5 Tips To Prepare For A Layoff In Advance
2009 February 3
Today was my first day at a new job. While my period of unemployment lasted only three months, it seems much longer than that. Time doesn’t fly when you’re sitting at home. In retrospect, there are several things I would have done before the lay-off that would have helped tremendously. I suggest you learn from my experience and implement the following suggestions.
- Beef Up Your Emergency Fund – Many experts recommend you keep 3-6 months worth of expenses in a safe, liquid account. After this ordeal, I actually think that’s far too little. In this economy, counting on finding a job within thee months is a risky gamble. I suggest 6-12 months. I’m shooting for 12, personally.
- Cut Unnecessary Expenses In Advance - If your emergency fund isn’t enough to cover at least 6-12 months worth of expenses, it would be wise to cut back ahead of time. Few people actually need cable and unlimited data on their cell phone plans. Aim to save at least 20% of your gross income until you’ve built your emergency fund to a reasonable level. “But Kyle, I’m living paycheck to paycheck and can’t afford to save!” Wrong. Everybody wastes something. Figure out what you waste your money on and fix it. If you truly can’t find any spare cash to save, you could always hold a yard-sale to raise cash.
- Tap Into Your Network While You Still Have An Income - Don’t wait until you’re in the unemployment line to network. In the end, your professional contacts are by far your best bet to finding new job opportunities. If you wait until the last minute to cultivate these relationships, many of those people will feel as though you only bother contacting them when you need something. Needless to say, they would be much more willing to help you out if they viewed you as a friend in need rather than a desperate opportunist.
- Keep Your Skills Fresh – This applies both to learning new skills and keeping up with old ones. Few jobs will utilize everything on your resume. It’s important to brush up on rarely-used skills every once in a while just in case.
- Make Your Superiors Look Good – If you make your superiors look good, they’ll be much less willing to give you the axe because it would mean a jolt to their own career as well. People are selfish and prideful: take advantage of it.
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Regarding the emergency fund – did you get any severance pay from your old job?
I’m thinking that if you know you are getting a good severance then that would reduce the need for a larger EF.
Yes I got a severance, but I don’t think it’s wise to count on it. And mine wasn’t very big.
I would say having a secondary or multiple income streams because I don`t think you want to bet everything you have on that job.
Plus I would imagine, at least for me that I do not plan on staying at that job for the rest of my life, so you should be planning to make changes such as secondary income or something.
Nice ad for Monster at the end of the post.
I agree with you that 12 months of living expenses is the norm. If you can afford to downsize, that would add some extra flexibility to your situation.
Some sage advice here. I espically lke the 12 months of EF and keeping your network strong while you have a job.
The other thing I would add is to try and pay off any credit or high interest debt asap.
All good advice, I’m doing all of the above as I prepare for the layoff (and am actively job hunting). I would include: References; make sure you know who you can ask to serve as a reference or a resource and that you have their contact information before you leave. Nothing like wishing you could access your old contacts lists.
Glad to hear you’re in a new job! Is it in the same industry, or have you had to switch career paths?
Lise, same industry although the commute is a bit longer than is ideal.
Andy, that is good advice. I don’t know why I didn’t think of it.
I think tip 3 is the most important. It’s far easier to get a job while you’ve still got one. If you do find yourself laid off, consider going on holiday for month and claim you were taking a career break – even if you just go to your family’s home for a short while. People like to hire people they think others want.