DealBook: BATS and Direct Edge to Merge, Taking On Older Rivals

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Preoccupations: Older, Unemployed, and Landing the Job

In 2011, I was an account executive with Scor Global Life Americas Reinsurance Company, in Plano, Tex., near where I live. When Scor acquired Transamerica Reinsurance, I was laid off along with several other people that October.

At that point I called Mike Pado, a former colleague at Scor who had left the company several months earlier for a job as president and C.E.O. of Aurigen USA Holdings. Aurigen is based in Bermuda, and Mike had been hired to look at starting a life reinsurance company in the United States.

Mike, who works out of Red Bank, N.J., was still in the planning stages for the new venture when I spoke to him. He said that at some point he’d need a person who knew the reinsurance industry and its top executives and could contact them for a snapshot of the United States market. He knew I fit that bill. But he was hoping that the person he hired would also be an actuary. I’m familiar with risk assessment and risk management in that field, but I’m not an actuary. So besides my age, I was worried about that.

I had done a good job at Scor for 12 years, and I was disappointed that I had been laid off. My level of anxiety was fairly high. The Aurigen venture sounded like a great opportunity if it worked out. But the business world often has certain misperceptions about workers 55 and older. Some people think we’re set in our ways, we don’t have the energy we used to have, or that we’ve lost our drive. They may worry about offering us a lower salary than we earned previously. I knew I’d have to address these concerns when job-hunting.

I told Mike I was interested in working for him, and we left it that we’d stay in touch while he continued to develop a business plan and consider a staff for the United States company. In the meantime, I sent out 300 résumés. I heard back from about a third of the companies and had about 12 or 15 interviews, but no luck.

By June 2012, eight months after Mike and I first talked, I still hadn’t found a job. Then Mike called and said he could offer me a three-month position as a marketing consultant, and that we’d see what happened after that. I was excited, but a consulting job was not ideal for me. I told him I would do the best job I could for him but would continue looking for a staff job with benefits, and he understood.

Consulting works well for people who like short-term projects and freedom, but I’ve always liked having a staff job. I like the feeling of belonging, and benefits are important.

I started talking to executives right away to gather the information Mike wanted and help him determine whether there was room for another entrant in the United States life reinsurance industry. I spoke to a vice chairman, 11 company presidents, 25 chief actuaries and 30 life underwriters and sent Aurigen’s annual report to customers and others, sometimes with a handwritten note.

My work helped Mike make a case to his board that another United States life reinsurance company could do well. In October I got the news that Mike’s proposal had been accepted. He was finally able to hire me as an account executive on staff for his new-business development team. I was able to stay in Texas for my new job at Aurigen.

Right after hiring me, Mike had me join him and the Aurigen pricing team at the October 2012 conference of the Society of Actuaries in Washington. Many industry executives attend, and I’d help sell prospective clients on the benefits of working with the new venture.

When word got out that I’d been hired, my former colleagues gave me a warm reception, which was nice. Several welcomed me back to the industry, and one asked about my sales territories. It felt great to know that I hadn’t been forgotten.

Rather than start a new company from scratch, Mike began looking at United States insurance companies to buy, choosing one that Aurigen closed on and renamed this past spring.

Some people might have no problem retiring after being laid off at 59. Maybe they tell themselves it’s not what they would have wanted, but they make the best of it. Or maybe they are ready to retire, so it turned out to be perfect timing. I’ll be 61 in September, but I want to keep working, so getting a chance at this job worked out well for me.

It’s easy to get depressed about being an older job seeker. You have to keep your eyes open, stay focused, and be open to possibilities. You never know when and how an opportunity may come along.

Shortcuts: Unemployed and Older, and Facing a Jobless Future

She wonders how to support him in his continued quest to find a job in his field of marketing and financial services while at the same time encouraging him to think about what his life would be like if he never worked in that field or had a full-time job again.

“I wanted to move to what I thought was a healthier place. I wanted to turn the page,” said my friend, who asked to be identified by her middle name, Shelley, since she didn’t want to publicize her family’s situation. “He saw it as vote of no confidence.”

For those over 50 and unemployed, the statistics are grim. While unemployment rates for Americans nearing retirement are lower than for young people who are recently out of school, once out of a job, older workers have a much harder time finding work. Over the last year, according to the Department of Labor, the average duration of unemployment for older people was 53 weeks, compared with 19 weeks for teenagers.

There are numerous reasons — older workers have been hit both by the recession and globalization. They’re more likely to have been laid off from industries that are downsizing, and since their salaries tend to be higher than those of younger workers, they’re attractive targets if layoffs are needed.

Even as they do all the things they’re told to do — network, improve those computer skills, find a new passion and turn it into a job — many struggle with the question of whether their working life as they once knew it is essentially over.

This is something professionals who work with and research the older unemployed say needs to be addressed better than it is now. Helping people figure out how to cope with a future that may not include work, while at the same time encouraging them in their job searches, is a difficult balance, said Nadya Fouad, a professor of educational psychology at the University of Wisconsin-Milwaukee.

Psychologists and others who counsel this cohort need to help them face the grief of losing a job, and also to understand that jobs and job-hunting are far different now from how they used to be.

“The contract used to be, ‘I am a loyal employee and you are a loyal employer. I promise to work for you my entire career and you train, promote, give benefits and a pension when I retire.’ Now you can’t count on any of that,” she said. “The onus is all on the employee to have a portfolio of skills that can be transferable.”

People in their 20s and 30s know that they need to market themselves and always be on the lookout for better opportunities, she said, something that may seem foreign to those in their 50s and 60s.

If a counselor or psychologist “doesn’t understand how the world of work has changed, they’re not helping at all,” she said. “You can’t just talk about how it feels.”

In response to this concern, Professor Fouad and her colleagues have drawn up guidelines for the American Psychological Association to help psychotherapists better assist their clients with workplace issues and unemployment. It is wending its way through the association’s committees.

Of course, not everyone who is unemployed and over 50 is equal. For some, the reality is that they need to find another job – any job – to survive. Others have resources that can allow them to spend more time looking for a job that might have the salary or status of their former position.

In the first case, Professor Fouad said, “You need to decide what is the minimum amount of money you can make and how to go about finding it.” In the second case, she said, it’s necessary to examine what work means to you and how that may have to change.

Is it the high social status? The identity? The relationship with co-workers?

It is important to examine these areas, perhaps with the help of a professional counselor, Professor Fouad said, to discover how to find such meaning or relationships in other areas of life.

Sometimes simply changing the way you look at your situation can help.