Blue Ridge CPCU Chapter - Job Loss article ©
Provided by: The Leadership Development Institute, Roanoke VA - Rev. Barry Shaffer - © Copyright
Preparing for the Pink Slip
Whatever employers like to
call it, being laid off, downsized, restructured, rightsized...the result is the
same—you're out of a job. And regardless of why, being laid off from a job can
be a traumatic, stressful experience, one that can cause you to lose sight of
your own value as a worker and provider for your family, and even your career
direction. The bad news is that it will
probably happen to most of us during our careers. The good news is that with
a little preparation and smart thinking you can lessen its blow and make the
transition to the next chapter in your work life.
Here are a few tips to help you
handle a lay off.
1) DON'T TAKE IT PERSONALLY Being laid off is not about your or your
contribution to your company. It's about your company's need to reduce expenses.
It's not your failure; it's about your company's INABILITY to raise enough money
to support its workers. Often, very talented people are laid off.
2) RECOGNIZE THE GRIEF PROCESS.
Psychologists agree, there is a fairly complex process that people go
through after being laid off. The process typically involves five steps in this
order:
DENIAL
ANGER
SADNESS
OR DEPRESSION
BARGAINING
ACCEPTANCE
Recognize these steps, accept them
and work hard at getting yourself to the last step as quickly as possible.
3) ACT SMART Don't panic! Don't say or
do anything that you might regret later on. If there ever was a time to act PROFESSIONALLY this is it!
a) INFORM your employer that this is very
unsettling news and that you need a few days to think before you can proceed to
discuss this matter.
b) GUARD your tongue.
c) GET it in writing.
d) PUT it in writing.
e) PAUSE before signing - such as a
non-compete or non-disparagement agreement. This could negate your right to sue.
f) Do
not agree to DISCUSS anything at
this time. Give yourself a few days to think so that you may properly respond to
the situation.
g) Remember: Loose
tongue, lose benefits
4) DON'T THREATEN REVENGE. Revenge won’t REVERSE. Don't think you can stop or reverse being
laid off, or punish your employer by threatening revenge. In most cases, terms
of severance are negotiated exclusively by your employer and you. If you anger
your employer with threats, especially groundless threats, you'll only force him
or her to dig their heels in deeper and they will be less willing to comply with
your requests.
5.CONTACT A LAWYER
If you believe you have been laid off illegally, immediately contact a lawyer
who has experience in employment law. Don't try to go after your employer
without counsel. Here are a few situations that could be considered illegal
grounds for your dismissal. You were laid off...
· Because
your employer wanted to save accrued benefits
· Because
you took time off for a legitimate illness or absence
· For
serving on jury duty
· For
joining a union
· for
legal off-premise conduct
· For
bringing forth health or safety violations at your work s
· For
military duty
· Because
you asked for or took a maternity leave
· Because
someone objected to your age, sex, race, religion or nationality
· For
refusing a sexual advancement from a co-worker or superior
· For
filing a sexual harassment claim at work
· For
filing a worker's compensation claim
· Without
proper advance notice (in the case of mass layoffs)
· For
alleged poor work performance and given no opportunity to improve
· In a
manner contrary to policies and procedures as outlined in the company employee
handbook
6.PREVIEW YOUR
SEPARATION ANNOUNCEMENT. If
appropriate, ask to preview the announcement that your employer plans to
distribute to employees and/or the company regarding your separation from the company. Make
sure it HIGHLIGHTS your accomplishments and that it's worded to your approval
and that it doesn't hinder you in the eyes of your colleagues and possible
future employers.
7.PUT TOGETHER A
COMPREHENSIVE JOB HUNTING CAMPAIGN.
Redirect your energy and time into finding your next job. Work with a
professional resume developer and update your resume. Use several strategies to
find employment opportunities such as:
· Cold
call EMPLOYERS to inquire about positions.
· When you send a resume, make a personal
VISIT- it will bring your resume to the top of the pile.
· RESPOND
to “help wanted” ads (both in print and on-line).
· Register
with several employment RECRUITERS
(headhunters).
· Consider
investing in a PROFESSIONAL RESUME service. Your resume is a portrait of your work
skills, abilities, contributions – your overall desirability as an
employee. Would you consider hiring someone from a
Walmart portrait or a professionally done portrait?
