We like to imagine that our professional decisions are influenced by things such as passion for work, long-term goals, and the search for meaningful work. However, when we are facing financial difficulties, we can be influenced by the immediate need for stability. Therefore, financial stress can steer career decisions.
There is a scenario that so many people have found themselves in, and it is a very worrying place to be. They have found themselves staring at a job listing, or even at their laptop for that matter, late at night, while the house is quiet and the only sound is the hum of the computer. In this scenario, the applicant is wondering if they should apply for the job, and by apply for the job, I mean immediately apply for the job, regardless of whether it is a terrible job and a horrible place to work, because rent is due.
Honesty Time. I think we have all at some point or another considered applying for a job that we know we’ll hate, all because of financial burdens. Recognizing this in yourself is half the battle of regaining control of your career.
The Shift from Long-Term Vision to Short-Term Survival
When money is tight, your mental bandwidth shrinks. This can put you in a “scarcity mindset,” or, as psychologists call it, a state of being focused on the here and now to alleviate your immediate financial concerns and get back to a state where you can think about your long-term goals and dreams.
By the time they start work, many people are just trying to meet their immediate income needs. This can result in their taking a job that will bring them a basic income and which has few prospects for advancement and no relevant requirements. It will be a means of providing for their immediate needs. The person will not have a chance to evaluate the role in terms of his or her long-term ambitions or the well-being that the job will bring.
Survival mode changes everything.
People who are living paycheck to paycheck from one week to the next are in a constant state of reacting to the immediate demands of their circumstances. Consequently, the choices that they make today in their search for a new job, for example, will often solve today’s problems but create new ones for tomorrow.
Why People Stay in Unhealthy Work Environments
When you are struggling to get by, every role will seem like a good option. But the reality is, many people stay in roles for way too long, exactly for the reasons outlined above. The problem is, as we know, it is actually very difficult to leave a role when you are struggling to get by, because we need the financial support of our employment to be able to leave our current role.
How many talented employees are stuck attending meetings that fill them with dread, getting stomach pangs, because they can’t afford to take one month off from work?
One might believe that employees in poverty can leave their poor jobs, but it seems that for them, it is not that simple either. For those employees who fear not having enough to cover expenses for one month, it is impossible to take the risk of resigning from their jobs even when they have the perfect job offer.
Another consequence of financial stress is employees carrying the stress of their financial situations to work. This creates an extremely unpleasant work environment, where despite having talent and wanting to contribute, employees feel trapped and anxious due to fears of missing a single paycheck.
That is the hidden cost of financial stress on a person. It erodes their ambitions until they are just trying to stay safe in their jobs.
Accepting Offers Below Your Market Value
Employees struggling to make ends meet have accepted offers below market value for jobs in order to secure immediate financial relief. They also risk becoming trapped in roles that do not utilize their full skill set and stifle their career advancement in order to make ends meet.
For instance, the total compensation offered may not be in line with industry averages. Fear of missing out on the opportunity to accept the offer (due to the urgent nature of pending bills) can prompt candidates to hastily agree to accept less than what they are truly worth. By committing to accepting less than their market value, employees unwittingly risk setting a wrong precedent that will impact their future salary negotiations for years to come.
We acknowledge that people do accept offers below their market value, but that’s usually only when they are in financial desperation.
Also, when you accept less than you’re worth for a long period of time, it can be detrimental to your self-esteem. You can start to feel that you are not worth as much as you thought, especially when you start your new job feeling undervalued already.
Managing the Pressure and Retaining Control
Even when financial stress is dictating your options, there are various ways you can regain perspective on your career and keep money from becoming the driving force behind your working life.
Build a Temporary Buffer
Stabilizing your immediate monthly expenses can have a massive impact on how you look at job offers and the compromises you are forced to make. Lower interest rates, debt consolidation, or securing flexible personal loans online can help fund your career. As long as you can manage to cover the bills that you need to pay immediately, you can begin to think more clearly about what you are doing.
Separate Immediate Income from Long-Term Goals
This temporary funding source for your life and your career can, in the meantime, be used to build skills, make contacts, and hunt for other jobs during working hours. And by the way, in the meantime you can also look into other ways to generate a higher income. But by recognizing this temporary funding source for your life, you will not immediately get stuck in a job that is not good for you.
Focus on Strategic Networking
Find alternatives to taking time off to keep interviewing. Network strategically with contacts from previous roles, attend relevant events, and participate in online communities and forums.
Finding Balance in Your Career Path
Financial pressure on workers is a reality that can impact anyone at some time in their working lives. Once recognized, such pressures can influence decisions taken in an attempt to maintain career goals and prevent panic-driven decisions. By recognizing the pressure and taking steps to meet personal financial requirements, individuals can continue to meet their career goals without being deflected from their objectives.