You’ve gotten that dreaded letter informing you of a layoff. For most people, the experience can be traumatic. After all, this is your livelihood on which nearly everything depends including debt survival, keeping a roof overhead, and more.
On the positive side, there are moves you can make before your last workday to help you prepare.
Here are some steps to take when a layoff is anticipated.
Stay Calm
Easier said than done, right? Now is the time to keep going and reassure yourself that your furlough is just a temporary status. Not only will you likely get a comparable new job, but the layoff may be a disguised blessing: you could land even better employment. Sell yourself with your qualifications and experience.
Use the time leading up to the event to network, update your resume and improve work-related skills. Be frank with your family about your situation so that they know belt-tightening is on the horizon. You will need a united and supportive household to successfully get through this challenging time.
Prove Your Worth
Yes, you’ve gotten a letter. But oftentimes, that just means your employer is reorganizing to stay afloat and will only retain essential employees. You likely still have time to prove your value to the company in a way that might render you invaluable. If it doesn’t work, your efforts might at least net you a favorable reference.
Pack Your Stuff
Just in case, it’s time to gather all your belongings so that you don’t inadvertently leave something behind. There also may be items to collect from human resources, including documents such as performance evaluations and work samples.
Read Your Contract
Be certain to go over your employment contract and any other paperwork you signed when you were hired. Look for any notation of benefits you have coming. Examples include unused vacation days, severance, money owed, or sick leave.
Check Severance Package Policy
Find out what the company’s policy is regarding severance. If you can, determine what other employees received and don’t be squeamish about negotiating for a better package. If mass layoffs are coming, make sure the company follows the WARN Act.
Focus on Health Insurance
There are decisions to make about ensuring continued coverage if you have company-sponsored health insurance. To get an idea of what is affordable going forward, look into private as well as government health insurance.
You should also use your benefits while you have time if they end on your last workday. Get a physical, catch up on dental work, and fill prescriptions while they are still covered.
See Where You Stand with Unemployment Benefits
Unemployment benefits vary by state, so see what your compensation will likely be and start budgeting. Keep in mind that some states tax unemployment payments, which will lower your income even more.
Pay Off Those Debts
You want to pay off any debts you have as soon as possible. You will already be dealing with a lot of financial stress, so the last thing you need is credit card and other unsecured debt hanging over your head.
Ask your creditors whether they make allowances for hardship cases if you can’t resolve all your balances before the layoff. They may be able to waive fees, change your payment schedule, or temporarily reduce your rate.
This is also a good time cut back where you can on all household expenses, since you will have less income for an undetermined period. Even after you are reemployed, deposit the extra money into a savings account.
You stand an excellent chance of coming out on top if you take these steps when a layoff is looming. The main thing is to resist the natural temptation to panic.
The fact is, 40% of Americans have been laid off at least once in their career, according to Demandsage. Many saw it as an opportunity to move up the career ladder or even switch careers.