· Notify
everyone on your PERSONAL and PROFESSIONAL network lists that you're available
for employment.
· Register
with your local STATE EMPLOYMENT AGENCY.
· Register
with your COLLEGE PLACEMENT OFFICE.
· CONTACT
all professional associations to which you belong. Inquire about placement
services that they may offer.
· Join a
JOB HUNTING CLUB to seek assistance and support.
· Post
your RESUME on-line.
· Visit
your local or state sponsored EMPLOYMENT CENTER From these centers, you can receive
assistance such as unemployment insurance, pension benefits, health insurance,
job hunting referrals resume writing job training and other related
matters.
8.KNOW YOUR EMPLOYMENT
VALUE. Know what you're selling before you try to sell it! Conduct a
thorough self-assesment and identify what “value” you can offer employers. In
short, what talent (knowledge and skills) do you posses? Answer the question, “Why would an employer want to hire
me?” or “What benefits will
employers derive from hiring me?” Don't expect that employers can easily
determine this from a review of your resume or from an interview – they often
cannot. Don't take chances, tell them
value you have to offer.
9.DETERMINE YOUR
MARKET WORTH. Conduct some research
or work with several employment recruiters or career guidance professionals to
determine what SALARY you can command, as well as what BENEFITS are typcically
offered to someone with your talent and expertise. ASL+AB=MW. Anticipated Salary Level +
Anticipated Benefits = Market Worth.
10. PREPARE A MONTHLY BUDGET. Do this immediately! Even if
you've got money saved away for rainy days, you should prepare a monthly budget
and keep your finances in order.
a) Include all
sources of income and expenses.
b) Cut all
unnecessary expenses, as you don't know how long it will be before you're
employed again.
c) Prepare a
budget a for at least the next 6-12 months.
d) Make only the
minimum payments on your credit card and other debts until you start receiving a
paycheck again.
i)
Check out skip payment options
ii) Check out
interest only payment options
11. ASSEMBLE A SUPPORT TEAM. Put together a small
team of people that can help undertake some of the work involved in changing
employers or careers.
a) It's a good
idea to call in your IOU’S
b) FAMILY
c) FRIENDS Don't
be embarrassed to ask for help. Job hunting can often be a lot of work –
sometimes too much for a single individual.
d) Assign
RESPONSIBILITIES according to the talents, time available, and willingness level
of each person on your team. Keep in touch with all members on a weekly basis;
find a way of motivating each member, offer different forms of “compensation,”
if necessary, such as bartering of services.
e) Visit career
CHAT ROOMS on the Internet. Many of today's most popular career employment
websites (such as www.monster.com)
offer chat rooms where you can discuss your job hunting problems and issues with
other people in similar situations. These chat sessions can boost your moral and
spirits – they're free and available 24/7.
12. SEEK OUTPLACEMENT ASSISTANCE. Ask your employer for
assistance from an outplacement firm – or an individual trained in outplacing
professionals. WHY? These people are
trained and experienced in making the transition work – don't underestimate
their value. They can help you with
a) updating your
RESUME
b) ROLE playing interviews,
c) FINDING
potential employers,
d) negotiating a
SALARY and other important issues. If your employer refuses to provide you with
such assistance, consider hiring a
placement service yourself or at least register with several employment
recruiters (AKA headhunters).
13. GET
A LETTER OF RECOMMENDATION Ask your employer/supervisor for a letter
of recommendation that you can use when seeking new employment. (Here's a reason
for not going ballistic when you first learned that you were laid off; by acting
professionally , your employer is much more likely to provide you with a
valuable letter of recommendation.)
14. DOUBLE CHECK YOUR REFERENCES. Don't
take chances with your references. Hire a career counselor or employment
recruiter to contact your past employers to request a reference. Know what each
reference is saying about you.
15. HIRE A CAREER COACH OR MENTOR. Need medical advice? you go
to a doctor. Need legal advice? you go to a lawyer. Need employment advice? Go
to a career coach. Do some research and identify a few people who are leaders in
your community. Then, contact them and inquire if they would be willing to coach
you in making the transition. If they are willing, then you can negotiate the
terms of their assistance, including compensation. Meet with your coach weekly,
even if it’s only a phone call.
