Downsized, displaced, in transition, on sabbatical…there are so many ways to describe joblessness and too many highly qualified investor relations professionals out of work right now. Many want to work in IR again and the fear is that the jobs won’t be there until the economy recovers. The job market is tight across the board, with unemployment at 6 percent in the US, the highest level in a decade, and closer to 7 percent in major cities. White-collar workers have seen their jobless numbers double in the last two years and 40 percent of today’s unemployed are classified as professionals.
‘Our profession has been profoundly affected by what is happening in the marketplace,’ acknowledges Sara Gori, IR director for the Mony Group and co-chair of Niri-New York’s professional development committee. ‘We hosted a free career event earlier this year for members in transition. Initially planned as an intimate roundtable, the response was so strong and the need so great that we quickly converted it to a three-hour workshop with guest speakers and time for networking. Unfortunately we had to limit registration to 70 people due to space constraints. There are a lot of qualified professionals looking for work.’
In-house IR positions have usually been eliminated because of broad staff cutbacks, consolidation of communications functions or elimination of the IR function due to delisting, a merger or budgetary constraints. On the agency side, there has been a substantial decline in billings over the last few years; and those agencies that still have a healthy client base are mostly charging a lower hourly rate for IR services.
‘Agencies are ready and willing to support their clients, but if a client’s management team doesn’t want to talk to the Street, or if they are cutting budgets across the board, then it is hard for them to justify a monthly retainer,’ explains one IR agency executive. ‘If they maintain the retainer, they are expecting to receive services that would once have been considered additional project work.’
Facing the challenge
However widespread and understandable the reason for it, unemployment is almost always traumatic. Career placement professionals warn that a serious job search is a full-time job and there is no ‘magic pill’ for finding work. There are, however, ways of taking control of a very difficult situation while still acknowledging the range of emotions that come with losing your job.
‘Regard your transition as a problem to solve and an opportunity to exploit,’ suggests Tammy Jersey, a recruiter with Spencer Stuart, speaking at the Niri-NY career workshop. ‘This is your chance to take stock of yourself and find the right fit. You must develop a strategy and set goals. Take the time to know your audience so you can present yourself as a solution to their needs.’
Job searching in a bear market is tough. ‘This is the worst environment I’ve seen in over 25 years,’ says Gail Fletcher, a senior IR practitioner who is currently looking for work. ‘My sector is small-cap, and companies this size are tough sells for starting in-house IR efforts, or even retaining outside help. Established IR agencies are cutting their retainers and doing project work for new clients in lieu of retainers.’ Currently Fletcher is applying for unpaid internships to fill the lengthening gap in her resumé. She is optimistic, however, that the cycle will turn in the fourth quarter of 2003.
Customize your resumé
The competitiveness of the current marketplace can be overwhelming. Many employers have narrow definitions of what they are looking for and use a pre-screening process to cherry-pick candidates based on a few key words or specific job elements.
‘Many employers and recruiters will only consider candidates that meet 100 percent of the job specs, such as industry experience,’ notes Rich Hantke, a job-seeking IR professional with a background in finance and accounting. He says such a company could easily miss a highly qualified candidate who may be a better fit with its culture – ‘Someone who has the tools, including the ability to learn a new industry,’ he says. ‘That person would bring fresh ideas along with fresh analyst and investor faces.’
One way to combat an overly competitive market is to include career highlights at the top of your resumé, showing the full range of your talent and background. Remember, while some companies are looking to integrate their communications programs, others want the IRO to be tied directly to finance. So it’s important you research what each company or agency is looking for in their ideal candidate. This may involve calling peer companies or agencies to get a sense of exactly what is needed.
‘Try to determine in advance, via your own search, what the hot buttons of each opening consist of then tailor your resumé accordingly, underlying your strengths to fit the hiring company,’ suggests John Luce, founder of Connecticut-based Hearthstone Group, an executive search firm. ‘Always stay within the bounds of truth but highlight your multiple strengths in such a way that your skill set for the particular job will not be buried deep in the resumé.’
If customizing your resumé for each position you apply for seems like a logistical nightmare, consider keeping the body of the document consistent but customizing the list of qualifications to show how your credentials can benefit each potential employer.
Networks & buddies
While on the job search, it’s important to stay informed about industry trends and all the new regulations affecting IROs. There is no excuse for not being up to speed on key investor relations issues such as the Sarbanes-Oxley Act or Reg FD. ‘Keeping current with the ongoing changes in the financial and regulatory landscape is critical,’ says Jim Huseby, a senior IRO in transition. Huseby stays plugged in by attending association events, keeping up with the industry and financial press, and networking.
Networking is of course an essential step toward rejoining the workforce. ‘The process of networking is tough to initiate, but ultimately it’s fun, and it’s very helpful,’ advises Huseby. ‘Bouncing ideas off of people and letting them know you are available and what you are doing goes a long way. It helps you out and keeps that person in the loop.’ Professional contacts can also be a source of support through the transition time.
‘Networking has helped tremendously; it’s tough at first but it becomes easier as you become more comfortable explaining your situation and asking for advice – aka help,’ agrees Hantke.
Many job seekers are turning to a ‘buddy system’ to stay on track of the job search. This requires more of a commitment than networking, but can make a difference to someone who feels isolated and misses the group dynamic of an office. By communicating regularly and encouraging your efforts, a buddy can keep you focused and motivated through difficult times, even if you’re in different fields. You can also test out your interview skills with each other. A career coach might serve the same purpose; check out career-counseling networks like the Five O’Clock Club (fiveoclockclub.com).
Consider alternatives
‘When you are in such a tough job market and you don’t have the luxury of being able to retire, you have to consider alternatives to your chosen field,’ says one senior practitioner. ‘It is not necessarily a decision made by choice but rather by necessity.’
Current market conditions make it easy to justify a short-term gap in a resumé or a position far from your dream job. Volunteering or mentoring can be opportunities to expand skills and make new contacts. Temporary positions can introduce you to new organizations and business cultures. The best alternatives depend on your background, though there are proven transition successes in areas such as treasury, financial analysis, corporate communications, public relations, strategic development, media, marketing and client services – perhaps with an IR-focused vendor.
Remember that any successful career change is bound to take time and include a transition period. An open-minded attitude allows you to take control of this time. Then, once you are gainfully employed, the skills you developed during the transition will allow you to manage your career on a regular basis. In this crowded marketplace, ‘Your brand, acquired reputation, unquestionable integrity and excellent references make a huge difference,’ advises Luce. ‘Always keep past successes and contacts intact and prepared to go to bat for you.’
