In the latest installment of her regular series, “From the Frontline”, our new columnist discusses how candidate fear of being shut out of banking forever is becoming a key driver in today’s employment market.

A former banker, who now works as a headhunter, the author has more than 10 years’ experience at leading firms in Asia.

Nobody, not even prospective employers, can tell you when you will cross the line of “unemployability”. Is being out of work for three months easily accepted? When you reach six months of post-redundancy unemployment, does it become impossible to justify?

There is a growing self-perceived fear among retrenched candidates of being permanently shut out of financial employment, of never being able to get back into banking.

Being too flexible…

This fear is having a direct effect on recruitment. Candidates are increasingly willing to look at roles which might actually be a step-down from their pervious one. Team leaders are willing to be team members and even take marginal pay cuts.

I have met a few private banking department heads who are willing to take up relationship manager roles. Younger private bankers tell me they could potentially be interested in priority banking roles.

And it’s not only happening in private banking – this is a growing trend across various sectors, even in support functions like finance, accounting and product development.

…isn’t always a good idea

But how do banks view this sudden flexibility in their candidates? At best, with suspicion. If somebody is so adaptable – like an MD-level person applying for a VP role – hiring managers perceive it not so much as desperation, but as a biding of time.

They think that when the markets bounce back, these very candidates will be the first ones to leave in search of something more suitable to their experience.

Don’t avoid the “r” word

If you have been laid off and have been in the job market for a few months, it’s obvious that desperation might set in after a while and that your fear may not just be monetary. You feel like your whole career is on the line.

But picking up just any old job might not be the wisest of moves. As market sentiments improve, a few more interviews are taking place now compared to six months ago. Being able to explain and justify your redundancy is a key factor for succeeding in these interviews.

So don’t avoid the “r” topic, face-up to it. If you were given reasons for the retrenchment by your former employer, tell these to the interviewer. If you have your own theory about it, be specific.

Just saying “you know how it was in Q4 2008 and Q1 2009″ is an acceptable enough generalisation, but doesn’t really distinguish you from the numerous other retrenched candidates.

If you were not given any reason and haven’t been able to figure out one for yourself, some research on your previous firm’s performance and problems around the time of your retrenchment might help too. Remember, redundancy is a much-thought-over corporate decision and not an impulsive hate crime. Don’t let fear (and anger) overcome you.