Moving Forward After a Layoff: Your Step-by-Step Guide to Bouncing Back

If you’ve recently experienced a layoff, there are several steps you can take to regain stability quickly and prepare for your new job search.

But first things first—let yourself breathe. You're probably feeling a mix of emotions right now, from anger at your employer to fear about your future. Take some time to gather emotional support from your inner circle to help process the layoff. Your mental and emotional well-being is crucial!?

“Getting laid off can feel devastatingly personal and hard on your mental health. Along with multiple hits from loss of income, status, daily structure, social support, self-esteem, and identity, there’s also the inherent uncertainty that often comes with mapping out your next career move. “

Harvard Business Review

From day one, remind yourself that layoffs aren’t personal. They didn’t happen because you failed. Layoffs are usually financial moves by your company. Remember, there is nothing wrong with you. You are just as valuable today as you were before your layoff.

Once you’re ready, consider some practical steps you can take to navigate this challenging time and come out stronger on the other side.

Assess Your Financial Situation

After their layoff, money is usually the last thing a person wants to think about. But understanding your financial situation is important for handling the transition period following a layoff. The first step is to look closely at your finances. This means checking all your income sources, savings, and investments. Know how much money you have and what your expenses are.

Understand your available funds and financial commitments.?

Check your bank statements, loan balances, and other financial documents to get a clear picture of your finances. This review will help you identify your financial strengths and spot areas that need immediate attention. It will also provide a solid foundation for your next steps in financial planning.

Once you understand your financial situation, it's important to know which expenses are necessary and which are not. Necessary expenses are things like rent or mortgage payments, utilities, groceries, and insurance. Unnecessary expenses are things you can live without or cut back on, like eating out, subscriptions, and entertainment.

By identifying these categories, you can cut back on non-essential expenses. This ensures that you direct your available funds toward necessities and extend your financial runway during the transition period.

Speaking to Amanda Cordoso of The Muse, Amy Corosa warns that, “it can be tempting to dip into your retirement accounts for some extra cash, but using that money after a layoff isn’t financially wise. ‘There are taxes and fees associated with withdrawing from a Roth IRA or 401(k), so you’ll lose money by doing this,’ Coroso says. ‘You may also postpone your retirement date if you are unable to reimburse your account’.”

Create a budget

Creating a budget that fits your new financial situation is crucial for managing money during a layoff. Start by listing your income and necessary expenses, focusing on essentials first. Set realistic limits for non-essential spending and find areas where you can save. Your budget should be flexible enough to adapt to changes but detailed enough to keep you accountable. Regularly review and adjust your budget to stay on track and maintain control over your finances during this transition.

Update Your Resume and LinkedIn Profile

Regularly updating your resume is very important, especially if you have been laid off. Keeping your resume current helps you make a strong impression on potential employers. It also boosts your confidence as you search for new jobs.

Start by adding any recent roles, focusing on new skills and accomplishments that you have gained. Highlight specific achievements with significant results, such as projects completed, targets met, or awards received. This not only refreshes your resume but also makes it more competitive in the job market.?

Tailoring your resume to show your latest professional growth can significantly boost your chances of landing new opportunities. With the market at its worst, going the extra step of customizing each resume to each employer can make a difference.

Ensure your LinkedIn profile reflects these updates, including a recent professional photo and a compelling summary. Your LinkedIn profile is often the first impression you make on potential employers, so it’s vital to keep it updated. Stand out with a custom background image that works as a billboard to display your valuable assets.

Show the changes made to your resume by adding recent roles, skills, and accomplishments to your profile. Ensure your profile photo is professional and current. Craft a compelling summary that highlights your career achievements, professional strengths, and ambitions. A complete and polished LinkedIn profile can increase your visibility and attractiveness to recruiters and hiring managers.

Garner support

Seek recommendations from colleagues or supervisors to enhance your profile’s credibility. Recommendations on LinkedIn provide social proof of your skills and work ethic, adding considerable credibility to your profile.?

Reach out to former colleagues, supervisors, or clients who can vouch for your professional abilities and accomplishments. Personalized, specific recommendations (on LinkedIn or in letters) that highlight your strengths and contributions can make a powerful impact. These endorsements can set you apart from other candidates and provide potential employers with trustworthy insights into your professional capabilities.

Collect your dues: Severance and unemployment benefits*

When facing a layoff, it’s crucial to secure a satisfactory severance offer before leaving. Depending on the type of severance you receive, you may also still be eligible to collect unemployment benefits due to you.

*(Disclaimer: I am not a legal or finance professional, nor is this article to be considered legal or financial advice.)

“Severance is often paid as a lump sum, though it can be paid out in installments as well. With a lump sum payment, you may be entitled to unemployment benefits after you've received that money,” writes Maurie Backman, for The Motley Fool. “Severance that's paid in installments, however, could compromise your ability to collect those benefits since you're still receiving a steady stream of income. But again, the laws vary by state, and in some parts of the country, severance is not considered earned wages for unemployment purposes, which means it won't stop you from collecting benefits.”