16. APPLY FOR UNEMPLOYMENT BENEFITS. Visit
your local State Employment Service and file for unemployment benefits. Don't think of this as charity; its
not. You've earned it; part of
your past paychecks have gone to the unemployment insurance fund.
17. CLEAN OUT YOUR WORK AREA. Remove all
personal possessions from your work area. Do not take anything that belongs to your
employer, such stationery and general office supplies, as your employer could
charge you with theft. If you think that cleaning out your work area may be
an emotionally upsetting experience, ask your employer if you can do this after
hours when the office is empty.
18. CONSIDER ACQUIRING NEW SKILLS. Consider
returning to college or enrolling in a specialized course to develop new
knowledge and skills. Acquiring new skills will increase your self-worth and
future career opportunities.
19. BE OPEN and HONEST WITH YOUR FAMILY. Don't keep them in
the dark. You need support and your family wants to help. Gather them together,
inform them of your dismissal and answer questions that they may have. Be POSITIVE and assure them that while
there may be changes, the future looks bright.
20. TAKE CARE OF YOURSELF PHYSICALLY AND
MENTALLY. Being laid off can cause stress and anxiety that in turn can
negatively affect you physically and mentally.
a) Don't try to
bury or IGNORE this stress – doing
so can only lead to further problems. Deal with the stress by
b) IMPROVE your
eating and diet, start/continue EXERCISE.
c) SOCIALIZE - you
need that especially during this time.
d) Get enough
SLEEP rest and relax and above all,
e) TALK to a few
select confidants or professional counselors about how to deal with your
situation. Forget the “tough guy”
attitude and find proper channels for your stress. If necessary, consult
your family doctor at the first sign that you're not handling stress well.
21. SAY GOODBYE TO YOUR CO-WORKERS PROPERLY. Take time
to
a) SPEAK to each co-worker individually to
say good-bye, either in person or by phone.
b) THANK each person for his or her
assistance in the past.
c) Do not go into
DETAIL about your termination –
simply indicate that you were laid off.
d) Be PROFESSIONAL - show some class, do not
bad mouth your employer – how you exit will be remembered by your colleagues.
Besides, hey may be in a position to refer you to new employment
opportunities.
22. CONSIDER A CAREER CHANGE. Being laid off form a
job may be a signal you're in the wrong career. If you don't like what you're doing, or
can't do it well, this may be because you've chosen the wrong occupation.
Read a few books on changing careers or work with a career counselor to
determine if a different career would be more enjoyable and rewarding. Consider
self-employment?
23. BUDGET YOUR TIME. Plan your time as you would
a business project.
a) Determine what
goals you want to achieve each day, week or month that you're unemployed.
b) Reserve time
for job hunting, socializing, relaxing and resting, upgrading job skills and
other important factors.
c) Don't just let
each day happen as you may soon find yourself wandering aimlessly through this
difficult time.
24. MAKE GETTING A NEW JOB YOUR PRIORITY. Although you may have
the time to take a break, the longer you are out of work, the more difficult it
will be to explain your hiatus to potential employers. Find a job, and if need be, then negotiate
some time off before reporting to work in your new position.
25. GET YOUR HEAD
ON STRAIGHT
a) Adopt a POSITIVE attitude.
b) Choose to
release your ANGER.
c) Understand that
you can't change past; don't let it change YOU for the worst.. After all, no
employer will want to hire you if you've become a bitter, sour individual.
26. WRITE A THANK YOU LETTER TO YOUR
EX-BOSS. In spite of the fact that your employer just laid you off, you
should send him or her a thank you letter for the time spent at the company. In
most cases, you were probably laid off for reasons other than your job
performance. Therefore, in the future, your employer may have a good opinion of
you. If you leave on a positive note, there's a chance that your employer may
consider you regarding future employment. In your letter, point out your
accomplishments as well as the opportunities your position gave you and be
sincere in your appreciation.
27. CONSULT YOUR UNION. If you are a member of a
union, consult your union representative immediately to learn what assistance
the union can provide.
