Thriving in a Cyclical Market: My Personal Learnings on Savings and Strategies for Seasonal Recruiting Professionals in small local markets.

Like many of us, this economic downturn made me realize for the first time what it means the cons of working as a seasonal professional. The recruiting industry is known for its seasonal fluctuations and can be significantly impacted by economic downturns every ten years or so. After working over 17 years in recruiting and surviving the 2008 recession, I was less lucky this time. I was laid off from a senior management recruiting role with low chances of finding a new opportunity that would fit my skill set during the recession.

After a few months at home reflecting, networking, and investigating the current situation, I realized I needed to be more strategic in planning my recruiting career (well, I did not know back that I would make a career out of this gig; did you?) as a seasonal professional and working in this profession in a small local market. Based on my learnings, I recommend that all recruiting professionals who see recruiting as a career proactively manage their finances and career to ensure stability during challenging times.  You can find below some of my key learnings and insights on the subject:

1. Understand the different recruiting career development paths in your location. Ask yourself questions: Are there enough senior roles, or will you consider relocating for a more senior position? Is having my own business something I would see as an option in the future? For example, Israel has limited senior/executive recruiting opportunities in tech during standard times and recessions.
2. Build a substantial emergency fund - An emergency fund is a must-have for anyone, but it's particularly crucial for those in seasonal occupations like recruiting. Aim to save at least 6-12 months' living expenses in a high-yield savings account or another easily accessible, low-risk version. This will provide a financial cushion during periods of unemployment or underemployment.
3. Negotiate higher compensation packages during prosperous times. When the market thrives, it's an excellent opportunity to negotiate for a higher salary or better benefits. This could include arranging for a higher base salary, increased commission rates, or improved bonus structures. Securing a higher compensation package can help compensate for potential financial losses during downturns.
4. Diversify your income sources - Don't rely solely on your primary job as a recruiter for income. Diversify your income streams by taking on freelance or consulting work, teaching courses or workshops, or even starting a side business. This will provide additional financial security, help you develop new skills, and expand your professional network.
5. Invest in your professional development- Stay competitive in the recruiting industry by continually investing in your professional development. Attend industry conferences, take courses to improve your skills, and earn certifications. Doing this, you'll be better positioned to find new opportunities or pivot to a new role within the industry during tough times.
6. Network, network, network - Building and maintaining a solid professional network is vital in any industry, but it's essential for recruiters. Attend networking events, join industry-specific groups, and maintain an active presence on professional networking platforms like LinkedIn. A robust network can help you find new job opportunities and stay informed about industry trends.
7. Maintain a low debt-to-income ratio- To better manage your finances during economic downturns, maintain a low debt-to-income balance. This means limiting the amount of debt you have about your income. Focus on paying down high-interest debt, avoiding new debt, and living within your means.
8. Develop a long-term investment strategy- Instead of relying solely on savings, develop a long-term investment strategy to grow your wealth over time. Consider working with a financial advisor to create a diversified investment portfolio that suits your risk tolerance and financial goals. This will help you build wealth during prosperous periods and provide a financial cushion during downturns.

The pros of good career planning will able you to enjoy and maximize recession periods and even wait for them to make some of your dreams come true, like taking off to travel the world, learning new skills, write a book, do PHD or just lying on the beach... and much more!

Recruiting is a seasonal profession - Smart Career Planning will increase your chances to enjoy and maximize all seasons!

I love to hear your feedback and whether those tips were helpful.