What is “Career Cushioning” exactly?

Layoffs are looming: More than 70% of HR leaders are planning for or considering redundancies within their organisations before the end of 2024. The tech sector alone has already seen over 124,000 people let go since the beginning of the year.

The increasing job market volatility and economic uncertainty across many industries has led to the latest trend on platforms like LinkedIn and TikTok: “Career Cushioning.”

The good news? Unlike its contemporaries “Quiet Quitting” or “Lazy Girl Jobs”, Career Cushioning isn’t the product of disengagement at work, but rather uncertainty over the prospect of having a job altogether.

So, what is Career Cushioning exactly? And is it a passing fad, or a long-term disrupter that organisations should be concerned about? Read on for our deep dive.

What Is Career Cushioning?

Career cushioning describes the growing trend of professionals taking proactive steps to safeguard their careers in times of uncertainty. It’s a lot like building a financial safety net in anticipation of economic crisis by diversifying your portfolio and spreading risk. People who are cushioning their careers are preparing for potential instability by upskilling through online courses, networking, and staying informed on industry trends, regardless of whether this is required for their current role. For some, it may even involve discreetly exploring new job opportunities.

The goal? To be ready for unexpected changes and ensure a smoother transition if their job security is threatened. With 30% of professionals – around 12.7 million workers in the UK – actively seeking new roles while employed, addressing the root causes of career cushioning is an opportunity to reduce turnover and boost engagement.

What can you do in response to career cushioning?

Research shows that 70% of professionals experience stress in their roles, with Millennials and Gen Z leading the charge in adopting a career cushioning mentality. Individuals aged 25-44 report the highest stress levels – averaging 12.4 days of stress per month.

Recognising that stress and uncertainty sit at the root of career cushioning helps us get to the heart of how to engage with individuals who are investing their time in a contingency plan, new skills, and professional connections to navigate the next steps confidently.

Here is what you can do:

Invest in your line managers

Line managers are often the face of your organisation and leadership, for the majority of your workforce: 75% of people who voluntarily left their role did so for reasons their line manager could directly influence.

Equip your line managers with the skills to help their line reports navigate uncertainty, to grow their skills in the short term, and to construct their career development in the long term. Feeling invested in by your line manager is a strong determinant of engagement and retention. In fact, 94% of people said they would stay with their current employer if they felt their managers invested in their professional development.

People management can be a difficult role to navigate. In fact, 52% of managers believe they don’t currently have the skills they need to be exceptional at their job. As people leaders, it’s up to you to empower your line managers by giving them the skills to succeed in their role. Looking for end-to-end line manager training? The Expedition is grounded in rigorous research designed to help build your line managers’ confidence and skills.

Communicate what you are doing

Effective communication is crucial for retaining talent – companies with strong communication practices have retention rates 4.5 times higher than those who don’t.

Are you launching an internal mobility and upskilling initiative? Are you rethinking career development in your organisation to increase retention? Do you have skills training or internal development resources available to your people?

If you answered yes to any of the above, consider the next question: do your people know about these initiatives and resources? Research indicates that 59% of people claim they have never received formal workplace training, leaving many to rely on self-taught skills.

Excellent initiatives don’t make a difference if no one knows about them. So think about your internal marketing and communications strategies. Invest in these, because giving information to your people is generally better than leaving them with the unanswered questions that lead to career cushioning.

Prepare for Future-Ready Skills

Investing in employee development is key to reducing career cushioning and improving retention: 93% of professionals would stay longer at a company that prioritises their career growth.

Offering regular upskilling not only strengthens your workforce but also signals that they are valued and supported, which is critical as 44% of companies struggle with a lack of soft skills​. Building a strong learning culture can help alleviate the uncertainty driving career cushioning by ensuring employees feel prepared for future challenges.

Our 2024 Guide to Critical Skills explores a selection of skills sessions and case studies formulated by The Smarty Train’s team of futurists, learning design specialists, and behavioural scientists to help your workforce navigate uncertain and turbulent times ahead.

See how organisations like BP and a leading global assurance firm have successfully partnered with The Smarty Train to reimagine career frameworks and attract top talent by focusing on future-ready skills, flexible career paths, and innovative learning platforms.

Learn more about how Critical Skills Sessions can help you upskill your people and create a more engaged, resilient workforce: HERE.