28. CONSIDER CONSULTING or TEMP-ING.
a) If you need
immediate income, this is a fast way to earn it. In addition,
b) the fact that
you're working immediately will boost your self esteem and show potential
employers you are skilled and valuable.
c) Don't exclude
the possibility of consulting for the company that just laid you off. If the
reason you were laid off was failing revenues of the company, they may be
interested in hiring you as a consultant (which usually costs less than hiring
you as an employee). After all, you already know the work to meet the needs of
the company's client base!
29. SEEK TO SECURE THE FOLLOWING. Remember, you have the legal right and
moral obligation to yourself and your family, to NEGOTIATE the best separation
package possible package possible. Here is a list of things that you may want to
seek when negotiating with your employer:
Paid severance. Try to get four weeks
for each year of service, but be
happy with three.
Stock options.
Cash for unused sick leave or vacation
time
Annual bonus (if you've received them
in the past) and profit sharing monies.
Sales commission and/or bonuses.
Extended health insurance coverage
(under COBRA)
Outplacement
assistance
Letter of
recommendation
Rolling over your
401K.
Convert company paid life insurance to
your own insurance policy
Continued use of company vehicle (for a
period of time)
Purchase of your
business computer
Copyright and patent rights for
appropriate compensation for
creation of works or interventions that you created during your period of
employment.
First right of rehire (in the case of
downsizing if new employment opportunity becomes available
30. KEEP A PAPER TRAIL. Keep a record if
all documents that relate to your job, your performance,
a) including a
copy of your employment contract,
b) job
notification letter,
c) job
description,
d) performance
appraisals, awards, citations, memos indicating you've done a good job on a
particular project, etc. This documentation can be critical to what you can
negotiate in terms of a severance package.
31. REVIEW YOUR CONTRACT. Read your employment
contract carefully! Were any of the
terms of your employment breached by your employer when you off? If so, you
may have a legal case against your employer.
32. KEEP A DIARY. Information that you've stored
in your work diary can be helpful to your cause in order not to rely solely on
your memory to recall important facts, events and dates.
33. SEAL YOUR PERSONNEL FILES To prevent
any misinterpretation of your work performance by anyone in the future, ask your
employer to seal your personnel file. By doing so, you and your employer agree
that no one will be able to view your personnel file without your permission.
Obviously, this is a negotiable item.
34. FORWARDING
OF YOUR MESSAGES. Ask your employer
if he or she is willing to forward any phone calls or e-mail messages that you
may receive for the next few weeks. This will give you ample time to inform
colleagues, friends and associates of your separation from the company. In matters of business, make sure you refer
that person back to someone at the company who can help them.
35. BINDING
AGREEMENT. When you and your
ex-employer have come to an agreement, make sure your employer agrees, in
writing that any benefits due you
will continue if the company sells out to a new owner during the period
your benefits are due. (retirement, etc.)
36. NON COMPETE
AGREEMENT. Often, employers will try
to get you to sign a compete agreement that will restrict who, where, and when
you can engage in similar employment. Consider this carefully.
37.
NON-DISPARAGEMENT AGREEMENT.
Many employers will ask you to sign and agreement that forbids your to
“bad-mouth” the company, its employees and its products or services. These
agreements are OK as long as your get or keep something in return.
38. Take YOUR MONEY WITH YOU. When you leave a job it is
often advantageous to move the money to your control and away from your
ex-employer's plan by rolling over your 401(k) money directly to a Rollover IRA.
A direct rollover will avoid taxes and the early withdrawal penalty.
39.
DON'T WORRY You'll find a new
job soon. It often takes an experience such as this to help us grow and discover
new experiences, friends, places and new opportunities.
Helpful Internet Locations For Dealing With The
Pink Slip
http://www.familycorner.net/jobloss/index.htm
http://www.rileyguide.org/cope.html
http://families.osu.edu/news/job.html
http://careerplanning.about.com/cs/jobloss/
http://ph.jobstreet.com/career/streetwise/Career60.htm
http://www.uwsc.org/Features/jobloss2.htm
http://www.joblayoffsupport.com/
Home page: http://blueridge.cpcusociety.org/
Last Updated: February 18, 2004 Harry L. Waldron, CPCU