Always, always negotiate

Salary negotiation expert and career transition coach Keri-Lynne Shaw, founder of The Salary Bump, emphasizes the importance of asking specific questions to understand how your severance amount was determined.?

“Asking questions like, how did you come up with my severance amount? Exactly how was this amount calculated? Is it standard? Can provide valuable insight.” After posing these questions, it's important to pause and allow your employer to respond, advises Shaw.?

Once you have their answers, it’s time to negotiate. Although negotiation can feel intimidating, employers generally expect it. In fact, you should consider asking for double what is initially offered. Whether you’re one of a few people getting laid off, or part of a mass layoff, you have negotiating power.

Additionally, Shaw suggests that you don’t just discuss money during negotiations. Be sure to include aspects like healthcare, sales commissions, any upcoming bonuses, and outside support such as job coaching and other job-related services. With the market being unusually tough, it’s in employers’ best interests to offer everything they can to help their terminated employees get back on their feet at another company.

Navigating the unemployment application process

Check your eligibility for unemployment benefits in your state or country. When facing a layoff, it’s important to verify your eligibility for unemployment benefits promptly. Each state or country has specific criteria and regulations for receiving these benefits. Visit your local unemployment office’s website or contact them right away to understand the requirements.?

Eligibility often depends on factors such as your work history, the reason for your job loss, severance package, and your availability for future employment. Ensuring you meet these criteria can help you secure financial support while you search for a new job.

Once you’ve determined your eligibility, promptly gather the necessary documents to submit your unemployment benefits application. This typically includes your social security number, details of your previous employment, such as employer names and addresses, dates of employment, and the reason for job separation.?

Submit your application right away to ensure you receive benefits as soon as possible, providing you with a steady income to support yourself during your job search. Delays in submission can cause postponed or missed payments, adding financial stress during an already challenging time.

Documentation and entitlements

US employees who are laid off should request certain documents from their employer, as they are legally entitled to them. Here is a checklist of documentation and entitlements you should receive from your employer upon layoff:

Notice of layoff:

• Under the Worker Adjustment and Retraining Notification (WARN) Act, if your employer has 100 or more employees, they must provide 60 days’ notice of mass layoffs or plant closings. This may not apply to smaller layoffs or companies.

Severance agreement (if applicable):

• If the company offers severance pay, request the severance agreement which outlines the terms, amount, and conditions.

Separation agreement: (if applicable)

• If you receive a separation or severance agreement, the Older Workers Benefit Protection Act (OWBPA) requires that you receive at least 21 days to consider the agreement if you are over 40, and seven days to revoke it after signing.

Final paycheck:

• According to the Fair Labor Standards Act (FLSA), you are entitled to your last paycheck, which should include all earned wages, overtime, and accumulated but unused vacation time, depending on state laws. State laws vary on the timing of the last paycheck. Some states require immediate payment upon termination, while others have specific timelines.

Unemployment information:

• You may apply for unemployment benefits. Eligibility and benefit amounts are determined by state laws. Your employer should provide information on how to apply.

Benefits information:

• Details about the continuation of benefits, such as health insurance through COBRA (Consolidated Omnibus Budget Reconciliation Act). Under federal law, if you worked for a company with 20 or more employees, you may continue your health insurance coverage for up to 18 months through COBRA. The employer must provide you with a notice explaining your rights.

Retirement plan information:

• Information on what happens to your 401(k) or other retirement plans, and how to roll over any funds if needed. You have the right to receive information about your retirement plan and any vested benefits.

Outplacement services (if offered):

• Some companies provide outplacement services to assist with job search, resume writing, and career counseling.

Reference letter:

• A letter of recommendation or reference from your supervisor or employer, if possible.

These documents and entitlements can help ensure a smoother transition during a challenging time. Always consult with a legal professional for advice specific to your situation.

Stay informed and follow up

After submitting your unemployment benefits application, it’s crucial to stay informed about the process and any additional requirements. Monitor the status of your application and be ready to provide further documentation if requested. Keep track of any deadlines for submitting weekly or biweekly claims to maintain your benefits.?

If there are any delays or issues with your benefits, follow up with your unemployment office quickly to resolve them. Staying proactive and involved in the process helps ensure you receive your benefits without unnecessary interruptions.

Network

You’ve heard it before, but it’s worth repeating: Networking can open doors to new opportunities and provide valuable insights. This means it’s time to fully leverage your network.

Reach out

Connecting with your professional network is a key step after a layoff. Reach out to former colleagues, supervisors, and industry contacts to inform them of your situation and express your interest in new opportunities.?

Personalize your messages to explain your current status and specify the roles you are seeking. This not only helps spread the word about your availability but also taps into the hidden job market, where many opportunities are shared through word-of-mouth and personal referrals. Your network can provide leads, advice, and support during your job search.

