As fears of a worldwide recession rise, a number of IT businesses have announced major layoffs and hiring freezes in an effort to reduce spending.
“This news is discouraging enough to cause anxiety, forcing professionals to go above and beyond to keep their jobs,” said Aleksandr Volodarsky, CEO of Lemon.io, an online freelance marketplace for software developers.
Diversify income streams
According to Volodarsky, the “best anti-crisis strategy” is to not depend solely on a single source of income.
“Ideally, look for gigs in different verticals, geographies, and skill sets to diversify your income portfolio and minimize risk. If one of your gigs shuts down, you’ll have a much easier time finding a replacement for, say — 30% of your income rather than losing everything all at once.”
However, there are further choices than freelancing and working multiple jobs.
Volodarsky continued, “You can always find a company that offers you multiple projects rather than just one, thus minimizing risk while still staying in a more comfortable work environment.”
Participate in the gig economy.
The freelance sector continues to expand as more and more individuals want flexibility and independence in the workplace. According to the freelancing site Fiverr’s 2022 Freelance Economic Impact Report, there will be over 6 million independent professionals in the United States by 2021.
The report anticipated that “This workforce is estimated to have earned $247 billion in revenue in 2021, up from an estimated $234 billion in 2020.”
Volodarsky stated that the rising need for nimble workers presents the “perfect opportunity to escape corporate slavery” and boost earning potential without quitting or switching jobs.
“If you do leave the corporate world, don’t worry about having to spend an incredible amount of time building professional reputations before getting your first cent.”
Keep an eye out for “signs of trouble.”
In light of the gloomy prognosis for the remainder of the year, venture capitalists are advising their portfolio companies to prepare for more difficult times.
And some new businesses have taken action.
For example, Swedish financial powerhouse Klarna, which became Europe’s most valuable fintech unicorn in June when it was valued at $46 billion, said last week that it plans to lay off approximately 10% of its global employees.
“They are VC-backed companies that burned through cash … fast-tracked hiring and counted on VCs to keep pouring in cash. Now that the situation has changed, they’re forced to cut back,” Volodarsky said.
“Always triple-check the companies you work with, as you can often see the signs of trouble in massive spending, and consider bootstrapped businesses that are conscious about their funds and transparent about their profits,” he advised.
Invest in your skills
Volodarsky stated that there are abilities that are in high demand even in the most difficult of times.
“Every crisis is an opportunity.”
Volodarsky suggests conducting research on trending talents and consulting with human resources or team leaders to “find out how to become a valuable asset.”
“Employers appreciate and promote talented staff members who are eager to learn,” he continued.
I believe the majority of CEOs are hedging their bets on extensive hiring due to the impending crisis. Large technology corporations are exhibiting signs of a slump in anticipation of a decrease in demand.
I suppose salaried employees can make the required adjustments before the recession comes. In the next recession, investing in your talents and entering the gig economy are two of the greatest alternatives. The gig economy provides you with the cash you need to survive while investing in trendy skills creates an entirely new door for you to change careers. These are the best choices for a recession-proof in your career.