How to prepare for a layoff

[sweeps]

Looks like unemployment numbers are going up again because of the fallout from Katrina. Makes me think twice about my own job security. Several friends of mine have been laid off in the last couple years and here are some tips I've picked up from their experience and my observations:

BEFORE:

1. If you don't have an emergency fund that can cover at least 6 months of expenses, start saving immediately. The last thing you need when losing a job is to rely on credit cards or other expensive debt. Plus, a solid emergency fund will help you be more selective in your job search. You don't want to be in a position where you must take the first available job.

2. Find ways to improve your marketability while you're still working. Take classes (particularly if your boss will pay for them), read, network with friends and associates, attend trade group meetings, volunteer at a place you can practice your skills.

3. Polish up your resume! You never know when you'll need it. Fill in gaps as necessary. If certifications are available for your field, consider attaining one or two to help improve your stature.

4. Practice your interviewing skills. Have a friend interview you. You may even want to apply for some jobs just for the interviewing experience.

5. Come up with a plan to reduce your expenses, perhaps dramatically, when the time comes. If push comes to shove, which luxuries can you do without until the income starts coming back in?

AFTER:

1. If possible, negotiate your severence package. Many employers will treat you fairly and want to avoid negative publicity. But sometimes being assertive is necessary to secure a better package. If more money is not an option, what about an extension of health benefits, or training reimbursement? Be creative.

2. File for unemployment benefits immediately. You will not receive any benefits until your application is in the system. Even then, it often takes 2-4 weeks before you will see any money.

3. Implement your plan to reduce expenses. Be prepared for the fact that you may be out of work for several months.

4. Invest as much time as possible into looking for your next job. Don't rely only on the Internet and newspaper as your sources. This is the time to call in favors from your friends and colleagues and ask if they know of any leads. Avoid the temptation to just live off your severence and/or unemployment checks and delay your search. The longer it takes to find your next job, the more frustrated and dejected you can become.


I hope this was helpful. Additional tips and comments are welcome...

[Russell]

Those are some great thoughts and ideas. Thank you.

[Bluezy]

I agree! These are sound suggestions. Thank you for sharing them

[Tree0164]

Great advice! All important tips but I think the emgerency fund is the important one.