Coping With Job Loss: 6 Essential Strategies and Lessons Learned
In 2017, I experienced my first layoff. Until that point, I had worked in a stable industry and had little understanding of what a layoff entailed. However, the reality of unemployment hit me hard. I had just helped uncover significant fraud at my company, preventing an estimated $1 million in lost revenue. Despite this, my position was eliminated, and I was thrust into a world of uncertainty, navigating a layoff for the first time.
The initial shock was profound. I lived two hours from my workplace, commuting daily and sacrificing personal time and energy. Yet, the company I believed valued me had let me go. The following month was filled with fear and confusion. I had minimal savings and initially refused to sign the severance agreement, feeling betrayed.
Eventually, I realized action was necessary for my layoff recovery. I opened my severance package, applied for unemployment, and embarked on a rigorous job hunt. After numerous rejections, a recruiter offered me a contract position, marking the beginning of my journey as a full-time contractor. This experience taught me invaluable lessons that prepared me for my second layoff in February 2024.
Reflecting on my experiences, I would like to share with you five things I would immediately do if I had to do it over again.
1. Prioritize Contract Positions
Contract positions are often easier to secure and provide several benefits:
Understand Your Contract Terms: Before accepting a position, understand the terms, especially if you aim for a full-time role. Some contracts include clauses that can restrict future employment opportunities with the same company.
2. Build a Network of Recruiters
Establishing authentic professional relationships with recruiters is essential, even if you are not currently job searching. Select 2 to 3 recruiters who specialize in your industry and start developing genuine professional relationships with them. While this may seem like an easy task, it’s important that these relationships feel natural. If it feels forced, continue your search until you find a good fit. Maintain these connections by taking local recruiters out to lunch, sending thank-you cards, and scheduling quick 15-minute check-ins. Stay visible and present. You can search for recruiters to establish relationships with on platforms such as iRecruit
A Recruiter Network is Beneficial for Two Reasons:
Note: This relationship benefits the recruiter as well. I have maintained professional relationships with three recruiters over the years. If a colleague or someone I know is looking for a job and is a good fit, I refer them to my recruiters, creating a mutually beneficial professional relationship.
3. Re-Consider Working Extra Hours!
When evaluating your work-life balance, consider this: if your job requires 40 hours per week, how many extra hours are you working without compensation, or AFTER taxes, is the amount you take home less than half of what you earned?
The Hidden Costs of Overtime for Hourly Employees: When considering working overtime, it’s crucial to evaluate the hidden costs beyond the immediate financial gain. While overtime pay can boost your paycheck, the actual take-home amount may be significantly reduced due to higher tax rates. Additionally, the physical and mental toll of extended work hours can lead to exhaustion, decreased productivity, and potential health issues. This impacts your well-being and reduces quality time with family and friends.
Often employees work extra hours because they want to help the company or their colleagues, even at their own expense. My question is, if the tables were turned, would the company help you out?
This question encourages employees to think critically about their work-life balance and the reciprocal nature of employer-employee relationships. While some companies do support their employees in times of need, it's important to recognize that not all do. Evaluating the company's track record on employee support can help you make informed decisions about whether or not to sacrifice personal time for the benefit of the organization.
Consider alternatives to overtime, such as building a second income that requires less physical effort and mental stress. Although developing a second income stream might not seem financially beneficial in the short term, once established, it provides multiple options to generate income with less effort. The added bonus is that if you are laid off, having an income stream separate from your current position gives you control over your financial security and ability to generate income. This long-term approach can lead to greater financial stability and flexibility.
Working for Free: Salaried Employees: As a salaried employee, any work beyond those 40 hours is essentially unpaid. Recognizing the value of your time can help achieve financial stability after a layoff. If you're working beyond your regular hours without additional compensation, you're investing your time and skills with a high risk of return. Instead of relying on the uncertainty of bonuses or promotions, consider investing in yourself, where you have more control over your success. Give Yourself a Promotion or Bonus!
4. Start Now! Establish a Second Income
According to the Bureau of Labor Statistics, over 6 million Americans were laid off, and it is estimated that in 2020, homelessness increased by 45%, potentially linked to unemployment due to COVID-19. These numbers underscore the importance of having a second income stream whenever possible.
