All Those Advanced Degrees and Other Sunk Costs - Too Often, a Loser's Game

 "I worked hard for that MA."

That's what one former middle manager blurted out, shocked. They had come to my intuitive coaching service to unretire. I had advised deleting that advanced degree from job-search materials. Already they had strikes against them: age and years with no work history. The MA could send the signal that they would expect premium compensation and other kinds of special treatment. Also, in no way was that particular MA related to the skills they could pitch.

This situation represents a current common example of trying to protect sunk costs. Yes, earning an advanced degree required hard work, at least a year or more of one's life, angst and a financial investment. But in this current labor market, with some exceptions, it could be a loser's game to protect that sunk cost. You may never work again. And meanwhile you're getting older, therefore as Pro Publica documented, less marketable. 

But the higher education piece is just one form of sunk costs. Others include:

Salary and benefits. The next position, after a layoff, might pay less, often significantly, with fewer perks. According to Pro Publica, if you are over-50 and do land another job in your field after losing your former one there's only a 10% chance it will be at the same compensation. Some income is better than no income. Think of this as a "parking" strategy to use as you put together a next.

Years in a career path such as content-creation or teaching literature at a university. Yet there are declining opportunities in those niches. Staying in that space can mean missing out on a reset for where demand is growing. Despite how difficult it is, the smart move is toward a way of earning income which has a future. At least for four or five years.

Personal branding. You have become known for your thought-leadership talks on progressive matters. Yet, where you can find work has a different point of view. Best to walk away from that kind of credential, at least currently.

Network. Over the years you've created high-level contacts in your field. However, your sector is contracting and you're now unemployed. Rather than nurturing those relationships you have to start over in making connections.

Material assets. You have a condo or house that had been appreciating in value but not anymore. To accept a job in another location you might have to swallow that loss. 

Yes, there are strategies to protect sunk costs and still survive financially. During The Great Recession jobless junior lawyers I coached grabbed onto survival jobs. At the time Paul, Weiss was one of the few law firms which didn't conduct massive RIFs (reductions in force) of associates. The new chair had confidence in the ability of the firm to weather hard times.

Having a job, any job, was necessary in order for young lawyers to pay the monthly $700 on student loans. But simultaneously some did pro-bono assignments and gig work to keep up their skills. A few enterprising lawyers talked their extended family into sending paid legal work their way. 

Incidentally in applying for non-legal jobs most reformatted their resumes to be able to leave off the JD. That entailed filling in the gap for those years in school. That kind of degree tends to scare off employers not hiring for legal whatevers. 

It's not unethical to delete degrees. Adding on those which don't exist is what's unethical. 

When my sector collapsed post-9/11 and I needed a survival job, I left off all advanced degrees and graduate-level course work from job-search materials. In the first interview I got I withheld my vast knowledge of business. That was for a security guard position in a big box. I was hired on the spot. Smirk. I had done graduate business school studies. I had to let go of the sunk cost in acquiring such an extensive knowledge base. Those courses weren't cheap.  As the old adage goes, work gets you work. Within a year I was starting up another enterprise.

Success is a mental game. Failure comes from being done in by the “committee” in your head.

Together, we liberate your thinking. Then we change your story. And, unleash success.

Intuitive Coaching. Special expertise with transitions, becoming a solopreneur and aging. Psychic/tarot readings, upon request. Complimentary consultation with Jane Genova (Text 203-468-8579, janegenova374@gmail.com). Yes, test out the chemistry. Zero risk.

Don’t give up before the miracle.