Where your experience becomes your business.

Knowledge Capital Needed!

In addition to ever-increasing Baby-Boomer retirements, millions of Boomers were downsized in the recession and are now unemployed. Most firms will not re employ them, and many Boomers have simply given up on becoming fully re employed at their pre recession incomes doing the types of work they used to do.

Knowledge Capital Needed!As discussed in the February 19, 2012, “60 Minutes” show, there is now discrimination against the unemployed! Many job postings clearly state that only “currently employed” individuals will be considered.

There are four parts to why a strong need for consultants exists at this time. The first two parts, retirement and unemployment, are only the beginning. The third part is that many Baby-Boomers and Gen Xers, after months of searching for a new job at the previous levels of income and job responsibilities, chose to accept underemployment. (Underemployed means not doing work that makes full use of skills and abilities and not being paid an income equal to or more than previously earned.) Many very talented folks are making far less money than they did prior to the recession. This group MAY OR MAY NOT have less responsibility. In either case, this group tends to feel very unfulfilled at work.

This leads us to the fourth part of the equation, the unengaged workforce. To put it bluntly, many talented professionals hate their jobs. We have found three main reasons for these feelings:

1) When the recession began, some who did not lose their jobs did accept pay freezes and loss of substantial benefits. In addition to frozen incomes, at work they were forced to do “more with less” because they did lose coworkers. Over time they have become overwhelmed and stressed due to the economic pressures and the sense of being “put upon.” They feel a bit used, if not burnt out.

2)  After losing their jobs, some found other positions doing similar work for much less pay. These folks tended to believe “if I can only prove myself, then they will see my value and pay me more fairly.” What tended to happen is that they did prove themselves (and many times as a "thank you," they received more work!) but did not receive significantly increased wages. One person 
I spoke to told me, “all it did was confirm how big a bargain I am, and now I am killing myself in the process.”

3)  After losing their jobs, others found work that really did not excite them or leverage their years of experience and know-how. This group is just plain bored.

A new kind of “brain drain” is occurring. Businesses are going to experience an exodus of talent. As many as two million workers a month are leaving their positions voluntarily. These folks are finding new work where the grass appears greener.

This exodus will only help independent consultants who can bridge the gap of lost knowledge capital. Businesses will increasingly demand “just-in-time” experience to fill this void. With employers leaving due to retirement, burnout, and other career opportunities, the market for independent talent will boom.

This article is an excerpt from Buddy’s latest book "Experience Matters: How to Succeed as a Consultant in Today’s World." To download your free copy of the full version CLICK HERE.