The Godfather’s Layoff Lessons

This month several executives asked me, "Godfather, what is the best strategy for a downturn in the economy?" Glad you asked! I’m a bit of an expert at that since I lived through 2008 and 2019. Executive hiring went off a cliff the last 30 days; down 75%, so 2023 is looking very challenging. Here are a few of my tips.

• Your Job Does NOT Define You – Let’s start with the most important advice of all. God, family and friends.?Everything else is a bonus. Yes your career is important, however at the end of the day it’s just a job.?Your peers won’t be at your funeral and your Boss won’t be giving the eulogy. If you keep this in mind, you won’t be devastated by a layoff. Trust me, there are always jobs for talented people.?Move on. Lesson: Your job does not define you.?
• The Company Takes Care of the Company – The days of 30 years and a gold watch are over. When Depression 2.0 hit in 2008, Las Vegas employers laid off 20,000 employees in a week. If you remember nothing else from this article, remember this: The company takes care of the company.?I’m not judging or criticizing, just communicating the reality of the situation. Never say, “It won’t be me.” You are not indispensable. If you die tomorrow they will replace you next week. Lesson: View yourself as a consulting company of one that just happens to be on someone’s payroll. Always take care of YOU.?
• Maintain a Professional Network – At $100,000+, roughly 85% of career opportunities come from your peers. If you stick your head in the sand, and then start rapid dialing people when you get laid off, no one will call you back. “But Godfather, I’m not very social. You are a Master Networker.” Not true.?Other than charity events and my personal client mixers, I don’t go out. But I do take several appointments each week. But I do call a few people every day and email fifty more. Lesson: Stay in touch with your peers, because relationships trump talent.?
• Executive Recruiters – The same goes for Executive Recruiters. Always maintain one or two solid relationships. When the layoffs commence, Executive Recruiters will be 100% focused on assisting their friends. The best Recruiters work exclusively by referral; they don't take cold calls. There are two Golden Rules of Recruiting.?First, Executive Recruiters get people for jobs, not jobs for people. Second, the wrong time to meet an Executive Recruiter is when you are unemployed. If you don't know a Recruiter that specializes in your industry, ask your peers for a referral. Lesson: Have a strong relationship with one or two Executive Recruiters.?
• Be Prepared! – I was fired exactly one time in my life.?To make matters worse, I carpooled that day, so I had to sit outside on the curb with a cardboard box of personal possessions waiting for a ride. I swore then and there to create a rainy day fund with 12 months of free cash flow. You must have at least six months of free cash flow to cover your bills in case you get laid off. “But Godfather, I can’t afford to do that.” Actually, you can’t afford not to. The government is not going to bail you out again. Stop buying a $10 Starbucks every morning. Scale back on the fancy $500 dinners. A rainy day fund gives you time to decompress and find the right next step in your career. Along the same lines, clear out all your debt. Debt is a parasite! You would be shocked how many candidates come to me in financial distress. They bought houses they can't afford. They are buried under massive credit card debt. They need a job NOW or their house in is foreclosure. Lesson: Always have a “Go Bag” (cash) and keep debt to a minimum.?
• What is Your Purpose – Today is the perfect day to start thinking about your purpose.?Why are you here? It’s certainly not to work 100 hours a week. What is your legacy??How will you be remembered??These are the BIG questions. I highly recommend the book “Half Time” by Bob Buford.?Bob says the first half of your life is about careers, houses, cars and money.?But at some point you reach half time and start asking yourself the big questions about purpose, legacy and life.?When the Pandemic hit, millions took the time to reconsider what’s important in their life. Then in 2021 47MM people quit their jobs.?What is The Godfather’s purpose? To help my friends with their careers, and use the revenue to support a dozen local and national charities. Lesson: Consider the big questions – purpose and legacy.