Fearing a Layoff?
Hearing rumors about a pending layoff in your organization may be alarming news to you. If this is your situation, these 10 protective measures can help you protect yourself.
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Focus on bottom-line contributions
Employees who successfully drive sales or profits are normally the last to be targeted for layoffs. Now is the time to concentrate on activities that positively impact the bottom line: bringing in new customers, closing deals and cutting costs. -
Increase your visibility
Volunteer for important projects. Fix a critical problem. Contribute to a multi-department task force. Arrive at work early to increase the odds of being noticed by senior managers. -
Investigate job opportunities elsewhere within your company
Strange as it may seem, it’s not unusual for a company to initiate layoffs in one department while hiring in another. If you have skills that might be attractive to other divisions within your company, explore options for an internal transfer before pursuing outside employment. -
Secure your professional contact information
Create a backup copy of your work-related contact information and transfer it to your home computer. Knowing how to reach your contacts will be invaluable if you need to start looking for a job or references. While you’re at it, make copies of any non-proprietary work samples and performance reviews for your home files. -
Investigate the company’s severance policy
Don’t be caught unprepared. If the company has a printed severance policy, read it. If not, ask around (cautiously) to learn how the company has allocated severance to other employees. -
Assemble your job search toolkit
In addition to updating your resume, you should reach out to executive recruiters, activate your network of professional contacts and build-up your profile on sites like LinkedIn and Facebook. -
Cut your expenses
Hold off on big purchases and look for ways to reduce spending. Aim to quickly build a financial reserve fund of at least six months of expenses. -
Secure a home equity line of credit (HELOC)
If you are concerned about having enough cash on hand to get you through the next several months, consider applying for a home equity line of credit. It will be much easier to be approved for the loan while you’re employed, and you’ll only need to pay interest on the line if you actually use it.
2009 Update: In the current financial downturn, it may be difficult to obtain a HELOC or your existing, unused HELOC may be closed down by the lender. It is better to have an emergency fund of cash available but it doesn't hurt to also shop for a HELOC. -
Pay off credit card debt
Get rid of your existing credit card balance. If it is not possible to completely pay off your balance, investigate ways to consolidate your credit debts on a card with a lower interest rate.
2009 Update: Many credit card issuers have recently reduced credit limits as soon as cardholders pay down balances, leaving very little credit available for use in an emergency. In light of this, you may wish to reduce your debt payments to the minimum payments due and save your cash if you do not already have an emergency fund to get you through a layoff. -
Front-load your medical benefits
Because you might elect to eliminate dental and vision insurance after you lose your job, take advantage of those benefits while you have them. If you participate in a Section 125 healthcare flexible spending account (FSA), use up your annual allotment before you leave. You are entitled to reimbursement for all eligible expenses incurred through your date of termination, even if you have not yet fully funded your account. For example, if your elected annual FSA contribution is $1200, but as of your termination date you have only contributed $600, your employer must reimburse up to $1200 of qualified expenses (even though you only funded half that amount by your termination date).
