Insider Q&A: John Challenger

NEW YORK - More than 2 million jobs disappeared from U.S. payrolls over 2008, and many economists say the worst is yet to come. John Challenger, CEO of job placement consultancy Challenger, Gray & Christmas, says workers who still have jobs should be extra cautious as they test the market. Those without work, though, shouldn't get discouraged.

AP: If I still have a job, how scared should I be about all these dour job-market predictions?

Challenger: This is certainly a time to hold tight to your job. Make a point of repairing any damaged relationships you have with your boss or others. Build relationships beyond your area, with your boss' boss. Your boss is as vulnerable to a layoff as you are.

Work at being the in-house expert at certain things, where there's no real backup. Find a task that no one else does. So if they were to think about laying off, it would be difficult to let you go.

It is a good time, if you (often work from home or) on the road, to get more face time. It's good to be working early or late, or both, if others and the boss are doing that. The risk's up, so you should be taking precautionary measures.

AP: Should people abandon hope of retiring at 62 or 65?

Challenger: The idea that retirement is somewhere in the early 60s or mid 60s is outdated and no longer appropriate for companies or for people. Not only has the market wiped out a significant portion of retirement wealth, meaning you need to have cash flow going for a longer period of time, but health care is likely to become more dicey and difficult to pay for.

AP: How tough is it to get into school or a re-training program now?

Challenger: Applications are growing. I think for most people, other than those in the early part of their careers, you have to think seriously about whether you can take the double hit of paying (tuition) to go to school and not bringing in income. My recommendation for job seekers is: Go to school at night if you're going to do it, but don't go back full time unless you're in the early stage of your career.

AP: Say I have a steady job now, but don't really like it, would it be dumb to look for a new one?

Challenger: There's no downside to looking; you need to be discrete about it. But I think you also have to be more cautious in making the move, because you are a known quantity at your current company. When you go to a new place, you have fewer relationships, fewer people to protect you. You're out there a little bit and more vulnerable. You can go to new company and be the last in, first out if there's a layoff. Unless you're feeling (like your current job) is in jeopardy. Then you have nothing to lose (by going to a new job).

AP: If I'm one of the lucky few to find a new job, can I ask for the same salary I would have a year ago?

Challenger: Of course you can ask. What you don't want to do is try to set some salary bar in the early stages of an interview. You may set it too high, too low, and they may discount your candidacy. Be patient about compensation. Make sure not to try to negotiate for your salary before the offer. Once you have it, try to get the best you can.

AP: How else do job-hunting strategies change in a recession?

Challenger: You want to be more open to changing locations to broaden your audience. Change industries. If you're in accounting, that doesn't mean going into sales. I'm not in favor of trying to do something brand new, because then you go back to entry level. But if you came from an automotive company or bank, there's nothing that says you can't go (do accounting with) a health care or food company.

AP: What mistakes do you see people making most often?

Challenger: I think it's people believing the headlines too much. They're convinced that, on a global basis, there are no jobs and getting discouraged, so why look? That's self-fulfilling and defeating.

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