Career Cushioning: Plan B for employees

16.11.23 - At a time when employees are taking more and more responsibility for their own careers, companies are facing new challenges. The latest impulse survey by Robert Walters shows that 72% of employees surveyed are preparing for possible career changes. This strategy, known as "career cushioning", is more than just a precautionary measure - it is an indicator of a change in the relationship between employer and employee. What factors are driving this development, and what does this mean for the role of companies in the career planning of their employees?

Why employees secure their career path

1.      Unfulfilled expectations of the workplace

50% of respondents in the survey stated that they were dissatisfied with their current position. They cited reasons such as lack of career development, disagreements with management or lack of recognition for work done. Excessive stress and an inadequate work-life balance also have an impact. 

2.      Turbulent economy

Around a fifth of respondents cite the fluctuating economic situation as the main reason for considering alternative career options. Economic instability is having a detrimental effect on the general wellbeing of employees. Cost-cutting measures at the corporate level, leading to downsizing and hiring freezes, exacerbate this dissatisfaction. Postponed promotions, lack of salary increases or limited funds for further training also lead to negative feelings among employees.

3.      Internal changes

A further fifth reacted to internal changes within the company. These range from reorganisations to changes in corporate philosophy. There are two main reasons for this: Firstly, a fundamental change in company culture can create a sense of alienation, particularly when a new management team takes over or a significant strategic realignment takes place. Secondly, internal changes such as reorganisations or mergers can create a climate of uncertainty that causes employees to proactively seek alternative employment opportunities.

4.      Unattractive remuneration

43% of survey respondents believe that their salary is below the industry average. This perception can increase the feeling of unfairness and increase the tendency to look for better paid jobs. In addition, the feeling that one's own work and the effort invested are not fairly compensated can lead to frustration and increase the desire for appropriate remuneration.

5.      Proactive career planning

Employees use various strategies to secure their professional future. According to the survey results, these range from consulting a recruitment agency (46%) and updating their CV (31%) to monitoring the labour market (15%) and building a professional network (8%).

Recommendations for Employers

Hannah Hermann, Manager of Finance & Real Estate at Robert Walters in Hamburg, expresses her views: "The trend of Career Cushioning makes it clear that an increasing number of employees are steering their professional careers themselves, rather than relying on established paths within their company. However, this phenomenon does not necessarily have to be viewed negatively by employers. In many cases, it can contribute to employees further qualifying themselves and demonstrating higher levels of engagement. Their networking activities increase, which can be advantageous for the company. It is also not a given that employees taking such steps will actually change employers."

Hermann outlines the following strategies that employers can adapt to respond to these challenges, supporting employees in their career planning and retaining them within the company:

1.       Conduct regular employee conversations and feedback sessions to assess satisfaction and employee needs. Identify factors of dissatisfaction early on and develop specific programs for professional development and recognition.

2.       Be transparent about the financial situation of the company and clearly communicate the measures taken to address economic challenges. This can reduce employee uncertainty and provide them with a solid foundation for their own career decisions.

3.       In the case of significant internal changes, employers should have a clear communication plan. Involve employees in the change process, for example, through feedback loops or workshops. This creates a sense of involvement and reduces the risk of alienation.

4.       Regularly monitor salary trends compared to market standards and adjust compensation if necessary. Performance-based bonuses and transparent advancement opportunities can significantly increase employee satisfaction and motivation.

5.       Provide resources for professional development, such as training, workshops, or mentoring programs. Additionally, encourage networking opportunities to enable employees to plan comprehensive career paths."

If you are currently looking for new employees or a new challenge, we look forward to talking to you.