How To Navigate Getting Laid Off
Blaine Thiederman MBA, CFP?
Helping You Build & Preserve Wealth | Tax & Financial Planning Expert
Losing your job can be a traumatic experience, especially if you were not expecting it. The sudden change in your circumstances can leave you feeling lost, overwhelmed, and uncertain about your future. However, with the right mindset and approach, you can navigate this difficult period and come out stronger on the other side. In this article, we will discuss some strategies for coping with being laid off and finding a new job.
First and foremost, it is important to remember that losing your job is not a reflection of your worth as a person. It is simply a result of economic factors that are beyond your control. You are not alone in this experience, as many people are facing similar challenges.
Try not to take it personally and avoid blaming yourself.
One of the most important things you can do after being laid off is to take care of yourself, both physically and mentally. This includes getting enough sleep, eating well, and staying active. Exercise can be a great way to release stress and boost your mood. It's also important to stay connected with friends and family, as they can provide support and encouragement during this difficult time.
Next, you should start thinking about your next steps. This might include updating your resume and online profiles, networking with people in your industry, and researching job opportunities. It's also a good idea to reach out to your professional contacts and let them know you are looking for a new opportunity. This can help increase your visibility and open up new doors for you.
When it comes to interviewing for a new job, (this may seem obvious) it's important to be honest about your experience, skills, and qualifications.
However, you should also focus on the positive aspects of your experience, such as what you have learned, how you have grown, and what you can bring to a new role.
Also, don't be afraid to ask questions during the interview process, as it shows that you are engaged and interested in the opportunity.
Another important aspect of finding a new job is being open to different types of opportunities. This might include looking for a job in a different industry, taking a temporary or contract role, or starting your own business. Being open-minded can increase your chances of finding a job that is a good fit for you.
Finally, it's important to remember that finding a new job is a process, and it may take some time. Be patient and don't get discouraged if it takes longer than you expected. Keep in mind that the right job is out there for you, and you will find it when the time is right.
In conclusion, losing your job can be a difficult and stressful experience, but it is not the end of the world. With the right mindset, approach, and strategies, you can navigate this period and find a new job that is a good fit for you. Remember to take care of yourself, stay connected with others, and remain open-minded about new opportunities.
Prior to the layoff
Press and rumor handling
At big tech companies, you may hear rumors about layoffs long before the layoff itself—especially if you are hearing rumors about reducing your workforce internally or externally. The news may report headlines and social media speculation days (or even months) before anything is officially announced—a cycle that can be both frustrating and exhausting, as it further exacerbates the feelings of uncertainty that already surround getting laid off.
When the press contacts you (whether locally or through emails or outreach on social media platforms such as LinkedIn, Instagram, Facebook, Twitter, or TikTok), you decide whether or not to reply. We will not make a recommendation one way or another as it is your choice; however, if you decline an interview or respond, “No comment” and reports keep pestering you, it's also acceptable to ignore the reporter's request and/or block their number.
During this period, your family and friends may also ask you questions about your work, especially if they haven't heard of your company or what you do. It may be necessary to set some boundaries with loved ones or to be selective about whom you share your feelings with, even though the outpouring of support is likely to come from a good place.
The stress, anxiety, and heightened emotions that accompany layoffs are just as important to take care of before, during, and after a layoff. (More on that below.)
Worrying about the company leaving a stain on your reputation
When a company goes through layoffs, it can be a worrying time for employees, especially if they fear that their reputation may be tarnished as a result. However, it is important to remember that the cause of the layoffs and the decisions made at the executive level are not the responsibility of individual employees.
For example, if someone has "WeWork" on their resume, a future employer would not assume that the individual's actions as a product manager or community director had any impact on the company's struggles. Instead, having experience at WeWork shows that the individual is capable of delivering high-quality results under pressure, working cross-functionally, and having experience with the agility required at a hyper-growth startup, all of which are positive attributes.
