Since I wasn't around during the dot-com crash, could some of the veterans on HN give more practical advice on how to position yourself to ride out a crash?
Right now, my theory is to try to get yourself a job at a stabler tech company with proven profitability (ex. Google). Does that make sense?
When the 2001 dot-com crash hit, I voluntarily left my job as a *nix systems administrator at AOL before the walls fell in. I went back to school to finish my Bachelor's and joined college Army ROTC. I joined ROTC for several reasons: it was a new career for me, one that would develop my leadership and prepare me for bigger things. Being in ROTC also gave me the structure that I needed to succeed in school and finish my degree quickly. It also gave me a small stipend that helped me buy food. After graduation, the tech industry improved and I wanted to get back into it. I served in the Army Reserve (and still do!) on the weekends while I worked as an engineering manager during the week. The Army had been key to maturing as an employee and as a leader and I found it easy to join the ranks of middle management post-college.
I rode out the second "crash", the recession of 2008, at Rackspace. A managed hosting/technology company like RAX is a great place to be when times get tough. When big businesses need to cut back, they trim IT staff and outsource their infrastructure to a place like Rackspace. We stayed very busy and profitable during the recession. When things improved six years later, I bailed and went to work for a Rackspace customer and that's where I've been ever since.
How about just a stable company, then make yourself valuable there? Sure if you like tech, you can try for google, but there's so many companies which are dying for competent IT folks (even if their hiring practices seem to fight it) that you can provide a load of value to people in almost any situation. The question then comes up about are they positioned to pay you for that value - is it valuable enough to them? Gotta spend a bit more time finding those, but... they're definitely out there.
Basic advice - have a lot of savings, and if your main income stops, be extra frugal (and... hey, even be frugal now if you can). "Cash is king", and having buffer of months or years in the bank can give you time to be more selective and avoid making panic-decisions (which generally aren't when you're in the best frame of mind to make decisions).
1. They seem much more likely to undergo major layoffs than Google et al.. If you're not growing, layoffs seem to be a constant.
2. During layoffs, the first people to go are cost centers. IT is a cost center unless your industry is technology.
3. The difference in pay is astronomical. Like, easily 2-3x from the times I've tried interviewing. Even small startups pay developers better (in cash) than most non-tech companies seem to.
I'm not too worried about the savings thing. I think I'm covered for a decade if necessary.
Really? Not doubting you, but that would mean a whole fairly big pile of money already.
I didn't say 'large' companies at all, did I? It's a balance finding smaller/medium companies, but there's definitely loads where you can make an impact and negotiate to be rewarded appropriately.
If you have 10 years of savings, why are you worried about layoffs?
It would entail moving to a lower cost locale (ie. not SF/NYC), but certainly doable. It would also mean tapping everything besides my IRA.
I'm not really worried about layoffs. It's more that I would like to be prepared. Also, even if I can survive financially, I'd rather avoid going without an income for any extended period.
In terms of small/medium companies, it really seems like most of them outside tech don't value IT at all. If they even have developers, they seem to underpay them.
This might just be my bias though. I appreciate the advice and will be sure to include a few smaller non-tech companies in my next job search.
good luck to you whatever happens!
Absolutely agree!