If you have ever read anything that I have written, or even had a mildly interesting chat with me, you know that I am a huge fan of metaphors. Anything that transforms difficult concepts into ideas that are more readily consumed is an A+ feature in my book. I just feel like it makes for better communication and the democratization of complex ideas.

So it should be no surprise that I am deeply attracted to the idea of Occupational Collateral discussed in Cal Newport’s book, So Good They Can’t Ignore You.

Common Concepts

The idea of collateral is one that almost anyone can readily understand. If you want something that your do not have the reserves to obtain you must borrow the difference. The lender accepts your “collateral” as a form of security. This process is common whether you are hoping to purchase a home or some other large-scale good. But Newport’s book shows us that the idea has greater application.

The idea translates into a career context when we replace the idea of a “home” with the concept of a new job or role. It might seem like stretch until you accept that it is simply the exchange of one noun for another. If you wanted a new house you might state square footage, location, or school districts as desirable features. Whereas a new position might carry greater responsibility or salary as features.

Career Collateral

While purchasing a house may require a sizable down payment of currency, getting a new job also has its requirements. Instead of money the currency of careers exists an experience, successful projects, and reputation. And just like purchasing a home with a down payment, one must have the correct amount of career collateral in order to obtain a greater position.

Essentially it works like this: You have your eye on a new job, but you don’t have the proven background to prove you can fulfill the job’s requirements. This is because you are aiming to move vertically along the career ladder, not horizontally. In order to fill the gap between your experience and the requirements you must ask for a “loan” in the faith and support of the hiring manager. And just like you would present your financial collateral at the bank, you present your career collateral to the manager. “Look, I have never done this job, but you can see that I have done very well in my previous jobs. Now I am ready to cash in that track record for more responsibility.”

In this context, the notion of experience and performance as collateral is a very easy one to accept. And, just as with money, it takes time to build collateral before it can be cashed in.

Career Curation

Maybe you are a responsible steward of your finances, watching your bank accounts and credit score. It is readily obvious that people who behave in this manner enjoy greater financial success. So, why is the idea of career collateral so obscure to most people? And yet, the exchange of career collateral happens hundreds of thousands of times a day in offices all over the world.

The question raised by the concept of career collateral should be “How will I build my career collateral?” What are you doing, daily, to build your experience and track record? How are you working to improve your skill set? What is the state of your professional reputation? All of these are aspects of your career collateral just as timely payments and credit history are aspects for your financial well-being.

So, before you aim to elevate your career, examine your career collateral. Determine if you have stocked enough collateral to be able exchange for the opportunity to prove yourself in a new role. If you feel you do have the collateral, go for it! But, if you reflect on the matter and find that you do not, then it is time to focus and build your career collateral. Once you start to pay attention to the idea, you’ll soon see that those people who behave in this manner enjoy greater financial success.

Or, I suppose you could go through life with collateral damage …