How to Navigate Layoffs
Posted December 12, 2022
Many people are adjusting to the rising inflation and job market fluctuations. Just as many people are navigating the economy, businesses are no different. Countless businesses in the past several months have laid off many workers. Most notably, large companies such as Peloton, Oracle, Gap, Amazon, Twitter, and Meta to name a few. The phrase, “The Great Resignation” was coined during the pandemic. Many workers quit at record rates, and the job market favored employees. Now, things have shifted once again. Layoffs and hiring freezes are the reality across many businesses from the technology industry to large retailers. Business growth is slowing, and labor costs are rising. This isn’t great news.
Though we can’t control or even accurately predict the direction of the economy, we can learn how to navigate layoffs by having a plan in place before it happens. Here are some tips for navigating layoffs before they occur and during.
#1 create an emergency fund
Creating an emergency fund is a great idea for anyone. No matter if you’re single, married, or have 6 kids, this safeguard is helpful for your financial freedom and your peace of mind. Generally, I think that having 3-6 months of savings built up is a great idea. The four areas to pay the most attention to when building this is housing, utilities, transportation, and food. This adds up to a decent chunk of money, and it will likely take a while to save this much money. However, slowly adding money to this fund is one of the best ways to take care of yourself and your family in case you lose your job.
#2 utilize your network
Networking platforms like LinkedIn are great for this. Before you ever need a job or connection, make sure to stay up to date on relationships with people in similar or adjacent fields of work. Keeping connected over the years will help you to call on people if or when you need support. A great place to start is your immediate circle since they can help get you connected and talk you up.
#3 figure out what benefits you have
Some employers will pay a severance to their employees who have been laid off. This isn’t required, so not everyone laid off receives severance. If you do receive severance, you may be able to ask for it in one check or spaced out over a couple of months. Another benefit to investigate is healthcare. Sometimes, you can stay on your company’s insurance for a while (even if they don’t pay their previous side of the premium) and sometimes it’s best to get a high deductible plan, or government health care. Whichever option you choose, make sure your family is covered. Lastly, file for unemployment benefits while looking for your next opportunity.
#4 tighten your budget
Changing your income due to being laid off requires a change in spending. Hopefully, you have some sort of severance or an emergency fund. Even if you don’t, sit down and create a zero-based budget. This means that you figure out what money you have coming in that month and figure out what your expenses are, and make it equal to zero. If you have “leftover” money, this might go to an emergency fund, retirement account, paying off your house, or prepaying something next month so that you won’t be in a pinch later. Of course, nonessential items will likely be cut this month such as gym memberships and going to the movies.
#5 explore jobs in high demand
Some fields of work are always in need of more employees. If you can’t get a job in your field for some reason, you may want to explore other options. For example, the medical field and education are always in need of more people. Of course, you may not be a doctor, nurse, or teacher, but many positions are supporting roles and may not even require a degree, or a degree in that field. This won’t last forever, the economy is bound to recover. Make a plan early, and do what it takes to make ends meet.