If you have a sense that you may be impacted by upcoming layoffs, it can be helpful to focus on the things that you can control. This may include bringing up employment agreements and contracts, collecting personal files and documents, and taking note of any financial or health-related accounts that were connected to your job. It is also important to prepare for the possibility of your email and Slack being deactivated, by downloading any important metrics, examples for your portfolio, and contact information for clients and colleagues whom you want to keep in touch with.
While layoffs can be a difficult and unsettling experience, it is important to remember that they are not a reflection of your professional performance and that you have the ability to control certain aspects of the situation. By being proactive and preparing for the possibility of a layoff, you can feel more in control and confident about what comes next. Additionally, it is important to remember not to take any proprietary information that belongs to the company.
If you have a sense you might be impacted by upcoming layoffs
With so many of us dedicating a huge portion of our lives to work, a pending layoff may feel like a huge shock to the system, like your world is being destabilized. Suddenly, your job goes from your “certainty” bucket to your “uncertainty” bucket—and that can feel daunting and lower your confidence, to say the least.
Often times it helps to turn your attention inward, to the things you?can?control. If you have a strong sense that you might be laid off, here are some steps you can take to prepare and feel more in control of an otherwise uncontrolled situation:
Recommended Reading:
Getting that calendar invite. You know the one.
Did you get the calendar invite for a group meeting or Zoom call, or maybe a 1:1 with your manager? Layoffs may look and feel entirely different these days depending on whether or not you’re working remotely. Here’s a general idea of what to expect:
For reference,?here’s an example of communications that were sent to Carta employees ?around a 2020 Covid-related layoff.
During the Layoff
A note about the following information: I'm not a legal professional, and as such, the following does not constitute legal advice. We suggest consulting with a lawyer or legal professional for further information.
Separation or severance agreements
Generally, in the US, an organization will want its employees to sign a separation agreement upon termination of employment. Though the document isn’t required by law, companies often utilize these agreements as a way to protect themselves from possible legal trouble down the line or to keep company information confidential. When signed by both parties, the agreement ensures that the terminated employee won’t take further legal action against the organization.
The bigger the company is, the more important it is to them that they have employees sign a separation agreement—and frankly, can be a liability for them not to offer one.
That said, you don’t technically?have?to accept the separation agreement provided. And although a uniform separation or severance agreement may be offered to all employees impacted by a layoff, there’s nothing that says you can’t attempt to negotiate certain parts of the agreement if you don’t like the terms being offered and want to try to negotiate for better terms.
If you don’t fully understand what you’re being asked to sign, we strongly suggest speaking to a lawyer or advisor before signing.
Recommended Reading:
After getting laid off, make sense of severance and know how to negotiate
When an employee is laid off, they may be offered severance pay, which is compensation for their termination of employment. This pay is typically calculated based on the length of time the employee was with the organization and can be provided as a lump sum or over a longer period of time. It is important to note that while the Fair Labor Standards Act (FLSA) requires that the company pay the employee's usual wages through their last day of employment, there is usually no legal obligation for the employer to offer severance pay.
If a severance package is offered, it is recommended to review the agreement with a lawyer before agreeing to the terms. Although negotiating severance pay can be difficult, especially during mass layoffs, it can be worth it to ask for a review of the package. Even if the company cannot negotiate the severance pay itself, it may be able to negotiate other benefits such as paying out unused PTO or continuing contributions to the employee's health insurance premiums.
It is important to identify each component of the severance package to determine if anything is missing, as the benefits of negotiating for a better overall package can outweigh the risks. It is important to consider all options and make the most of the severance package offered.
The following are common elements of a severance package:
If you do decide to negotiate your severance, make sure you're prepared. Determine what you want to ask for and why. If others in the organization were laid off, learn about their package to determine if your offer is fair. Consider what leverage you have in the negotiation to use to your advantage. The more prepared you are, the better the negotiation will go.
Again, we’re not employment lawyers, so we’d advise you to speak with a professional before taking action. Below are some excellent supplemental resources for navigating severance, along with a checklist of things you can look out for (or perhaps ask for) in a severance package.
