Thursday, February 16, 2012

Supplementing your Income while Searching for a Job

Aside from the blow to self-esteem and morale, the financial loss of a paycheck every 2 weeks is a significant issue for anyone who has experienced a layoff. Unemployment benefits can provide some relief, but averaging about 36% of the individual’s wage it does little more than cover the basics or essentials. In the recent past the length of unemployment benefits was 26 weeks. In 2009 Congress extended benefits considerable when it passed the American Recovery and Reinvestment Act, This act actually allows many people to collect benefits for up to 99 weeks. While this is a nice subsidy that helps the unemployed to have some security while searching for a new job, it also is only roughly one-third the normal compensation they are accustomed to. At some point, especially in job searches that drag on for extended periods, job seekers need to decide whether it is worth continuing to receive reduced income, or venture out and make more in a short-term capacity while they continue to search. The following are 4 of the most common alternatives I have seen job seekers pursue while also continuing a job search:

Freelancing

Although freelancing can also mean someone who is represented by an agency or company (see next 2 sections), for this purpose it is intended to describe self-employment. The benefit is that you can dictate the hours you work and charge by the day, hour, a piece rate, or on a per-project basis in an area of expertise or strong experience. It also allows flexibility to continue to search for a full-time position, particularly when it comes to interviewing. There have been a number of freelancers I have observed in this current economy who started out with the intent of concurrently searching for a new job, but had business from their freelancing activities take off to a point that now they do that full-time.

Interim / contract jobs in your field

The biggest difference between this category and freelancing is that these jobs are obtained on a short-term basis in your area of expertise with the company directly, or through an agency. The disadvantage can be in not being able to control your time the same as is freelancing, but one big advantage I have seen many people be able to do is parlay these commitments into full-time positions.

Temp positions

Temporary work may be full-time or part-time, and are normally obtained through an agency. One of the biggest differences from the preceding is that temp work can encompass a wide-range of positions outside your particular area of expertise. All of these categories from a definition standpoint overlap to some degree, but for illustration here the temp positions I am speaking of usually require less skill than freelancing or contract positions, and thus pay lower as well. A nice perk to temp work though is that many people have made nice, and flexible, careers out of temping. If they don’t want to work a particular week, they don’t. This same flexibility is nice in scheduling interviews or meetings while on a full-time job search, and temp positions can become full-time positions if you and the company deem that both sides make a good fit after the trial period.

Part-time work in other sectors

One of the most common types of short-term capacities I see is in food services or retail, although many other sectors are encompassed also. Like the others, flexibility and shorter work durations are key for allowing for a concurrent full-time job search.

I believe one of the unlisted benefits of each option is the stress alleviation (not all, but some) provided to job seekers. One last option that is worth highlighting is volunteer work. The grind of a long job search can make one feel deflated and defeated. Above all, there have to be ways to keep positive while facing rejection or disappointment. Volunteering is a tremendous way to do. Seek out opportunities to volunteer in a capacity related to your area of expertise, or with a non-profit. The possibility to network with other professionals exists, and doing good things to help others is a form of positive karma.

One last thing I want to mention for the job seekers who find themselves getting beat up out there is that job search support groups do exist out there. A link to a useful list of such can be found here

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