Chemical Engineering November 2016 - 74

You and Your Job
Re-Establishing Course
Changing employment situations can leave affected employees trying to redefine
their career paths. The positive experiences shared by these authors can provide
some options and strategies
Carl Rentschler
Consultant
Goutam Shahani
Shure-Line Construction
T
he corporate world can be
challenging because business
fluctuates with time,
and employment
reductions
must sometimes be made
to get the business back on track.
This leaves the affected employees
in a difficult spot as they try to reestablish
themselves and maintain
a desired career path. This situation
is doubly troubling for mature
professionals (>30 years of experience)
who face the added stigma
of being viewed as past prime. During
such challenging times, it is difficult
to remember that bad things
sometimes happen to good people,
and " lemons can be turned into
lemonade. " The mature authors of
this paper simultaneously faced the
lost-job situation, but the outcomes
were substantially different and both
were positive. This article describes
their experiences, which can serve
as options for mature workers facing
this traumatic situation and reestablishing
course.
DOWNSIZING
The oil-and-gas sector in the chemical
process industries (CPI) has made
headlines in the economic pages of
the news lately. The prices of crude
oil and natural gas are widely publicized
since they affect almost every
aspect of human activity. Crude oil
and natural gas are essential raw
materials for the production of transportation
fuels, fertilizers and a wide
range of petrochemicals and polymers.
These products are eventually
converted into everyday products
including plastics, packaging materials,
textiles, fibers, paints, solvents
and a host of specialty products.
66
150
100
50
Dollars per barrel
Source: U.S. Energy Information Administration (Oct. 2016)
1986
1988 1990 1992 1994
1996 1998
2000 2002 2004
2006 2008 2010
Weekly cushing, OK WTI spot price FOB
FIGURE 1. The price of crude oil, shown here with the Cushing Oklahoma WTI (West Texas Intermediate)
price, has fluctuated greatly in recent years
Since the early 2000s, supply and
demand of crude oil have fluctuated
widely, resulting in a high degree of
price volatility (Figure 1).
By contrast, the 1990s was a period
of relative price stability. This allowed
large corporations to develop
projects and marshal the necessary
human resources to achieve desired
results. However, in the current environment
when the price of crude oil
has declined by a factor of four -
from a high of $142 per barrel (bbl)
in July 2008 to the current price of
about $30-50/bbl - it is very difficult
for corporations to remain profitable
and provide steady employment. It
must be remembered that in a capitalistic
society, the first responsibility
of a private corporation is to make
money for the owners of the company.
Unfortunately, sometimes this
means having to reduce headcount
as a way to lower overhead costs.
Corporate reaction
Most corporations try to resist downsizing,
since it is disruptive to the organization
as well as the individual
employees. Furthermore, downsizing
can have a negative impact on
morale for even those employees
who are not directly impacted. It is
also difficult to recruit, train and motivate
employees when the economy
improves. Hence, most corporations
reduce headcount only as a
last resort. When this happens, the
corporation tries to be humane and
respectful to the affected employees
by providing advance notice and a
severance package to ease the transition.
In the U.S., health coverage is
continued under the Consolidated
Omnibus Budget Reconciliation
Act (COBRA), and unemployment
compensation may be available for
an extended period through the relevant
state governments.
Transition
Very often both younger employees
(<10 years work experience)
and older employees (>30 years of
experience) are impacted. Younger
employees are usually more mobile
and marketable. They usually find
jobs faster than more senior, experienced
employees who tend to be
more specialized, less mobile and
higher paid. This article focuses on
the choices available to the more experienced
employees.
OPTIONS
As experienced individuals explore
options for the next phase of their
careers, it is important to honor several
important commitments. This
includes abiding by the spirit and
the letter of the contract with the
previous employer. Non-compete
agreements and non-disclosure
agreements must be carefully and
scrupulously honored. Also, under
no circumstances should confidential
and proprietary information and
trade secrets, both of a business
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