Recommended Reading & Resources:
What to Expect in a Severance Package ?(Alison Doyle, The Balance Careers)
How to Negotiate a Severance Package if You Are Laid Off ?(Deborah Acosta, The Wall Street Journal)
How is Severance Pay Calculated and When Is It Due? ?(U.S. Department of Labor)
Half of employers are planning layoffs - here's how to negotiate your exit if it happens to you ?(Jennifer Liu, CNBC)
The following things MIGHT be part of a severance package, and are good to be aware of when reviewing your offer:
After the Layoff: The First 24 Hours
In those first 24 hours if you got laid off:
After the Layoff: The First 7(ish) Days
Step 1: Process the logistics
Separating from a company can be a difficult and emotional experience, and it is important to take the time to process what has happened and to grieve as needed. Before jumping back into the job search, it is recommended to take at least 24 hours to process the situation. If possible, it is suggested to give yourself until the following Monday to start your search, to give yourself structured time to reflect and process, and a tangible "start date" for when you'll take action.
Ruth Rama-Witt, a career coach, suggests taking at least a week to step back, take care of yourself, and breathe. It is important to do something you enjoy and to take the time to do things that you never had the time to do before. It is also recommended not to do any work or start your job search yet. This recommendation is more of an art than science, so it is important to go at your own pace.
It is important to remember that the job search process can be a long and difficult one, and it is important to take the time to process what has happened and to take care of yourself. It is essential to give yourself structured time to reflect and process and to have a tangible start date for when you'll take action. It is important to remember that you are not alone in this process, and there are resources available to help you navigate through this difficult time.
Compute your runway
Use a free budget calculator tool ?to determine when you?have?to have your next job by. Keep this target date in mind and write it down so it’s front and center.
If you need immediate financial assistance and aren’t in a place to take time off between roles—perhaps the company that just went through layoffs didn’t provide severance or your financial situation requires a more immediate solution—here are places to search for gig or freelance work straight away:
Set up health insurance
If you need help understanding your options and the nuances of each, click here to get a complimentary consultation with a financial planner who'll guide you on which health insurance makes the most sense.
File for?unemployment benefits
Rollover or transfer your 401(k)
The question of what to do with your retirement account when you leave your company can be stressful. Look into your options, consult a fiduciary financial planner like Progress Wealth Management, and evaluate what the right decision is for you. We offer this service at no cost at all.
Generally speaking, if you have more than $5,000 invested in your 401(k), most plans allow you to leave it where it is after you separate from your employer. If you want to roll it over but don’t yet have a new employer (which, assuming you were laid off, you likely don’t), you can roll over your 401(k) into an individual retirement account (IRA). We’re not financial advisors, so would recommend speaking with a professional before taking action. The below resources can help you navigate next steps.
Recommended Reading:
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Understand what happens with your Flexible Spending Account (FSA) and Health Savings Account (HSA)
Determine what to do with your equity
If you had stock in your company, it’s important to understand what kind of equity you have (e.g., restricted stock units (RSUs), stock options like ISOs, and NSOs), the time frame they have to exercise, the process to exercise, and the tax implications. The standard time frame for employees to exercise their options post-termination is 90 days, but companies may have shorter or longer windows, so it’s important to know the timeframe in which you’ll need to act.
We think that for many, equity is too complicated to DIY on your own. Contact Progress Wealth Management for free help analyzing the tax implications and the equity compensation you have.
Assess your life insurance policy
Typically when you’re laid off, you’re no longer part of that group (i.e., company) life insurance policy. Generally speaking, whether or not you need life insurance depends on your individual financial goals; it’s most important if your death would place a financial burden on others.
Ensure the company has your most up-to-date mailing address
This is so they can send your final paycheck and any outstanding balances that are due to you. This may include but is not limited to:
Request a letter of unemployment from HR
If they can’t print a letter on letterhead, an email from the head of HR (with full name and title on the message) should suffice. You may need this?letter to claim unemployment?benefits.
Take a moment for yourself each day
Step 2: Process your feelings
It is important to prioritize self-care and mental well-being when dealing with the stress and uncertainty of job loss. Losing a job is considered one of life's most stressful events and it is important to give yourself time to process the change and to let things sink in. It is not necessary to wallow in the feeling forever, but it is important to acknowledge and validate your emotions before moving forward with the job search process.
