[Photo: Mr Zainudin, who once earned $3,500 a month as a hotel director, remains positive after taking up a position as a library assistant for $1,300 a month. He is now focused on upgrading himself by studying for a diploma in marketing.]

By Melissa Sim

THE recession has hit, retrenchment is common and some job seekers have had to settle for lower-paying positions - but this is not always a bad thing.

Career consultants and placement agencies say those who are over-qualified for their new jobs and have to take a pay cut often do well in their new careers and are promoted more quickly.

The centre manager for employment and training services at the South East Community Development Council (CDC), Mr Vengadesh Naidu, said their experience from other jobs could have helped them 'value-add and contribute meaningfully in their new jobs'.

He added that soft skills such as effective communication and supervisory skills could also be positive contributing factors in career progression.

Mr Dhirendra Shantilal, the senior vice-president for the Asia-Pacific at recruitment agency Kelly Services, said PMETs (professionals, managers, executives and technicians) usually fare well because they are able to apply their existing skills to their new jobs. But they must 'maintain an open and positive mindset'.

Mr Vengadesh highlighted a case of a job seeker who had been an administrative officer for more than 15 years. He had to undergo training before he could take up a new job as a security officer. He also had to get used to shift work, which he had not done before.

But his hard work paid off. Within nine months, he was promoted to general manager of the company.

Another job seeker who hopes to follow a similar path is Mr Mohd Zainudin, 57, who has held many posts in various industries - finance, hotels and security.

As a hotel director, he used to earn about $3,500 a month, but he was made redundant after a change in management and became unemployed in December 2007.

Last February, he approached the South West CDC for help and, in August, he was offered a post as a library assistant at Juying Primary School.

Proud of his achievements, he showed The Straits Times the neatly arranged rows of books in the school's library.

'Before I came, all the books were in a mess,' he said.

The A-level holder had been hoping for a job that would pay him about $1,800 a month, but he still accepted the post, which pays $1,300 a month.

Mr Zainudin recalled that while he was jobless, he would fret each day that he was 'getting a day older and moving another step away from getting a good job'. He added that he remains on the lookout for better work opportunities.

Last year, a total of 16,880 workers lost their jobs, double the figure for 2007.

The Ministry of Manpower said seven in 10 of those retrenched last year had found new jobs by December, despite the economic downturn.

Nevertheless, most of the CDCs and placement companies that spoke to The Straits Times said job seekers are still quite hesitant to take up jobs they feel they are over-qualified for.

Career consultants said some have pre-existing financial commitments that prevent them from making a career switch or accepting a lower salary. Others are newly retrenched and might have received cash payouts that will allow them to hold out for a while.

A spokesman for the South West CDC said there are ways to help the unemployed change their mindsets, for example, by getting them to realise the difference between needs and wants, and also by making them recognise their responsibilities to their families.

Noted Mr Philippe Capsie, the country manager for human resource consultancy Manpower Staffing Services (Singapore): 'If the period of unemployment is too long, it could leave a negative impression on the person reading the resume, especially if the reason given is pay-related.

'In addition, these candidates stand to lose out to those who took up low-paying jobs and have the advantage of relevant experience.'

Kelly Services said that of those it had placed in new jobs, the number accepting lower pay had gone up by 25 to 30 per cent, compared with three months ago.

The agency's Mr Dhirendra said job seekers had originally hoped for a quick recovery in the economy, but have since grown more pragmatic.

On the issue of lower salaries, MP Halimah Yacob noted that a well-qualified job seeker who accepts a lower-paying job might not be able to fully utilise his training and capabilities. However, she added that 'underemployment is better than no employment, though not permanently, as that would demoralise people'.

'I think what we need to see also is the swift rolling out of more train-and-place type of programmes for PMETs and higher-skilled workers,' she said.

Upgrading is something that Mr Mohd Zainudin has already decided to pursue. Even with a full-time job as a librarian, he has started studying for a diploma in marketing.

He said positively: 'With a diploma, I'll be able to go for any job.'

This article was first published in The Straits Times.