in this article, which are only provided as potential options. Each reader and company should take the time to adequately analyze and determine the tools or services that would best fit their specific needs and situation.