To aid in the process of self-care and mental well-being, it is suggested to utilize the following tools and resources:
It is important to remember that job loss can be a difficult and stressful experience and that it is important to prioritize self-care and mental well-being. The above tools and resources can help to provide support and guidance during this time and it is important to take advantage of any resources provided by your former employer. Remember to be kind to yourself, and know that it is normal to feel a range of emotions during this time.
Mental Health & Meditation Resources:
Step 3: Do some soul-searching
When evaluating your career path, it is essential to consider what you want in your next role. Are you looking to stay in the same field but in a different company, or are you considering a complete career pivot? Having a clear understanding of what you want will make the job search process more efficient and effective.
It is important to remember that in a job search, you are your own worst enemy. If you are uncertain or complacent about what you want, the process can become cumbersome. However, having clarity can greatly accelerate the process. To aid in this process, there are free workbooks and resources available on the Progress Wealth Management website to help you gain clarity and navigate the job search process.
Some of our recommendations include:
It is important to remember that you are not alone in this process, and there are resources available to help you gain clarity and navigate the job search process. By taking the time to reflect on what you want and by utilizing these resources, you can increase the chances of finding a role that aligns with your goals and values.
Step 4. Get your network working for you
When it comes to looking for a new job opportunity, it is important to ensure that your LinkedIn profile is up to date and represents the best possible version of yourself. While you may not need to worry about your resume just yet, having an updated LinkedIn profile can be beneficial when posting publicly about your job search. This is because when you post, it is likely that your profile will receive a lot of attention, and people will be looking at your profile for the first time.
To ensure that your LinkedIn profile is in the best possible shape, it is recommended to use a LinkedIn Expert or find someone else who's in your industry that has a lot of clout and copy the way they structure their LinkedIn profile.
In summary, it is important to ensure that your LinkedIn profile is up to date and represents the best possible version of yourself when looking for a new job opportunity.
Though it can be difficult, emotional, and often vulnerable to post about the layoffs, we live in a time where there’s no longer the same stigma there once was about being “open to work.” Layoffs were rampant in 2020, and with that, a normalizing of announcing that you were looking for new opportunities.
We suggest that you do so sooner rather than later so that a) you and fellow company alumni can support one another at the same time—there’s power in solidarity, and b) so there are more people looking out for you sooner. It may feel tough to ask for help, but keep in mind that people generally?want?to be of assistance with your search. There’s also something really special about the way the LinkedIn community can come together to rally and help one another.
If you don’t want to craft a LinkedIn post from scratch, here’s some template language you can copy, paste, and tweak as needed (just be sure to customize it before posting). A few tips to keep in mind:
How to Turn on the “Open to Work” Banner:
There’s been some controversy lately on whether or not job seekers should turn on the green “Open to Work” profile banner. Some people claim that it looks desperate—but we’d argue the opposite.
Here are three reasons we recommend turning on your #OpenToWork banner.
Of course, if your profile’s optimized with keywords, accomplishments, and metrics, you’ll still pop up in recruiters’ search results—even if your #OpenToWork banner isn’t on. But it can’t hurt to test it out and see what happens. (A 2020 study from LinkedIn found that turning on “Open to Work” increased your likelihood of getting a recruiter message by 2x.)
Add Yourself to a Layoff List:
To go beyond traditional networking, self-submit to a list of folks impacted by layoffs to help get more eyes on your LinkedIn profile and qualifications. Sometimes affected employees will self-organize, and other times there are industry-specific lists compiled by folks who are trying to help others land jobs. A few of our go-to's:?
After the Layoff: Beyond the First Week
Step 5: Research & Prepare for Your Job Search
One of the most challenging aspects of being laid off is the sudden change in structure and routine in your life. Going from a consistent daily schedule to having the rug pulled out from under you can be unsettling and leave you feeling rudderless. The loss of structure and routine can make it difficult to know where to begin and can make it challenging to take charge of your time and career.
