8 Tips to Deal With a Job Loss
It’s a chilling reality. The fact that those we know, love and work with are losing their jobs as companies adjust to the current economic climate. To illustrate this point, I've posted a snippet of an email I received from a co-worker a couple of days ago:
“Torrey, my current position is being eliminated and I will no longer be with the company. Can you help me with job search sites and networking opportunities? I really appreciate any help you can provide."
Take a moment and put yourself in this person's shoes. One day, your life is great. The next, you're getting called to the HR department and they are telling you how the company is restructuring. And this begins your job search. This can happen to any of us at any time. Whether you are the sole earner or in a two income household, a job loss can cause a lot of stress.
But regardless of our current situation, there are things we can begin doing now that will help lessen the blow of a job loss and get us prepared just in case it happens to us. Some of those include:
1. Build an Emergency Fund – We have a tendency to think that the bad things like layoffs happen to others while we remain “safe”. According to a recent MetLife survey of 2,243 Americans, 50% had less than one month of expenses saved. 28% indicated they had less than two weeks of expenses saved. If you fall under those categories of savers, be warned. The average time of unemployment is 22 weeks. So chances are you're going to run out of money before you have another job.
If you listen to personal finance “experts” you’ll hear advice on saving anywhere from three months to one year of expenses. For me, I lean toward six months of savings because that's what makes me feel comfortable. But regardless of what you choose, be sure that you are comfortable with that amount and it is realistic.
2. Learn to Live on Less Than You Make Now -Take the time and effort to carefully review your household spending. You may find things that you can reduce and/or eliminate immediately. While having steady income, we may not go through our spending with a fine toothed comb because we are living comfortably. But by living on less than you make now, you can reduce the strain of your household spending and add more money to build that emergency fund we discussed in point #1.
3. Maximize Your Contacts Today – When it comes to getting the most out of your contacts, there's no time like the present. A mistake many people make is waiting until they are in need of something to communicate with their networks. Squash that approach and instead, keep relationships with your contacts ongoing. Social media has really helped make this very simple. With sites such as Facebook, LinkedIn and Twitter, you can find it easier to keep your contacts current. By doing this, you improve your chances of being top-of-mind, when and if you ever need employment.
I would also encourage you to recognize co-workers who have assisted you in team projects and tasks. Your company probably has an internal recognition program that you can access. No matter if an established program does or does not exist, sending them a thank you card with a written note included will go a long way in winning this person over when a need of yours arises.
4. Sharpen Your Skills - Most of us get hired for positions because our skill set matches what the hiring company is in demand for at that time. But it will be helpful to continue to develop those skills while at your current job. Take advantage of tuition reimbursement programs, industry association memberships and internal training programs. Using these types of avenues can not only help you at your current job but will also be transferable and make you a more attractive job candidate if you are asked to leave.
Some companies also provide free training for employees such as learning popular office suite software, a foreign language and audio/visual equipment training. Most of the time, all you have to do is inquire and sign up.
5. Don’t Burn Those Bridges – It is a natural reaction to leave one job and either never think twice about those you've worked with, or just simply leave on bad terms. Instead of those approaches, be sure to leave each job on good terms and keep in touch with them. If your desire is to work in the same industry, you probably will come in contact with these folks down the line. You'd hate to have an awkward reunion.
6. Develop a Side Hustle - We've all heard the saying "don't put all you eggs in one basket." Well by developing a secondary way to earn money, your avoiding that. We all have skills that we can earn money off of. If you don't have a second means to make money, take some time to brainstorm ideas and create a list. You'll be amazed at how many ideas you will generate. From tutoring, to handyman work, to writing, it really can add up fast.
7. Keep An Updated Resume/Portfolio of Work - There's not a lot of things worse than having someone ask for your resume and you don't have an updated copy ready. Instead of waiting until you are actually in the job market, keep your resume and samples of previous work (if applicable) updated and ready to be distributed, when requested.
Even if you ask a potential lead if they are aware of any opportunities and they do not know of one, they may take your resume and pass it along when something comes up. And you may get a call from a nice HR Manager stating, "Mr. ABC, your resume just came across my desk and I'd like to bring you in for an interview."
8. Stay Updated on Company News – Not only is it a good idea to understand what's going on at your company, it can help give you clues on the health of your company. Be sure to read all the employee newsletters, company financial earnings, newspaper articles about your company and its industry. Keeping yourself educated on what's going on can give you a leg up on what is cause for alarm or just rumors.
Also, many companies will have town halls or employee forums that company leadership use to address the company's state. Be sure to pay attention during these and ask questions when you do not understand statements. Don't be nervous because most times, other employees are thinking the same thing you are.
Why is this important?
The key in each of these steps is making proactive moves to ensure a plan is in place prior to a crisis. You don't place fire extinguishers in the house while the fire is blazing. That's something that is necessary before the fire. Taking the same approach by preparing before a possible layoff can serve to be very useful and lessen the strain on you and your family.
What are your thoughts about preparing for a layoff? Have you recently experienced a layoff? Feel free to add your comments below.
This is my first visit to your site and I must say that I appreciate the depth of advice given during this never before seen environment. I, too, have been writing about what men can do and the impact of job loss on the family.
http://thenormalmale.wordpress.com/2010/01/11/hes-killing-our-marriage-part-1/
I think the combination of practical suggestions along with the emotional components will help men and their families get back on track. Thank you for your post.
Dr. Rod
drrod@thenormalmale.com
http://thenormalmale.wordpress.com
Thanks Dr. Rod. It is extemely important to utilize all possible resources in a time like this to maximize opportunities.