Job security is something many of us take for granted too often. Whether it’s because of poor business or the fledgling economy, layoffs often times take employees by surprise. Even if you’re performing well at work, you should always be prepared to lose your job just in case. As with anything in life, you never know what could happen and that includes losing your primary income.
So what do you really do if you get laid off? Taking these 5 steps will help you get back on your feet more easily:
Don’t Panic
First off, take a deep breath. Don’t let yourself go into panic mode. Yes, getting laid off is awful. And yes, it’s normal to be upset, angry, or sad. Take a few days to let it sink in. While it may be hard to keep your emotions in check, try to remain as calm as possible so that you’re level headed when thinking about your next moves.
Understand the Terms of Your Termination
Being laid off can be be much more complicated than you think. Before you walk out the door for good, make sure you properly understand the terms of your termination. Often times, HR will give you a letter of termination. While these are fairly standard and are used to protect the company against wrongful terminations, take a day to read through the document before you sign on the dotted line. Don’t hesitate to ask your HR department if you have any questions. It may even be wise to consult a lawyer if something smells fishy.
There are other details you want to make sure you hash out too. If you are getting a severance package, understand the exact payment amount and when they expect to pay you. If there are different options, make sure you understand the long term consequences of the decision you are about to make. Also ask when your benefits will start and when it’ll end. Lastly, this may sound like a no-brainer but confirm your last day with the company so that you know when that last paycheck will come.
Organize Your Belongings
If you’re laid off, you’ll be expected to leave the company either immediately or in the near future. It’s smart to begin to organize your belongings, both physical and digital. Start to pack up your personal items from your desk to ensure you don’t forget them. If you have any personal files on your computer, back them up so that you have them for your records. However, as a disclaimer, you should not be taking anything that is company property, whether physical or intellectual.
Reach Out to Your Network
Once you’ve processed everything and are ready to take your next steps, start thinking about reaching out to your network. Let connections in your industry know that you are available for hire and looking for new opportunities. This can be done simply via LinkedIn and through email. While you might not hear from anyone immediately, this will help you gage the industry and see what’s out there. And if you’re in luck, you might just know someone who knows someone who is hiring.
Many companies also offer assistance for job placement. Speak to your HR department about whether this is a possibility.
Plan the Next 3 Months
Taking anywhere from 3-6 months to land a new job is typical, so plan for a few months without having additional income, just in case. Redo your budget and cut back where you can. Understand when your investments will pay you and plan out your cash flow. You may have to temporary switch dividends to be paid out to the checking account instead of having it reinvested, and doing so earlier may save you a small amount of commissions and headache. The best case scenario is that you will find a new job quickly, but it could take months in a volatile job market. Be as prepared financially as possible.
David’s Note: Did you listen to what Connie just said? It could take 3, 6 months or even longer to find your next job. I know the economy is humming along and no one is really thinking about getting laid off, but the good times is the perfect time to get financially prepared. Do you have an emergency fund to deal with a job loss, or at least a way to pay for your expenses without a paycheck? Know exactly how you are going to deal with no employment income before the situation happens. I don’t have a separate emergency fund, but I can cut back on some discretionary expenses and start using the interests and dividends from my investments to tide me over the potentially difficult period. Do you have the resources, and do you know how to deal with a financial emergency?
Being laid off is never a good experience, but it could be a blessing in disguise and lead you to bigger and better opportunities. Being prepared will help ensure a smooth transition.