Layoffs: What to do when they are coming for you

With many companies currently downsizing, docstrats is featuring a three-part series on layoffs.

 In Part I of this three-part series, we discussed the unexpectedly bad year 2022 has been for layoffs and looked at ways to tell if your company might be planning cuts in the coming months. 

The top ten signs you might be slated for a layoff are that you:

·      Had a Bad Review.

·      Are being kept out of the loop.

·      Have been asked to define your role.

Or that your company:

·      Is experiencing financial difficulties.

·      Has implemented a hiring freeze.

·      Is initiating budget cuts.

·      Has top executives leaving.

·      Is bringing in consultants.

·      Is going through a merger or acquisition.

In Part II of this series, we look at what you can do to prepare when layoffs are imminent.

The above list of things, in and of themselves, don’t mean a job cut is imminent. But they do mean layoffs are in the air, and that you need to prepare for the possibility of unemployment so you’re aware of your options and know how you want to proceed.

 So, what should you do when layoffs are looming?

Make yourself invaluable. The best defense is a good offense, and if there’s ever been a time for overachieving, it’s now.  Volunteer to help on a project you know is long-term. Look for opportunities to add your expertise across departments. Brush up on skills you know are needed – and let everyone know you have them. The more things you’re involved in – and the more areas you’re involved in – the less expendable you are.

Brush up on your skills. Look at job descriptions of positions you’d like to pursue. Do you have the necessary skills? If not, now’s the time to take a class or pursue an online certificate. Brushing up on your skills will make you a more attractive candidate overall while ensuring you have the talents necessary to land the job you want.

Understand your benefits – and use them. COBRA can be substantially more expensive to maintain than your current coverage and many people turn to the healthcare Marketplace. While Marketplace coverage is comprehensive (and affordable), you might find you’re not able to obtain the same level of benefits you had under your company’s plan. So, now’s the time to schedule that physical, go to the dentist, fill that prescription, or get those new eyeglasses. You’ll be very glad you did!

Maximize savings, and minimize spending. It takes an average of six weeks to find a new job, and a good rule of thumb is to always keep a three-month financial “cushion” on reserve in case of unexpected job loss. If you don’t have a sufficient amount of savings accrued, the time to start looking for ways to optimize your financial situation is now.

Get familiar with your 401(k). The balance of your 401(k) matters. If it’s less than $1,000 when you leave the company, your employer can cut you a check. If it’s between $1,000 and $5,000, your employer has the option to redistribute the funds. If it’s above $5,000, your employer is obligated to continue you in their 401(k) program unless you stipulate otherwise. Now is the time to find out how much money you actually have in your account and to investigate options for what you want to do with it if you go.

Review your paperwork. Review all the contracts and employee documents you signed when you were hired (if you don’t have copies, you can ask HR). Will you be compensated for unused benefits or vacation days? Are you eligible for COBRA or unemployment benefits? Will you receive a severance package? These are the things you’ll want to know ahead of time.

Clean house. If a layoff occurs, you may not have time to gather personal belongings. Make copies of work samples, performance reviews, and other important documents. Transfer your contacts list to your personal computer. Do these things now. In the event of a layoff, it really is better to be safe than sorry.

Look into your non-compete agreement. In some states, non-compete agreements are unenforceable. In others, they’re unenforceable in certain segments – government contracting, for example. Know your state laws. You may be freer to pursue jobs – all jobs – than you think.

Update your resume. If you haven’t been updating your resume regularly (and, really, who has?), now’s the time. Promotions, projects, new certifications, or skills – are the things to emphasize.  Highlight skills particular to the type of work you want to do next. Want to work remotely? Point out your many online clients. Want to work in a foreign country? Emphasize your language and translation skills.

Network, network, network. Don’t have a LinkedIn profile? Now’s the time to create one. (For tips on creating a LinkedIn profile recruiters will love, see this article from our website.) Then join LinkedIn groups and engage with other members. Look for online and in-person networking opportunities in your field or the field you’d like to work in. Cement contacts in your current position. Collect email addresses and letters of recommendation. Inquire into who you may be able to use as a reference. You never know who might help you (or who you might be able to help) in the future.

Consider freelancing. Even if it’s temporary, freelancing can be a great gig between permanent positions. The beauty of freelancing is that you set your own course, shaping jobs around your interests and lifestyle. And the best part is — no layoffs. You get to be your own boss — free to choose the companies you want to work with and to reposition yourself as the market requires.

Is today your day to be laid off? Hopefully, it isn't. No one wants to be part of a layoff but you need to be prepared...just in case. Layoffs can happen anytime, to anyone at any company or organization.

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