Facing a career setback? Here's how to overcome it

For many of us, career setbacks are an inevitable part of working life. Whether it’s retrenchment, missing out on a job you wanted, or receiving negative feedback, almost everyone faces setbacks at some point in their career.

But that doesn’t make them any easier to deal with if you’re faced with one yourself.

While any change or disappointment can be a shock to the system, there are ways to work through these setbacks and get back on track.

What is a career setback and why are they so challenging?

A career setback is any significant disruption to your career journey, says Justine Alter, organisational psychologist and Managing Director of Transitioning Well, an organisation that specialises in supporting workers during times of transition. “These derailers are often unanticipated and unwanted events like job loss, missed promotions, redundancies or role changes during restructuring, or personal crises that impact your work life.”

Because work is such a huge part of who we are and how we spend our time, it’s unsurprising that career setbacks can feel so disruptive. Alter says people in situations like job loss or redundancy often feel caught between two worlds – no longer able to maintain their old professional identity but not yet sure of what their new one will be.

“This period of uncertainty, while uncomfortable, is actually a normal part of career transitions,” she says. “It's the space between letting go of what was and discovering what comes next.”

According to Alter, career setbacks can prompt us to reassess our professional direction and priorities. One of the biggest hurdles is emotionally processing the setback, which can feel similar to the classic stages of loss, such as shock, denial, anger and self doubt.

There can also be practical challenges beyond the emotional ones. “Financial stability often becomes a concern, especially if the setback involves job loss,” says Alter. “People might need to quickly adjust their lifestyle, manage reduced income or dip into savings. There’s also the challenge of explaining the situation to family, friends and future employers.”

It’s important to remember these challenges as normal parts of the experience of a career setback, which can help you approach them more constructively and seek appropriate support when needed.

Five tips to help you bounce back

So, what helps after you experience a setback? Bouncing back requires rebuilding your foundations step by step, Alter says. “Think of it like creating a strong platform for your next career move.”

Here’s what she suggests:

Look after your health. This means getting regular exercise, maintaining consistent sleep patterns, and taking care of your basic wellbeing. When our physical health suffers, everything else becomes harder to manage.

Stay connected with others. Research shows that staying connected with others is one of the most powerful ways to protect our mental health during career transitions. Reach out to friends, family, and professional contacts. Sometimes just having coffee with someone who understands your situation can make a huge difference.

Break down your next steps into small, achievable tasks. Instead of focusing on the big task of finding a new job, turn it into manageable goals like updating your SEEK profile or contacting three people in your network this week. This approach helps maintain momentum without feeling overwhelmed.

Join industry groups, connect with former colleagues, or attend relevant events. These connections often lead to opportunities and provide valuable support during your transition.

Seek support. It’s particularly important during these times to seek support – whether through financial counselling, career guidance, or mental health services – to help manage both the practical and emotional aspects of career setbacks. Your employer may have an Employee Assistance Program (EAP) that offers counselling, outplacement or other resources.

Feeling prepared for future setbacks

While challenging at the time, a setback can often help you develop greater resilience, stronger leadership skills, and better emotional intelligence. “With the right support and strategies, you can navigate these challenges and often emerge stronger than before,” Alter says.

How can you prepare for possible future setbacks? Alter says it’s a good idea to consistently prioritise your physical and mental health, develop strong support networks, and keep up regular self-care practices so your cup is full with reserves for when a challenge arises.

Remember, a career setback is just one chapter in your career story. These transitions, while challenging, are part of so many peoples’ journeys and can become an opportunity for your own future growth and development.