When sharing your availability, resist the urge to make negative comments on social media about your layoff or previous employer, regardless of your feelings. Says HRNasty.com,

“Resist making emotional changes to your LinkedIn profile... Think twice before you post anything like the following:

• Acme Publishing laid me off today after 7 years of loyal service…’
• ‘I dedicated 5 years of service and was laid off without warning today. Please keep me in mind if you are hiring…’
• ‘I just want to say “goodbye” to my co-workers and friends. After working at Acme Publishing for 15 years and sacrificing so much. . . ‘

Posting about your tenure, accomplishments, and dedication to a company sounds like bitterness. Companies don’t want to hire bitter. Companies want to hire positive attitudes that are looking forward and can get through adversity. Social media is not the place to vent. You have absolutely every right to be bitter. Your next manager doesn’t need or want to hear it.”

Join industry groups or events

Networking groups on platforms like LinkedIn are valuable resources, both before and after a layoff, for connecting with professionals in your field. Joining these groups allows you to engage in discussions, stay updated on industry trends, and discover job openings.?

Attending virtual or in-person industry events provides opportunities to meet potential employers and expand your professional connections. These interactions can offer valuable insights, job referrals, and new opportunities that might not be advertised elsewhere. Active participation in these groups and events during your layoff shows your commitment to professional development and keeps you visible in the job market.

Consider informational interviews

Informational interviews are a strategic way to gain insights into potential job openings and receive advice from professionals in your industry. Reach out to individuals whose careers you admire and request a brief meeting to discuss their experiences and insights. These conversations can provide valuable information about company cultures, industry trends, and specific job roles.?

Additionally, informational interviews after a layoff can help you build relationships with key industry players who might consider you for future opportunities. Approach these meetings with genuine curiosity and a willingness to learn, and they can become a cornerstone of your job search strategy.?

Learn and upskill or reskill

Enhancing your skills right after a layoff can make you more competitive in the job market. Consider taking online courses, earning certifications, or learning new software relevant to your industry. This not only improves your resume but also shows potential employers that you are proactive and dedicated to your professional growth.?

Identify in-demand skills or knowledge

To stay competitive in the job market following a layoff, it’s essential to identify the skills and areas of knowledge that are in high demand within your industry. Start by researching job postings, industry reports, and professional forums to determine which skills employers are seeking.?

Pay attention to both technical skills, like competence in specific software or tools, and soft skills, such as leadership and communication. Understanding these trends helps you focus your learning efforts on the most valuable areas, making you a more attractive candidate to potential employers.

Enroll in online courses?

Once you’ve identified the in-demand skills in your industry, take proactive steps to gain them. Platforms like Coursera, edX, and LinkedIn Learning offer a wide range of courses tailored to various industries and skill levels. These educational opportunities not only help you gain new knowledge but also show your commitment to professional development, making you stand out to prospective employers.

Free or low-cost resources

To make learning more accessible and cost-effective, explore free or low-cost resources available online. Websites like Coursera, edX, and LinkedIn Learning provide many courses and certifications, often at no or minimal cost, which you can display on your LinkedIn profile for recruiters to see. These platforms offer high-quality content created by top universities and industry experts, covering an array of subjects.?

Using these resources allows you to expand your expertise, stay current with industry trends, and improve your employability without significant financial investment. This continuous learning approach ensures you remain adaptable and competitive in a rapidly evolving job market.

Explore new options

After taking care of your finances and documentation, consider exploring new opportunities. When you’re not following up on resumes and interviews or learning new skills, try looking into earning money through a side hustle. Not only will it offer emotional and financial relief, but it may also lead you in a completely new direction in your career.

According to Susan Peppercorn, “Starting a side hustle is a great way to see what you can do on your own, and it offers a perfect testing ground to try out a new career path or convert talents and hobbies into cash makers.?

“If you have time on your hands due to a layoff, this may be the ideal moment to leverage a side hustle to supplement your job search. Some side hustles have the added benefit of generating just as much income as a full-time job — or more.”

Without question, a layoff is one of the most stressful life events you can endure. But it’s essential that you do your best to move forward as rapidly and systematically as possible. This not only improves your chances of finding a job sooner, but it decreases risks associated with unemployment. In a study by Karsten I. Paul and Klaus Moser:

“[D]istress among unemployed people is the consequence of a lack of five latent functions of employment (time structure, social contact, collective purpose, status, and activity), which correspond to important psychological needs. Only employment can provide these latent functions in a sufficient amount in modern societies, while unemployment leads to a state of deprivation, resulting in distress.” (Emphasis mine.)

Conclusion

Navigating a layoff is downright tough, but by following these steps, you can create a structured plan to move forward with confidence. Take the time to assess your financial situation, update your professional documents, apply for unemployment benefits, network, and enhance your skills. Remember, you’ve got this!

Ready to move forward and take the next step? Start by updating your resume and LinkedIn profile today. Join an online course to upskill and stay competitive. Reach out to your network and explore new opportunities. You have the power to shape your future!