The job numbers have been awful. Unemployment is growing and more layoffs are coming.
There is a bit of brightness. The service industry is booming and hiring there is growing. The problem for you is that most of those jobs are low-wage. They aren't for corporate executives.
C-level jobs are disappearing. More than 40% aren't coming back and new job postings are down 11%. What can you do?
You probably are interested in protecting income and securing your career.
They guys at HIRE YOURSELF have some ideas for you...
Nat: Hey Pete, how's it going?
Pete: Oh, it's awesome, Nat. We're doing great today.
Nat: Yes, I know. I was coming to the office today, it's like a terrible gloomy, rainy day, so I thought we could cheer some people up today and talk a little bit about corporate layoffs.
Pete: Corporate layoffs, well, there's nothing more exciting than corporate layoffs, yes absolutely.
Nat: I know you've done a lot of research in this area. I would love to hear a little bit about what your thoughts are.
Pete: Yes. I'm hearing a lot about corporate layoffs, people that I know. I got a guy that works for a large oil company, literally said, hey listen, 25% of our workforce are going to be laid off, it's absolutely, I think it's starting to happen now. And then I'm working with a candidate that works for a rental car company, and literally, 40% of their workforce is being laid off or has been laid off.
Nat: So is this kind of the 30, 60, 90 days like layoff, where they're thinking they're going to come back? Are they like getting a package? Like what exactly is happening?
Pete: Yes. I think it's more so; it's not furloughs; it's like temporary layoffs. These are realistically eliminating positions, right?
Nat: Holy Crap.
Pete: And so this is kind of the storm that's coming, right? And we can talk about hourly roles, but you and I primarily work with the senior-level executives. And that's going to be how it's going to happen, is a lot of these executive roles are going to be eliminated. And that's packaged out when you're 50 and stuff like that.
And that's one of the reasons why I wrote the book higher yourself, right? Is because back in the last recession 2008, you saw a lot of these executives, the layers of management compressed, eliminated stuff like that, it was really tough to get another executive role. And so I think we're, you and I have a storm coming up here as it pertains to senior-level executives and being laid off.
Nat: Yes, I know. I remember when you and I first met, and you had written that book. And I think you're always kind of leading-edge or cutting edge with that thought process.
Because that concept of hiring yourself, versus just collecting that corporate paycheck, kind of gravy train for years and years. I think I have to give you kudos; I think you're really ahead of your time. And I know you're not the kind of guy to say I told you so, but basically, you kind of did tell us so.
Pete: Six months ago, we had very tight unemployment, right? So it was, and now the world has changed, and even the roles, you think about this is that now you don't even need an office anymore. I mean, everybody's going virtual, and I think that's going to also have an impact on future opportunities.
And you take a look at it; I mean, they're also like job postings that's down. I want to say I thought I read is like 11% or something like that; it's like crazy. So job postings are down; you're going to see more and more of this.
Nat: Yes. I was walking downtown to Starbucks yesterday, and I ran into a neighbor of mine, and he's a gentleman; I think he's probably right around 60 years old. And he knows I am involved with franchising, so he's kind of asked me, of course, what's hot and all that kind of stuff.
And he was sharing with me, he's like I have a lot of my colleagues and buddies that have basically been offered early retirement or what have you and they're taking it. But now they just don't know what to do, because it's kind of boring to be retired and probably not honestly have enough income to live the life that you like to live when you're 60 years old or what have you.
Pete: And you don't have purpose, right? I think that's the big thing. Is that if you read about living longer, you have to have purpose. And so retiring is, financially that's one thing, having enough to make it to where you need to be. But also having purpose, and so there's ways. One of the interesting stats we've always talked about is that 50% of 50 plus executives, so executives 50 years older, get thrown in.
50% of them get thrown into retirement early, so they get kind of pushed out. Now the scary number is only 10% of them, the ones that get re-employed or get another job, only 10% of them make what they made before or more. So bottom line is that it's a changing world out there.
Nat: Yes, I know. He was talking to me about because obviously, we're going through COVID right now. So it seems like he and his wife like they're like having ways to keep busy. He said I never thought we'd clean, wipe down the entire house every day. And I'm thinking, oh my gosh, I don't know that I want that to be my retirement.
