Downsized Executive… What’s Next?

15 March 2010 195 views One Comment

When a recession sets in, the first employees to go are highly compensated executives that can be replaced by much lower cost managers who are eager to make a name in the company. Unfortunately many of these executives are overlooked when applying for jobs because of their age and past accomplishes. Hiring managers are either intimidated by their experience or doubtful of their capabilities because of their age. Unfortunately these misconceptions can make it very hard to find a new job and contrary to popular belief the career as an executive doesn’t pay well enough to guarantee an early retirement. What’s next for silver haired applicants?

Portfolio Careers – Many executives realize that they have a number of skills that can still be relevant in today’s business world. Evaluating and applying these skills can lead to a number of opportunities to produce revenue. One opportunity alone may not create the type of revenue your used to, but combined they can create a very comfortable stream of revenues.

Startups – 82% of the startup companies today will fail within the next 10 years. Most of these failures could be averted with a bit of guidance. Many executives who leave the world of corporate leadership find a great home working with one or more startup companies providing the same services. No one startup can afford that level of expertise, but serving as a compensated board member for a few of startups can lead to viable compensation.

SMBs – Small to medium businesses also need this type of leadership. If you catch a growing company at the right time, you may be able to help them build a relevant new division that delivers Fortune 500 level capabilities in this small company. It can be a real challenge getting involved with one of these companies at the right time, but if you are diligent and well connected in a given industry it may just be possible. A great place to start looking is among smaller providers and customers from your past jobs.

Executive consulting – Seldom do CEOs want to cut their top executives. When it is a necessity, the door is often still open to some degree. Before abandoning all hope, reach out to your old boss, your replacement, and/or their new boss. In all likelihood, you may be able to secure a lucrative contract as an executive consultant for your prior employer or their competitors. Often times an executive can end up doing their favorite part of the job, without the time commitment, stress, and unnecessary busy work. If your negotiation skills are strong enough, it may be possible to do so at a higher annual salary than you ever made as an employee.

The future is not as clear for silver haired executives as it was a few years ago, but with a keen eye and a clear evaluation of your skills you can carve out a highly profitable new niche.

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