downshifting

Gen Mgt

the concept of giving up all or part of your work commitment and income in exchange for improved quality of life. The term was coined by Charles Handy. Downshifting has increased in popularity because of rising stress in the workplace caused partly by the downsizing trend of the late 20th century, and may be contrasted with the concept of the organization man. Downshifting is integral to the idea of portfolio working, in which individuals opt out of a formal employee relationship to sell their services at a pace and at a price to suit themselves.

     Most people consider downshifting because of family demands, or because they have been asked to do something by their organization that goes strongly against their values, pushing them to question why they are working so hard for that organization. Others downshift as they approach retirement, in order to smooth the transition. People who downshift need to be very sure that that is what they really want and know why they want it, as it can be hard to reverse the decision.

     Someone wanting to take the risk of downshifting should make a thorough assessment of his or her short-term and long-term financial situation by way of preparation. They will need to have a good bed of savings to rely on in the first year. It may be necessary to consider moving to a smaller, cheaper place. Deciding what to keep of the old life and what to let go is another important part of the preparation. Some downshifters will want to completely leave their old work life behind them, starting a new job in a slower-paced organization, or setting up on their own. Others will want to stay with their organization but perhaps move to a less demanding job. Once these things have been considered and decided upon, it is time for the downshifter to make an action plan with a schedule which includes regular reassessment periods.