Pete: No, honey, we're going to clean the baseboards today. Yes, it's funny about that. But you know there's conflicting information out there, right? So in one side, you see headlines where BP is laying off what is it 10,000 employees or something like that.
And then you have others that you have InstaCart that's adding 300,000 employees. So you're seeing some, I mean, you see headlines on both sides of it.
Nat: Yes, I kind of feel like it's a mind-bender. Because I guess it's that creative disruption that a black swan event creates, where ultimately I think we're going to see, plenty of independent mom and pop retail go out of business. Which would be like restaurants and things like that.
I mean, I can't even imagine all the overhead, and they have and everything, and then being at zero percent revenue, and now they're open a little bit. So a lot of things are going to go out of business. But then, on the other hand, you see, like Amazon and like you said InstaCart, all these guys are just hiring like gangbusters they can't even keep up. I did a quick search; let's see Amazon's looking to hire 170,500,000 workers. McDonald's is hiring almost 300,000 people.
I actually have friends that own McDonald's and Culver's, and they're saying that their stores are 90% revenue or even better, and that's with not having the dining room open. So you can imagine like we're just kind of flattening out and becoming more of a delivery and service economy again.
Pete: Yes. And as you take a look at it, so the confliction is that you're losing executive positions, higher-paying jobs, but you're adding a lot more jobs in the service sector.
Nat: Yes.
Pete: Fair to say?
Nat: Yes, 100 percent.
Pete: Yes. So I think one of the things that I talked to my candidates about is that as we go into these times where we know that there's going to be more executive layoffs, is how do you protect your career? Or, more importantly, protect your income, right? What do you do? And you got many different options.
Like you could take your experience and do a consulting, start your own consulting business. You can go buy an existing business, and you and I work with executives to help them explore franchise ownership, to really put themselves in a position where they're an entrepreneur where nobody can walk in and offer them a package.
Nat: Yes. I was fortunate enough to buy a senior care franchise back in 2001. Having a senior care service-based franchise has really saved my bacon all through COVID and all that because it's an essential business.
I think that researching and exploring options is good. Also, I think it's a great time to research franchises, just because then you can see what was considered essential and what survived and what thrived and all that. And also understand the kind of support that the franchisees were able to offer throughout this stuff.
Pete: Well, and as we come out of this, bottom line is there's lots of opportunities or reasons why you should do it. I mean, for example, there's a lot of capital out there available. I mean, there's SBA loans out there, so there's money available. There's now more labor available, right? Before it was a tight labor market, well now you've got more availability of people from the standpoint.
And then, not to mention real estate, you take a look at real estate, commercial real estate it's going to loosen up. And that means that maybe you get a little better TI money, get some better rent abatement, and stuff like that.
Nat: Yes. I think there's always opportunity for guys that are kind of willing to face their fear and put together a game plan and take action, right? I think the worst thing is sitting around just watching the news 24/7.
Pete: I'm laughing because I just had a call with my mom, and she was crying. I'm like, mom, what are you doing? And she goes well; I'm watching the news and all this stuff; I said, mom, you got to turn the news off, right?
To your point, you just got to kind of figure out where you want to go and what you want to do, and go forward. Because if you get caught up into all the headlines and stuff like that, you'll get stuck, and fear is a big problem for people.
Nat: Exactly. I think that's a great opportunity for people to do more with less too. You and I have been talking over the years a lot about when people are thinking about starting a business, to cut back on some expenses, right? So are you able to? Maybe you don't need that huge lease payment on the BMW.
Maybe you don't need that second home; there are all these different ways to kind of do more with less, right? And I feel like even for my family, we're doing that. There's a lot of things that we cut out or downsized over the last few months. And also just kind of been a huge blessing to be able to spend more time with the family and then just realize what's really.
Pete: Are you saying they think that, or you think that?
Nat: I think it's mutual.
Pete: All right, fair enough. Because if you ask my wife, I don't know, she would say I don't know; I've been stuck with him for around for 90 days, I'm kind of getting sick of him. But I do think it is a blessing, and we're kind of reprioritizing, right?
Nat: 100 percent.