Benefits of a Second Income:
While a second income is beneficial, it’s crucial to maintain a balance. At one point, I worked my regular contract position and a full-time overnight job, which led to exhaustion and near hospitalization. I did this to ensure that I would never allow myself to be financially dependent or vulnerable concerning my financial security. It is important that you find a balance that works for you.
Leveraging Technology for Passive Income Technology has advanced significantly over the past seven years, offering numerous online passive income opportunities where you can work remotely or even during your lunch breaks! For more information on recommended passive income streams, consider exploring:
Recommended Resource: Amazon Associates
Recommended Resource: Udemy | Teachable | Kindle Direct Publishing
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Recommended Resource: Shutterstock | Adobe Stock | iStock
Recommended Resource: WordPress | Medium Partner Program
Recommended Resource: YouTube Partner Program | Anchor
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Recommended Resource: LendingClub | Prosper
Exploring these avenues can help you find the right fit for your skills and interests, enabling you to generate passive income and achieve financial stability. Keep in mind, establishing a second passive income may not bring in immediate income, but in the long-term, if you put the effort in, you may even be able to quit your job altogether!
For more information on recommended passive income streams, click here.
5. Begin Networking for Career Development
Harvard Business Review offers valuable insights into effective networking as a key component of career development. Although it may be somewhat controversial, I recommend dedicating most of your networking efforts outside of your current company. If you are laid off, you do not want your most recent connections to be those who are also struggling to find their footing. Additionally, focusing your networking externally broadens your reach to people connected in various fields, enhancing your opportunities for job prospects in different industries.
Attend local networking events in your desired career field rather than unemployment events. Building relationships in your industry can lead to unexpected opportunities. If your field has an association or certifying body, join the local chapter and become active. You can also leverage online platforms such as Meetup.com to find local events in your area or even start one of your own!
Your approach to networking should not be to find a job but to build genuine relationships with those in different fields you want to learn about or with people in the same field who share similar interests. In the event you find yourself unemployed, it is far easier to find a position among a smaller group of peers with whom you have a genuine relationship than a larger group where you’ve simply collected their information or established a quid pro quo relationship. Authenticity is key.
6. Acknowledge Layoff Trauma
Being laid off can be physically, emotionally, and mentally traumatizing. It is important to know the signs and symptoms of psychological trauma.? Utilize any mental health services included in your severance package or seek government services if necessary. Acknowledge your feelings and understand that it’s a normal reaction to a challenging situation.? BetterHelp is a free assessment you can take to find convenient and affordable therapy.
By incorporating these lessons and strategies, you can navigate the challenges of a layoff and emerge stronger and more resilient.
About the Author
Ida P. Mack is the founder and Managing Director of LuminEssence Consulting Group, a boutique agency specializing in leadership development and providing solutions for complex business challenges. With expertise as a Lean Six Sigma Black Belt, certified Agile Coach, and Agile Workshop Facilitator, Ida has dedicated over two decades to problem-solving. Her experience culminates in the authorship of Escaping the Hamster Wheel: A Disruptive Approach to Solutioning Complex Business Problems and its companion workbook.
After experiencing two layoffs, Ida has committed her career to Protecting Employees by Empowering Leaders. She believes that layoffs are the result of leaders who are not empowered and lack the voice to address complex business problems proactively. Ida is dedicated to providing the resources and tools necessary for leaders to empower themselves and take accountability for preventing the new norm of layoffs.
Connect with Ida Mack on LinkedIn and learn more about her work at LuminEssence Consulting Group.
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Leadership Development through Coaching, Advising & Workshop Facilitation | Past Global Leadership Roles in Biotech & Pharma | Supply Chain | PMO Leadership | Enneagram Accredited | Deep Coaching Certified
8 个月Great advice, Ida!
Strategic Advisor & Trusted Thought Partner | Purpose Driven Project & Business Operations Manager | Insatiable Learner
8 个月Wonderful article, Ida! Great resources too! It pains me to see so many great professionals out there being fed into the “bottom line adjustment”. Many long-timers too: I see people being laid off after 10-15 years in their current company. My hope is that it leads to disillusion all the hard-workers putting 50-60 hours on the clock because they are so invested in their companies so that they will start prioritize their health and wellbeing. If this happens widely enough, employers will have to reconsider taking hard work for granted too. But that’s a very long-term shift (if it does happen)