Plan for the Unexpected

How to Prepare for a Layoff (Start NOW)

Let me start by saying that I am not a writer. I am not a life coach. I don't even have good advice to offer my kids half of the time. But I try. I can't tell you that what I've written here will change your life or even make a slight difference in your life. All I can tell you is that it saved me, my sanity, my family and more importantly my families sanity multiple times.

Have you ever survived a round of layoffs? Watched as friends and co-workers are told to gather what they need to go home and follow the manager to HR to find out they've been laid off before they are escorted out of the building without a chance to say goodbye? Have you ever worried "Will I be next?!"

14 years ago was my first experience with layoffs on a personal level. Things were different then. I didn't make much money and couldn't afford to be without a job or live on unemployment. I ended up working at a convenience store on night shift until I found a better option. I swore to myself then that I would not be as ill-prepared the next time around. I stayed out of Corporate America for several years to protect myself from "heartless corporations". I finally got back into a big corporation in 2013. Size being relative, it was only 25,000 employees. I had only been with the company for about a year when the first layoffs hit, and hit someone I knew. It scared the hell out of me. I doubled down on my promise and started preparing right then and there, in case it was me next time. Over the years, I continued working, but always with a plan in case things went south.

The plan I put together has now saved me multiple times since the axe fell. I make no guarantees as to whether or not this will help you. But if it helps one person through one of the toughest life events to deal with, then it will be worth it.

The Plan

Make a list... Actually, Make LOTS of lists. And have them saved somewhere you can find them in the drop of a hat. Either on your personal computer, an external hard drive, a fire-proof safe, your phone, the cloud. I don't care whether you write them down or make them in Excel (my personal preference), but make lists. Do this now! Don't wait until you just watched your best friend escorted out of the building by security. Don't wait until you walk out of the HR office with lay off notice in hand.

The Lists

"What goes on the list?" you might be saying. Patience is a virtue (so they say), I'm getting to it...

1. Potential Companies to apply for jobs.

Make a list of every company you know of that you think has potential as your next employer. Write down contact info if they don't take applications on the web. Write down the website if they do. You don't know? You never really thought about it? Start NOW! The world is different than it used to be. Technology is a blessing and a curse. In the case of being laid off, it's a blessing. Spend your lunch breaks, time after work, time before work, etc. looking up different Companies on the internet. See if you can find companies with a reputation for treating their employees with dignity and respect. If you lose your job, the last thing you want to do is jump into a toxic environment out of desperation.

Another option to consider is going into business for yourself. I had been considering doing contract work in the Oil and Gas industry for a couple of years when I got laid off last year. But I had chosen stability and ease over stress and uncertainty. As it turns out, the layoff was the push I needed. Now I'm 8 months into owning my own consulting business and so far it's going really well. I know I'll have some downtimes, but I've got work lined up to keep me busy for the next 2-3 months so far. Not to mention potential jobs coming up in a year or so.

2. Make a list of people (coworkers, friends, family, Facebook friends, Linkedin friends) you know who might be able to help you make contact with and their contact info.

It's not what you know, but who you know in many cases, so get the list going and keep it updated. While you're at it, make an effort to reach out and say hello from time to time. Nothing major. Just a "Hey! Was thinking about you the other day. Hope everything's going great for you!". The idea is to stay on their radar while being a decent human being. 2 birds, 1 stone.

3. Make a list of industries you might like to work in.

If you're happy in the industry you're in now, CONGRATULATIONS! Not everyone is so lucky. Personally, I love what I do and I've been doing it for 10 years. I wish I could say the same of everyone I know, but sadly that isn't the case. If you're one of the many people who wish they could do something else with their lives, what are you waiting for? Plan for it! Research it! And when the opportunity comes along.... LEAP ON IT!

Even if you are one of the lucky few who love what you do, depending on the market, it may be extremely difficult to be able to find another position at the time you get laid off.