To help provide structure during this time, it is suggested to schedule daily tasks in your calendar. This can help to keep yourself accountable and stay on track. Take a few minutes to schedule blocks of time to make sure you can complete all the tasks within your own calendar.
It is important to remember that the job search process can be a long and difficult one, and it is important to take the time to process what has happened and to take care of yourself. It is essential to give yourself structured time to reflect and process and to have a tangible start date for when you'll take action. It is important to remember that you are not alone in this process, and there are resources available to help you navigate through this difficult time.
It may be tempting to start by refreshing your resume, but before doing so, it is recommended to take time to do some prep work. This can include researching different industries and roles that align with your goals, networking and reaching out to professionals in fields you are interested in, and creating a personalized job search plan. This prep work can help to provide a clear direction for your job search and increase your chances of finding a role that aligns with your goals and values.
In summary, the loss of structure and routine can be one of the most challenging aspects of being laid off. To help provide structure during this time, it is suggested to schedule daily tasks in your calendar. It is important to remember that the job search process can be a long and difficult one, and it is important to take the time to process what has happened and to take care of yourself. Instead of jumping straight into refreshing your resume, it is recommended to take time to do some prep work, which can help to provide a clear direction for your job search.
Step 6: Begin Your Job Search
There is no ideal time to begin your job search, and eventually, you will have to take the plunge and start the process. However, if you are seeking structure and routine to give your search a foundation, signing up for a free 10-day job search plan can be helpful. This plan provides daily action items to your inbox, and the workbook breaks down daily tasks and to-dos, giving guidance during a time that can often feel directionless.
Our recommendations for starting your search include:
It is important to remember that the job search process can be a long and challenging one, but by taking the time to set clear goals and create a personalized plan, you can increase your chances of finding a role that aligns with your goals and values. Signing up for a free 10-day job search plan can provide structure and routine to give your search a framework, and our recommended action items can guide you through the process.
Network, network, network
Search for (and save) job opportunities
Tailor your resume
When you find a job you’re ready to apply for, make sure to tailor your resume before applying. You may benefit from hiring an expert to do it for you (which only typically costs $200-$300).
Review the job description, identify the keywords that are used most frequently, and incorporate those words into the resume you’re customizing for that role.
Addressing a Layoff on Your Resume
Keeping your resume up to date is important, but should you include that you were laid off? You never want to lie, but you may be able to exclude a few minor details when updating your work experience. You do not need to provide an explanation for why your time in your previous role ended, and your resume should reflect your most relevant and impactful work compared to the job description.
Consider how you list dates on your resume. Avoid listing the months, as this might show more of a gap in employment, and instead only include the years you worked there. If your most recent job was the one you were laid off from, make sure to include the year you stopped working there, rather than writing "present". If you want to explain why you are not currently employed, you can note "mass corporate layoff" or something along those lines.
Addressing a layoff is never fun, so just make sure your resume is honest and a true reflection of your skills and achievements.
Get help with your applications
Creating a toolkit to help your peers if you were impacted by mass layoffs
If you were part of a mass layoff, you are not alone, and one of the best things to do is to band together to help one another through the aftermath. You’ve all just gone through something that no one else?truly?understands the nuances of. We can weigh in based on our experience navigating layoffs at other companies—but your company’s particular layoff experience is unique, and being surrounded by others who can relate can be one of the most helpful ways to power through.
What does that look like?
NOTE: Some companies will also coordinate a database of affected employees to help with outplacement services (example:?Peloton ), so it may be worth checking to see if your company created something similar.
Other Layoff toolkits & resources we'd recommend
If you need any help understanding your budget, equity, insurance or more; feel free to schedule an appointment with Progress Wealth Management. We're Denver's Top Fee Only Financial Advisor for Tech Employees and work with people all throughout the country, remotely.
??Financial Planning Thought Leader??
1 年Okay Blaine! Great, great article! Super thorough and filled with major gemstones of information! I cannot say how life changing getting active in LinkedIn is. Do it now, your future self will thank you!!