One of the often quoted arguments
in the press has been the talent
shortage with the regulatory
authorities (may it be SEC, Federal
Reserve, Treasury Department or
other overseeing bodies) overseeing
the US financial system. After all, the
argument supporters argued, the best
of the talent was with the investment
banks and other banking giants, who
in their drive to bolster their bottom line, were always after financial
engineering or coming out with
innovative financial products.
However, the regulatory authorities
were behind those financial
innovations bereft of the necessary
talent to detect the possible
wrongdoings. Is there a merit in this
argument?
Yes. Government service has not
attracted the best and the brightest
over the past several decades. In
addition, the flow of the highest
intellects to financial service has
taken talent away from key roles in
science and technology, quite likely
reducing the innovation potential in
the economy.
What is your assessment of the
possible impact of the US Financial
Crisis on the midlife careers of
millions of employees across the
globe, let alone US? Do you think that
the financial crisis would have
advanced all the unpleasant
experiences that would normally
have come at a later stage?
Although everyone in the workforce
is feeling the pinch of today’s difficult
economy, of the three major
generations in the workplace today,
midlife employees – those in
Generation X – are almost certainly
facing the most difficult challenge.
Many Xers are carrying significant
financial burdens – old school loans,
mortgage payments, child care
expenses, and other ‘adult’
responsibilities. Today, the average
debt held by Gen Xer households is
double the debt held by boomers at a
comparable age.
Even before this past years’ economic
decline, Generation X had become the
first generation to have lower net
worth than its members’ parents did
at the same age. Xers bought houses
when prices were high, driven up by
a huge bulge of home-buying
boomers, and assumed large
mortgages; many today have negative
home equity. Xers’ overall net worth
fell precipitously over the past decade even prior to this year.
And, Xers are entering what has
historically been the ‘big spender’
phase of life. The highest levels of
spending typically occur between the
ages of 46 and 50 – when people
would normally move up to larger
homes, furnish those homes, and
send children to college. The
financial pressures Xers face will only
mount.
Bottom line: the key challenge for
Xers today is to remain gainfully
employed through a time when layoffs
will almost certainly continue to
be a day-to-day reality in many
organizations. In a downturn, rather
than trying to tighten control and
hunker down, the best path forward
is to find ways to help your
organization succeed – to become
more spontaneous, innovative and
reflexive. Don’t fall into the trap of
thinking that if you lay low and keep
out of sight you’ll be safe, the best
approach in difficult times is to step
forward – to lean into the challenge.
