The Happily Employed’s Guide to Layoff Survival and Planning

I heard on the radio the other day that unemployment is at a 14 year high. I suspect that with the new administration’s plan for income redistribution and tax hikes for corporations we’re going to see unemployment get worse before it gets better.

But what if you’re in a seemingly cushy job? Or perhaps your company is still experiencing growth? Don’t be fooled to think that layoffs only happen to other people. If you’re currently employed, now is the time to put some layoff preventative action into motion and have a contingency plan should the layoff gremlins come knocking at your door.

I learned a very valuable lesson when I was laid off just before 9/11 in the midst of the dot-com burst. I was working as a software consultant for a small firm that had been around since the early 1980s. Looking back now, the warning signs were everywhere that the company wasn’t going to make it, but I was blind to it at the time. Just a couple of weeks after I got my walking papers the entire firm closed their doors. I was unemployed for four months until I landed another gig.

Those four months were dehumanizing. I started to believe that I had nothing to contribute to society and that’s why I was unable to find a job. I vowed to never be caught in that situation again. I created the following prevention and contingency plan that I maintain to this day. The idea is that if another layoff is in my future, I can move into action immediately, rather than sit dizzily on the floor wondering what happened and what I should do next.

Prevention

In my experience as an IT manager, there were two occasions when the director over me requested a list of the bottom 5% performers on my team. The company I worked for often threatened that they cut loose the bottom 5% of the company to remain lean and competitive. I’ve seen them do this only once, but the list was always available.

Not all companies work this way. Thank God. But if your company has to tighten its belt, you want to decrease the probability that you won’t make the bad list, and here’s how to do it:

• Know your boss. Some bosses are hands-on and in the trenches and others like to observe from their ivory towers. I’ve had both and both have their good points. What’s important is to get to know your boss on a personal level. This is easier to do with bosses in the trenches. For the ivory tower bosses, this is more challenging. Either way, put yourself in their shoes. Would you rather cut someone loose who is just another name on the team, or someone you know, have had lunch with, and perhaps have met their family?
• Setting expectations. While you’re getting to know your boss, find out how they measure success and what’s important to them. Here is a clue: Your boss wants to look good to his or her boss, and they achieve that through the success of the team they run. Find out what the hot projects are, or the key assignments and request involvement in those areas. While you’re at it, make sure your boss knows what skills you have that are unique to the team. Be an asset your boss isn’t willing to lose.
• Quantify and track results. Here is a scary thought: You get an email from your boss asking you to quantify your contributions to the team and the organization, and he needs it by the end of the day. It could happen; would you be prepared? Or what about your annual review? How do you prepare for that? Sounds like a lot of work, but it really isn’t. Keep a spreadsheet, and when you complete a project, assignment, or some other significant milestone, put all the critical information in the spreadsheet, like: date completed, duration, your role, problem you resolved, how you resolved it, what the quantifiable results are, who you worked with, and so on.

Contingency Planning

I typically do contingency planning on a quarterly basis, but if layoffs are alive and well in your company or industry, you should do this on a monthly basis. The idea is that should you be met with bad news about the longevity of your business relationship with your employer, you’ll be able to spring into action and get back on your feet.

• Calculate your critical expenses. Dave Ramsey calls these your four walls. They are the expenses you need to survive and nothing else: Food, Shelter, Clothing, and Transportation. What’s not on this list? Credit card payments, dining out, haircuts, gym memberships, you get the idea. You need to know this amount because you need to know how long your emergency fund will last, and if you don’t land a permanent job you need to know how much you need to bring in through part-time work in the meantime.
• Maintain your resume. You’re already tracking your work so you can wow your boss. Take that information and plug it into your resume monthly or quarterly to keep it fresh so you can send out your resume at the drop of a hat.
• Monitor channels. Permanent employment isn’t your only option. Depending on your line of work, you likely have several other channels of employment open to you, such as freelance work, temporary employment, and contract work.
• Join a professional organization. Yeah, they’re boring, but they might offer the networking opportunity you need to land your next job. Stay in contact with your profession’s organization, and if you can stomach it, get involved and make a name for yourself. Many professional organizations even offer job boards for members.
• Identify references. Keep a list of people you work well with along with their contact information. I don’t recommend telling them they’re on this list, it’s just a little creepy to say, “Hey, if I lose my job I’d like you to be my reference.” But know who you’d like to choose so that if you need to contact them you’ll be able to quickly.

What about you? Have you ever been laid off?  How did you survive? What would you have done differently, or how has it changed how you do things now?

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