GUEST COMMENT: Don't give up hope

14 October 2008

3 minute read

As I watched the television pictures of bemused and worried staff leaving Lehman Brothers' offices on the day it collapsed, I was struck by a comment one senior banker made to me: "They won't know it for a while yet, but for a lot of them, this will turn out to be the best thing that's happened to them."

What could have prompted him to say such a thing? His own personal experience for one thing. Being part of a large firm that collapsed several years ago caused him to re-evaluate what he was doing and, as a result, he has ended up in a smaller firm where he is much happier.

So, is there light at the end of the tunnel for the many financial services workers being impacted by today's problems? I believe the answer is "yes". Experience of previous bear markets and economic downturns has shown that these times when the world seems to change beyond recognition often throw up new opportunities. The period that followed 9/11, for example, saw many investment bankers who had specialised in small and mid cap stocks lose their jobs as the major houses withdrew from this market. Within a short space of time, however, the gap had been filled by the rise of a large number of smaller, independent broking houses and M&A boutiques, all keen to hire good quality talent.

Turbulent times such as these will also bring opportunities in related areas. A range of organisations will need to think about hiring staff with relevant experience as they grapple with the consequences of what we are seeing - organisations such as regulators, litigators and insolvency practitioners, for example.

I wouldn't want to understate the trauma that many employees will be suffering as a result of the recent events in financial markets, but the message is "Don't give up hope". You may need to think laterally about your career direction and be patient, but experience shows that new opportunities will arise at some stage. For some of you, the end result may be a decision that your future lies outside financial services - but if you end up being happier in the long run, is that necessarily such a bad thing?

Stephen Lockley is a partner at the corporate finance advisory firm, Wyvern Partners. In a career spanning almost 30 years, he has witnessed at first hand many economic and market downturns, as well as the subsequent recoveries.

AUTHORStephen Lockley

Insider Comment

Ma
Masterson
24 October 2008
Bravo Stephen! Your optimism confirms my personal experience of having been laid off four times over the course of a 25+ year physical commodity and energy derivatives career. Each time I have ended up with more interesting jobs...and higher paying!
Now I'm a patent-pending inventor for a different kind of risk management: helping people avoid back injuries. We won Popular Mechanic's Top 13 Tools of 2008 at the National Hardware Show - who ever could have guess THAT would come out of the Enron bankruptcy? (I was at El Paso when they laid off 42% of the workforce in 2002, and then got married for the first time at age 48.) Many good things can come of being laid off, even though layoffs are undeniably painful. My recommendations: (a) Read "Good Grief" by Westberg (it DOES feel like you're losing your mind, but we must grieve the loss of the dream of our lives as we envisioned) and (b) keep praying!
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Be
Ben Johnson Volpone
15 October 2008
Most IB's with more than 8plus years work should not have to work again if they haven't wasted all there comp.It was a sweet business do little get lots.let's get real,it was bank robery by he employees.
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Ni
Nik
15 October 2008
The essense of the article is not utterly untrue, but one needs to take into account that job seeking is a painful process, not an amusement park.
There are absolutely no guarantees at all that laid off staff will happily end up in a better job, that only applies to the lucky ones.
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Le
Lewis
15 October 2008
In the late 80s I was back office staff at the last stock market crash. My fellow managers refused to accept lower pay. I took contract work as and when I could wages were not great I got by.Fellow managers fell by the way side.
This time around now 54 times as Bob Dylan said are a changing. fewer contract jobs more competion from younger people this year and on are going to be more of a challenge than ever before. So dont give up hope rings a little hollow just now.
I think I live in the real world allways have done.
Sadly while in the big smoke I was not one of the big bonus boys I was happy to do my job for a reasonable wage and happy to do so.
Steven Lockley I am sure will keep his day job the rest of us back office staff will not be so lucky.
I am of to do the lottery as much chance of a win as getting a new job.
These cycles come and go every 20 years or so 5 years from now we will wonder what all the fuss was about.
Been ther before got the T shirt etc
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Kr
Krypton
14 October 2008
The thing that makes losing jobs such a nightmare is the cost of living in London. Anyone who has been working in investment banking can reasonably afford to have some sort of decent life in such a horribly expensive city. When you lose your job and your partner is raising the children, London becomes a very expensive place. Let's face it, other jobs don't pay as much and it becomes a struggle to have a good quality of life. Why not move out of London? Yes, but then commuting becomes a problem and uprooting a family and yourself is always very difficult. People deep down become "accustomed" to London and want to maintain the status quo.
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