Question
In another column about how to change careers, your advice seems to be valid for someone who is single, but not for someone who has a family to support. What about the salary? One cannot simply go from, say, a hedge fund manager to being a tour guide in a museum. The career switch has to compensate in the similar salary range, otherwise one would have to give up what they own and lose self-respect.
Nick’s Reply
I think career change has become more common, if not necessary, than it’s ever been. Look around: our economy is still in upheaval. But one thing that hasn’t changed is that moving from one career field to another usually exacts a cost in salary, at least for a while.
Change careers and lose salary?
If you can change careers without a loss in salary, I compliment you. But the reality is, the job hunter must be able to demonstrate that level of value to an employer. When hiring a career changer, an employer takes a significant risk.
My advice is to focus on how you will address the employer’s needs in order to justify and maintain your salary. Many career changers expect employers to compensate them at their old level simply because ‘that’s what I was paid before.” I can’t think of an employer that accepts that rationale. I think it’s crucial for a job changer to understand that value is relative to the job and the employer, and deal with it. That’s where my advice in that old column comes from — and my advice has not changed.
Why are you worth the same salary level?
The reality is, high-paying jobs (like hedge fund manager), require highly specific skills. Shifting from one high-paying job to another (I don’t think museum tour guide is going to do it!) requires a shift from one highly-specialized skill set to another. If a job hunter can accomplish that from the start, the new employer may pay for it. But I don’t think an employer is going to match a salary unless the candidate can demonstrate that they are worth it from day #1.
It almost doesn’t matter what you have done before. If you’re making a real career change, your experience and credentials may not matter enough to warrant the same salary level. (They stopped working for you, remember? That’s why you’re making the change.)
What matters is the work that needs to be done next. Few people have any idea, because they don’t look. They’re too busy reflecting on themselves and their skills — and on changing careers without a cost. They let their old, job-specific skills limit their new choices and their future.
To change careers, map your skills to the new work
Here’s my suggestion, which may draw some heat from “the experts.” Forget about your skills and the history on your resume. (That’s the wall you’ve slammed into, right?) When we think about our skills, we tend to think about the specific constellation of skills we have recently used. Now be honest: Do you expect the new employer to figure out how to apply your old skills to the new career? I can almost assure you, they won’t.
A new career will require a totally reorganized version of our skills and abilities. And you won’t know what that new constellation needs to look like until you know what work needs to be done.
As you decide what your next career should be, dig deeply into industries, businesses, products, and companies that excite you. Home in. What kinds of work does each business entail? How could you contribute? What tools would you need? What further study, education or training are required? Whom do you need to talk with? (What companies are worth such an investment?)
You may need to resign yourself to treating career change as an investment that requires an up-front “salary cost.” Of course, you must map out the long-term ROI. If you want to come anywhere near to the same salary you enjoyed in your last career, you can’t wait for (or expect!) a new employer to figure out how to map your old skills to the new job. You must figure that out and explain it to them.
More resources to change careers
For more on how to do this, please see How to launch a seemingly impossible career change and listen to this brief audio advice.
And here’s stellar insight for career switchers (more audio!) from my good friend Dr. Dawn Graham, former Director of Career Management for the MBA program for executives at The Wharton School. This may be some of the very best advice about career change you ever hear.
Have you tried changing careers? Did you pull it off or did you fail? What would you say are the parameters of successful career change? What are some of the common causes of failure? How can someone change careers and maintain their salary level?
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Some times the career change comes with an increased salary. My salary went up about 30% changing from physics professor to engineer (of course the lack of professorships drove that). In the suggested case, I suspect the entry level jobs at the hedge fund pay more than tour guide.
yep. Rings a bell. I worked in the IT sector. Software QA Mostly, but other Engineering support. I managed a team of tech writers. Our facility was near 3 major colleges. We hired several professors as tech writers. They were not in the sciences but liberal arts. And simply were personally computer literate.
they got a nice bump from academic pay. And more than one then transferred into engineering as they again changed careers. From the inside. Gain hard-won respect from the engineering crowd who usually didn’t credit mere mortals with a technical brain.
In the late ’90s, I moved from selling cars to Webmaster. More than doubled my compensation. And I was at the bottom-end of the pay scale.
My point being career change absolutely can result in parallel/increased compensation.
The “but”…
Timing. Location. The market. Current job. All of those factors will impact the ease and compensation in a career change. The whole “what the market will bear” thing.
I doubt there are many roles that offer similar compensation to Hedge Fund Manager. But I suspect a Bank Branch Manager could make a parallel move.
As always good advice, but it comes down to just the same old question. What will you produce in additional profit?
I sense a lot going on in this question, and I’m going to interpret it as: I want to change to a more meaningful/less stressful career direction, but my family expects me to keep them in the lifestyle to which they’ve become accustomed.
Unless you’re a terrible or unlucky hedge fund manager, a museum docent salary isn’t going to compare. But non-profit fundraising professionals for example, can be quite highly paid, because their salary is a function of the income they bring in. So the key is to find a role that addresses the change you want to make, balanced against the kind of life you want. Could it still mean a pay cut? Sure. Is it worth it? You have to decide.
I’ll also add that it’s not now or never, black or white, and sometimes the answer is to keep the high flying job while you can, and volunteer or take on a hobby to do the thing that makes the world a better place. Some employers will allow you leeway to serve on a non-profit board, especially if it helps the organization’s visibility.
Lastly, I’m a big fan of staying out of debt, living within one’s means, and saving aggressively. What you give up in conspicuous consumption, you gain (and then some) in life choices. Hopefully you and your family can agree on a vision.
You guys nailed me! I was too focused on what the OP seemed to be talking about – people that want a new, more exciting career making at least the same money without having to fully qualify for it. E.g., Pay me what I make now to keep me whole and it “should” pay off for the employer at some point… I should never have to make less!
I suppose I’ve seen this conceit too many times and have had to deliver my speech about how you must sometimes take a temporary cut as an investment in a better career long-term.
But, clearly, as Dale and Gregory point out, changing careers can result in nice bumps in salary!
Decades ago I changed careers from law enforcement to income property finance, successfully. I interviewed professionals over lunch to be clear on their responsibilities in the finance world, initially. Then I ignored those who think it can’t be done. Well, maybe they can’t do it but some of us can. Good luck!
@Marilyn: Talking with insiders to learn about their work is the PERFECT approach!