4. Make a list of where you can cut corners.

Finances are the most stressful part about a layoff. Most people work paycheck to paycheck or pretty close to it. When that layoff comes, you'd best be prepared to find a way to make it. Maybe you cut down on going out to eat, or cut down on what types of things you choose to cook. Maybe you cut off your cable and just keep internet and a Netflix account. Quit smoking, quit drinking, quit Starbucks, whatever. The point is, start looking now at where you can cut when it becomes necessary. In fact, look now at where you can cut, and cut it. Take the extra money and put it into savings or pay off bills with it so that the finances aren't so stressful when the layoff comes. This is what's known as living on a budget. If you don't have a budget, I highly recommend you get one. If you need some guidance in getting out of debt, saving money and making a budget, I strongly recommend you pick up Dave Ramsey's book "The Total Money Makeover".

5. Make a list of temporary jobs you could do.

Life is a roller coaster. It has it's ups and downs. Over the last 20 years, I've found that when I hit a down cycle, the best thing to do is go out and get a part time job. About 5 years ago I found myself in a tight spot. I went out and delivered pizza 4 nights a week after I got off my regular job. I was able to bring in about $1500 a month additional income and managed to keep paying the bills. These days there are a lot more opportunities available than ever 5 years ago. With the internet and all these delivery apps out there, there is no end to the options. Deliver pizza, become an Uber driver, Deliver food through Uber Eats or DoorDash. Pet sit, dog walk, clean houses. At the end of the day, the sky is the limit. Make a list of the options you would be willing to do. Keep in mind, what you're willing to do now, while you're gainfully employed, may change drastically when you're wondering how to pay your rent when you're laid off. So even if they don't sound fun, give them some serious thought. And keep in mind, this isn't a forever job. It's to get you through until you can get your feet back under you and get a full time job again.

If you're living paycheck to paycheck and are afraid a layoff is coming. Or even if you're not afraid a layoff is coming, you can always pick up one of these side jobs in the evenings or on weekends to make a little extra cash NOW. Save it, pay off the bills, whatever you need to do to be prepared for the ups and downs of life.

6. Make a list of what motivates you

Do you have a family to support? Do you have legal financial requirements (child support, alimony, etc). Family and jail time are two things I take very seriously. I don't want to disappoint my wife and kids and I don't want to go to jail over unpaid child support. When you get laid off, refer to this list to keep you going.

7. Make a budget.

As I mentioned above, make a detailed budget so that you know where your money is going. Then make a prioritized list of all your bills and spending. House, food, utilities are all top priority and will get paid before anything else. After that, start at the bottom of the priority list and cut as needed if and when the time comes. For the record... No, I don't think your $5 daily cup of Joe is a high priority, no matter how many meme's I see that say otherwise.

Now that you've got your lists in place, discuss it with the people that could be affected (especially spouses and significant others). Let them know you have a plan in place and discuss it with them. Ask their thoughts on it, let them poke holes in it, let them be involved. They may think of something you didn't. More importantly, it will make it less stressful for them and for you when and if the time comes to put the plan in motion.

When I got laid off in September of 2018, I immediately put my plan into action. My wife was stressed, but not as stressed as she could have been. When she got upset I would remind her we had a plan. Luckily my plan included some savings and I received a small severance package. I was out of work for 2 weeks before finding a temporary job. A month and a half later I got a call for my first contract. I've been busy ever since.

At the end of the day, we all hope that we don't become part of the Big Machines Cost Cutting Measures. You know what they say about hope? Hope in one hand, crap in the other and see which fills up faster. Am I saying you're going to be laid off? No, I have no idea. But doesn't it make sense to be prepared? My Granny always told me "Hope for the best and plan for the worst" and it has served me well.

This information has gotten me through some very trying times in the past and my hope is that it will do the same for you. If you find this useful, please share it with someone you know who might also need it. Giving each other a hand is what life should be about.