Layoffs seem like a regular occurrence recently and it is something that you should be prepared for at all times. John F. Kennedy said it so eloquently, “The time to repair the roof is when the sun is shining.”.
Facing the reality that your employer may be downsizing or needing to perform layoffs can be stressful. Whether you are facing this possibility or simply preparing for its potential in the future you want to be prepared as well as you possibly can. Learning that you are going to be laid off, or could be, can be extremely draining mentally. Having your affairs in order ahead of time and ready could help alleviate some of the stress.
There are certain things you should have in place at all times, from a planning standpoint, in preparation for a layoff. Having your resume up to date and an emergency fund in place is helpful whether a layoff is imminent or in the future. Updating your resume and refining it over time will leave you prepared in case something should happen with your current employer and you need to begin looking, whether a change is initiated by you or your employer. An emergency fund is a tool that will provide immediate access to funds if an unexpectedly large expense comes up or even when faced with the loss of your job.
Growing, maintaining and deepening relationships with your professional and personal network is always a good idea. I have written many times about how your Network equals your Networth and nurturing these relationships could mean the difference between having a long or short-term employment search. There is research that supports up to 70% of all jobs are not published publicly and anywhere between 50% and 80% of all jobs are filled through networking.
In addition to being prepared, you will also want to make sure you read any separation agreements that may be provided to you for signature upon your departure. This may include severance and other terms of your separation as well. It is important to understand what you are signing and what you may be giving up as a result of signing the documents provided and taking the compensation offered. We would recommend that you take the time to have a competent employment attorney review the documents, severance agreement, and other documents, before signing and submitting them. This is something that may lend itself to some level of negotiation between you and your employer.
Health insurance could be an important factor in your departure and you will want to know how long your coverage will last, who is responsible for the payment, and if this will be provided to you and your family through COBRA or some other arrangement. Many families will find this could be a large expense, much larger than what they were used to when they were employed, and you will need to plan accordingly.
We would be happy to schedule a time to discuss how we can help you and your family understand how you should be better prepared for corporate downsizing or the potential for your future separation from your employer. Feel free to schedule a 30 Minute Zoom Meeting for us to discuss what may be right for you.
This article represents the opinion of Mitlin Financial Inc. It should not be construed as providing investment, legal and/or tax advice. Investing involves risk, including possible loss of principal. No strategy assures success or protects against loss. To determine what may be appropriate for you, consult your financial advisor.