According to the Bureau of Labor Statistics, 7.9 million jobs were lost during the recession of 2007-2009. The national unemployment rate jumped from 5% to close to 10%. Afterwards, some people were able to find new comparable jobs, some people became underemployed, and others gave up looking for employment altogether.
While the economy has improved and many new jobs have been created, job uncertainty still remains in a time of political and economic volatility. A review of dailyjobcuts.com reveals ongoing layoffs of organizations such as school districts, manufacturing plants, grocery stores, and retail stores.
Layoffs can be very stressful, but they can also be catalysts for identifying priorities, career interests, and long-term goals. If you lost your job tomorrow, would you be prepared? Below are seven ways to effectively prepare yourself both professionally and emotionally in the event of a layoff.
1. Know the signs of a layoff. While not an actual preparation strategy, it is still essential to pay attention to the climate of your organization. Warning signs may begin to present themselves if your job is at risk. Subtle signs include reductions in budgets, gradual cancellations of projects, and reduced inclusion in making important decisions. More serious signs include the resignation of senior managers, changes in the way information is shared or withheld, and the consolidation of teams or divisions.
2. Establish Plan B. What would you consider doing if you could no longer work at your current job? Plan B could consist of a temporary or bridge position that provides you with great exposure and contacts as well as a chance to develop new skill sets. Think about your major accomplishments, especially those that support Plan B. Update your resume accordingly, and pay attention to organizations and positions of interest. Some opportunities may be cyclical, so keep your resume fresh by updating it with relevant activities while you are job hunting.
3. Strengthen your network and support system. Build rapport with colleagues and bosses so that you can use them as pipelines for information and future references. Don’t burn any bridges, and stay in touch with former coworkers and bosses by obtaining preferred contact information. Enhance your LinkedIn profile, but if you need to be discrete with your current organization, do not make it look too obvious that you are looking for new job opportunities.
4. Develop an action plan. Know what career and employment resources you can utilize including your university’s alumni career services, outplacement services, and community resources. Create a self-care plan and job search schedule that includes physical exercise as well as social events for networking. Develop a response summarizing your new career goals for when people ask you what happened. Creating an action plan now will help you avoid feeling like a victim later.
5. Assess your finances. Based on your level of experience, an extended job search to find a comparable position could take six months to a year. Make sure that you have sufficient funds available to weather such a period. Assess your fixed versus discretionary costs to determine your monthly budget while in search mode. Make sure you include costs such as healthcare that may be part of your employer provided benefits but that you now need to pay out of pocket. Assess the funds available during this period. The funds available should consist of your cash assets, non-retirement funds, and as a last resort, lines of credit. Avoid retirement (IRA, 401K, 403B, etc.) and educational (529, college savings, etc.) accounts as you will lose significant money to penalties due to early withdraws. Create a balance sheet so that you have a firm understanding of where you stand financially to weather a potential career transition.
6. Prepare yourself professionally. Make yourself as productive and invaluable as possible within your organization. Volunteer for new projects, and be willing to learn new information. Get yourself known within other departments in case internal transitions are possible. Additionally, assess whether there are skill gaps that you need to develop. Definitely upgrade your technology skills, but don’t forget about improving soft skills like communication and leadership. See what type of training you can complete now to develop a portable portfolio of skills that you can utilize in any organization. Companies are less likely to target employees who are productive and knowledgeable of many aspects of their organizations.
7. Know your policies. Be aware of your HR policies regarding insurance, leave, and unemployment benefits. If you have a ton of vacation leave squirreled away, will you get compensated for it, or should you start using some of it? Start backing up important computer files that you might need in another job such as performance reports, important documents, or samples of your work. When layoffs are set in motion, computer access is often quickly cut off. Make sure you respect your current organization’s confidentiality, and be aware if you have signed any non-compete agreements that could restrict pursuing new opportunities.
While potentially traumatic, a layoff could be a blessing to do what you always wanted to do but haven’t done as a result of feeling trapped in your current job or career path. If you have ever considered relocating to a different city, developing additional skills, or trying something new, a layoff could actually provide you with the freedom to do so. The most important thing about facing a layoff is to stay positive and to not take it personally. While a layoff may feel like a setback, it can be turned into a new beginning. How you manage a setback is usually more important than the actual setback. A gap of the time that it takes to find the next opportunity will not be perceived as damaging your credibility if you have planned accordingly. Use your down time to network, learn new knowledge and skills, and volunteer when possible.
Tonya Osmond, EdD, LPC, is a Career Consultant and President of Quantum Career Consulting, LLC. With more than 20 years of career counseling experience, she is a licensed professional counselor in both Maryland and Virginia.