Successful career transitions give due consideration to opportunity cost. Opportunity cost is a crucial factor in career transitions and effective career management. Applying the same cost-benefit analysis to your career as you would to business decisions can ensure you have a satisfying and rewarding career.
However, opportunity cost is frequently overridden by immediate distractions and the cost is not recognised until after the fact in hindsight, usually resulting in “if only I had” statements.
Occasionally people ask “how did I get where I am today?” as if it was some well-planned career approach. If only we knew at the start of our career what we know now! I would have sought out the advice of more experienced people and asked lots of questions, something I observe today’s graduates are much more focused on. A well thought out career strategy will allow you to stay on track even in time of high stress or uncertainty in your current work, and assist you to avoid the following pitfalls:-
Low hanging fruit
During good economic times, the low hanging fruit of an immediate job offer diverts us from searching for other opportunities. How often does a flattering call from a search consultant divert our attention. In good times, executives jump across industries without regard to the opportunity cost of losing a consistent track record of experience in one sector. In those times, people do not explore, weigh and measure alternative options. Future career dreams are discounted and given no consideration in favour of the short term and the immediate. Tougher times often provide the platform to consider alternative career options and calculate their opportunity cost and determine their viability.
The 80/20 Rule
We often totally disregard the opportunity cost when we accept a role which satisfies 80 percent of our criteria. The missing 20 percent can eventually overshadow everything including the opportunity cost of choosing it. This often happens when there is a painful urgency to get out of a situation that has gone beyond toleration. Before you pull the plug, proactively seek advice by speaking with search consultants for career perspective, colleagues or a career coach. Also consider taking a sabbatical which can often assist in regaining perspective. Many executives talk about the invaluable investment in their networks and their career during career breaks.
Ten Years from Now
Executives are often driven to think in terms of quarterly results and annual revenue. The tactical driver of the bottom line often influences their career decisions when looking to the next immediate promotion and salary and bonus level regardless of where the role leads to. There is benefit in considering the megatrends which will shape your future career. Consider the impact of globalisation, demographic shifts, the explosion of data, emerging technologies and complexity and redefined jobs. Finally, piecing together multiple gigs at the same time or freelancing in a series of contract roles is a new normal.
Adapted from Patti Wilson’s article from Association of Executive Search Consultants (AESC) Blue Steps.
Hobson Leavy is a member of AESC. Since 1959, AESC has set the standards for quality and ethics in executive search and leadership consulting worldwide.