Pete: And I just read an article, and one of the advantages is COVID-19 is we're reconnecting as families, reconnecting with friends as we hadn't done before. Because we can't go necessarily on vacation, but we can go visit a friend's lake home or things like that.
Nat: Yes, that's true. I find myself either even like calling my brothers and sisters and different people and just being like, hey, how's it going? Checking in with them just because there is more time or more space in my life right now, so I'm embracing it.
Pete: Well, and as you take a look at kind of resetting your life from a personal standpoint, it's also a good time to put yourself in a position from a professional side, right? So there's going to be more vulnerability, is if you're a senior-level executive, you want to be in control. You don't want anybody to be able to come and take your income away.
And that's why go find out a strategy where you can create a supplemental income or bridge to where you are the business owner, where nobody can mess with you. Because if you're the business owner, you're the last person standing, right?
Nat: Exactly, yes. I think a good approach to take with that, and I know that you know that one thing about me is like when I'm learning something new, I typically will time black like one hour each morning and learn about something, that topic.
Whether it's for a few weeks or a few months even, like for corporate executives thinking about reinventing themselves. Maybe taking one hour each day and just investigating franchises; I think you can learn a whole bunch and see what options are out there too.
Pete: Yes, that's an amazing discipline you have of investing an hour into your development each day. I mean, I learned that from Darren Hardy, and I know you've been to some of the stuff insane productivity. But that idea of focusing and taking advantage of this time now to put yourself in a better position, I think it's great thought.
Nat: So Pete, tell me a success story or two, I guess, about some of the guys; I know you talked to a lot of them, they're starting the process. But what about some guys maybe in the last 30 days or so kind of made that decision and took that leap of faith and bought a franchise.
Pete: Yes. So, for example just worked with a finance executive, the VP of finance, and got thrown into current transition. No-fault of his own, they were eliminating positions. And he came to me, he said Peter, I have to do something, I want to be back in control of my life, my income. And I want to get going. I don't want to sit around for four months and look for a job. I want to go do something.
So he ultimately invested in the service-based business. And the advantage of a service-based business is they held up a little bit better during the last or the last 90 days, right? This black swan event.
But you also can get started. So he can be in training in August and opening up his business in September, and that allows him to start building and growing a business. And so I'm very excited, he and his wife are doing it together and very cool.
Nat: Yes. Actually, that reminded me, I've been working with a guy; I started working with this family about two years ago, a little bit younger. They live downtown Chicago, actually have young kids. Actually, they just had their second child, and then they have a three-year-old.
And when we started talking a couple of years ago, they kind of had this like a 10-year plan in their head that they were going to eventually sell their house in Chicago and move to the lake in Michigan, right?
And so we were kind of exploring franchises and all that, and then we decided last I would say I think it was thanksgiving or so to kind of just table everything, right? So I get a call in March, and he's like I got downsized, my wife now realizes she can do her job remote, a house came up for sale at the lake that we were looking at, and so they actually bought the house on the lake.
And basically, they accelerated their 10-year plan, and so it was pretty cool. And again, they're looking at the service-based franchise. That's what made me think about it, where they can move to Michigan on the house on the lake, have a nice territory and be up and running, just in a matter of months. Not having to wait to do a lot of construction and get the store open or what have you.
Pete: Yes, that's a great story, right? And she can continue to do her role and have that income while he's starting the business; that's pretty awesome.
Nat: Exactly. Yes, it's a new world out there, right.
Pete: And so I think as we wrap up today, I mean the deal is that there is a lot of news out there, corporate layoffs, and we know that those are real. And we know that also a lot of these service companies are hiring. But from our standpoint, as we work with senior-level executives, you're exposed.
And if you're in your 50s and you're a senior-level executive, start working on what plan B is. And I think your point of invest an hour a day, figuring out what your next step is, and maybe you accelerate your plan to take control of your life and live life on your terms.
Nat: Yes. Make that someday plan today [Inaudible 00:15:52.13]
Pete: No, absolutely, right? I mean, this has been a tough time, but it's also been a good time, as we just discussed earlier.
Nat: Awesome. All right, Pete, well, thanks for sharing about that.
Pete: Awesome, all right, have a great day.
