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Transforming Career Setbacks Into Career Success

January 8, 2025 | Kelsey Casselbury

Every success story includes at least a few failures. Although one of the most popular myths—that Albert Einstein failed math in school— isn’t true, there are plenty of verifiable stories about high-profile setbacks: Michael Jordan really did fail to make his high school varsity basketball team as a sophomore. Apple’s board of directors ousted Steve Jobs in 1985, even though he was a company co-founder. And prior to his own prosperous TV show, Jerry Seinfeld showed up to another sitcom’s table read, only to find that he’d been written out of the series after just a few episodes.

What do these examples illustrate? Even during the most successful climb on the career ladder, you’re bound to occasionally slip down a rung or two. Whether that slip is a result of losing your job, receiving a poor performance review, or even suffering from professional burnout, career setbacks are far more common than you might think. Often, though, no one talks about them—after all, people like to publicly tout their successes rather than their perceived failures.

And yet, a career setback does not equal a failure. While it’s natural to feel dismayed—or even devastated— when something doesn’t go your way, a setback doesn’t mean that your career ladder has tipped over on its side.

“In reality, the more you try new things, the more setbacks you’ll have,” says Dawn Graham, Ph.D., a work and career psychologist and author of Switchers: How Smart Professionals Change Careers and Seize Success (AMACOM, 2018). “If you’re not experiencing at least some misses, chances are you’re playing it too safe and missing out on some great opportunities.”

The key to righting your proverbial career ladder is developing and employing a growth mindset to learn from and overcome unexpected career challenges, then taking actionable steps to allow the setback to lay the groundwork for future success.

“If you’re not experiencing at least some misses, chances are you’re playing it too safe and missing out on some great opportunities.—Dawn Graham, Ph.D.”

On the Grow

A growth mindset, popularized by psychologist Carol S. Dweck, refers to a personal philosophy that it’s possible to develop and improve both your skills and emotional intelligence with effort, time, and perseverance. It contrasts with a fixed mindset, which sees success as a product of unchangeable, innate ability and circumstances—i.e., “This is who I am, and this is the way things are.”

Characteristics of people applying a growth mindset to their personal and professional life include:

  • Finding value in negative feedback. 

  • Having the willingness to learn from mistakes.

  • Asking questions, seeking clarification, and defining expectations.

  • Being able to admit when they don’t know something.

  • Seeking out challenging tasks in an effort to grow. 

  • Taking inspiration and learning from the success of others. 

“Professional success is not just about inherent talent or having lucky circumstances; it’s about willingness to learn, courage to fail, resilience to adapt, and discipline to grow,” says Ashley Miller, SHRM-SCP, an expert in organizational psychology and director of operations for SHRM CEO Action for Inclusion & Diversity. “Research and real-life stories have shown us these characteristics can make all the difference.”

When you apply a growth mindset, career challenges are stumbling blocks but not roadblocks. They’re a chance to take a step back and evaluate what led to the precipitating event:

  • Perhaps your experience and skills didn’t match the needs for a job you interviewed for. Experience comes with time, but how can you actively work on developing those skills? 

  • A bad performance review might be the result of resistance to change or a lack of desire to learn new skills. How can you overcome your hesitation about new ventures?

  • Burnout often comes with a lack of professional boundaries. How can you work with your manager to ensure it doesn’t happen again? 

  • Leaving the company via a layoff wasn’t your choice (or necessarily your fault). How can you make yourself more marketable or network to find a new position?

However, shifting to a growth mindset isn’t a simple flip of the switch, Miller notes. “It also requires learning, dedication, and practice,” she says. “If you don’t know how to start, I recommend learning more about the science behind the brain’s ability to grow and change. Studies have shown learning more about this increases people’s likelihood to take on challenging tasks and improve their performance over time. Ultimately, the most successful professionals are those who view challenges as a chance to grow.” 

Ultimately, the most successful professionals are those who view challenges as a chance to grow.—Ashley Miller, SHRM-CP

Translating Growth Into Action

Committing to a growth mindset is one thing, but laying the groundwork and implementing it is another. Take concrete steps toward addressing the setback and transforming it into a building block for future success. While the steps below don’t need to be followed in this exact order—and the duration for each step is entirely individual—set aside the time you need to fully realize each one.

Step 1: Allow Yourself to Process. Even if you understand and accept the root cause of the “failure,” it’s still likely to be emotionally distressing. Grant yourself grace to mentally sing the blues, but practice self-care along the way: Get enough sleep, spend time in nature, reconnect with friends, and immerse yourself in hobbies.

However, avoid falling into the trap of blowing the situation out of proportion (“I didn’t get the promotion, so I will never become a senior director!”) or dwell on your perceived faults for too long. In due time, you and others will move past the setback—after all, there’s no scarlet letter emblazoned on your chest reminding others (or yourself) of what you’d rather forget.

Step 2: Examine What Led to the Setback. It’s tempting to distract yourself from a negative experience, Graham says, but you’ll do yourself “a huge favor by examining the details, getting additional feedback, and mapping out an action plan.”

If the situation allows, schedule time with your supervisor to talk through what happened. Ask for advice on how to improve your skills—or for feedback on other circumstances that led to your setback—to ensure a better result in the future. If you left the company (voluntarily or not), reach out to a therapist, mentor, career coach, or trusted friend to help you reflect.

Related: Fostering a Growth Mindset: HR’s Role in Building a Future-Ready Workforce

Step 3: Re-evaluate Your Definition of Success. Standard success metrics, such as salary, title, and responsibilities, vary by industry, geographic location, and other factors. In other words, they’re not always the most valid measures of success, Graham explains. Consider other ways to define what success looks like for you, such as effective work/life integration, short-term goal achievements, or personal fulfillment from the work you do.

“Reframing failures as part of the process for learning is helpful,” says Nabil El-Ghoroury, Ph.D., a psychologist and global speaker on mental health and workplace culture. Thomas Edison had hundreds, if not thousands, of setbacks while inventing the light bulb, he says, and “each attempt was helpful in figuring out what was and was not needed for the invention. Reframe success to think about progress, rather than perfection.”

Reframe success to think about progress, rather than perfection.—Nabil El-Ghoroury, Ph.D.

Step 4: Seek Out Professional Development. When you analyze what led to the setback—or how you could come out of it in a stronger position—you’ll likely discover ways to close skills gaps, build leadership and other interpersonal proficiencies, and shift your approach to work.

“Continuous learning is no longer optional in a world where roles are constantly morphing and, in some cases, becoming obsolete,” Graham says. She recommends that people learn at least three resume-building, in-demand skills each year to stay relevant in the job market.

While you can spend money on getting a degree or certification, attending conferences, or hiring a career coach, professional development doesn’t have to be expensive. SHRM Members have access to on-demand and live webcasts, newsletters to keep up on news and trends, and SHRMConnect, an online community to ask questions and get feedback from other HR professionals, among other resources.

Other free and low-cost ways to grow professionally include listening to podcasts or checking out library books on business and leadership, connecting with peers on LinkedIn to learn more about their career growth, and attending local networking events or seminars.

Step 5: Get Back on the Horse. At some point—whether it’s weeks, months, or a year—you’ll feel ready to try again. This time, however, your lived experience and growth mindset will allow you to approach your work and goals in a way that lays the path for career success.

“A helpful character I think about is Dory from ‘Finding Nemo,’ ” El-Ghoroury says. “Her strategy was ‘Just keep swimming,’ which, at its core, is truly a growth framework. As long as you’re still swimming, you can figure out what can help you out in your work.”

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