Are you preparing for layoff? Here’s how to know:
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Considering that the U.S. labor market is in pretty good shape, you might think that layoffs aren’t much of a worry these days. However, according to a recent Monster report, 26% of respondents said their company was directly affected by layoffs in the past year. This isn’t exactly a small percentage.
Getting fired can be not only a financial blow, but an emotional blow as well. And although we may not be able to prepare the electrons accurately, ~can do Take steps to prepare for the latter. If you’re not sure whether you’re ready to endure a layoff, ask yourself these key questions:
1. Can my savings cover 3 months of essential expenses?
You may have some money in your savings account to cover emergency expenses or periods of unemployment. But do you have enough cash reserves to cover three months’ worth of essential expenses? If not, you may want to make it a priority to grow your emergency fund now while you’re still employed.
The reason having three months’ worth of savings is important is because for many skilled roles, it takes time to get through the bureaucratic process of submitting an application, going through a series of interviews and receiving a job offer. So you want to make sure you can pay your bills and avoid debt during that time.
Now you may be thinking, ‘So if I get fired, wouldn’t I receive severance pay and unemployment benefits?’ The answer depends.
Depending on the company’s policy, industry, and length of service, you may not receive severance pay. And even if you qualify for unemployment benefits, they may only replace a portion of your missing benefits. So it’s really important to aim to save enough to cover three months’ worth of bills.
2. Is my technology up to date?
Perhaps you’ve been working hard at your job, but you know that building on certain skills would benefit you. Or maybe you used certain skills in the past, but those skills were exhausted as certain daily tasks took on a different direction.
Think about the core requirements of your role and ensure that your skills are such that you can perform well in a different work environment. If not, prioritize the skills you need to build or refine, then work to get them up to speed.
3. Are my online profile and resume up to date?
If you’re laid off, you may want to jump right into the job application process for the sake of your personal finances and mental health. And you might be able to by updating your resume and online profile now.
Go through your current resume, remove tasks and experiences that no longer apply or are irrelevant, and update that document to reflect your most recent work. Highlight any awards you have won or new skills you have developed.
Likewise, you may have a profile on LinkedIn or industry-specific sites. Make sure your profile is updated so you can start your job search right away if needed. Also, if you want to ask people for recommendations, do it now. If you wait, you may receive certain contacts during busy times, which may delay the process.
Being laid off is not an easy thing to deal with, financially or otherwise. However, preparing with these steps can make the process much easier.
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