No one thinks it can happen to them, but it very much can. Most layoffs are supposed to be supportive, or at least amicable, since human lives are at stake. And yet, horror stories concerning layoffs without warning, or after subtle hints, are becoming more and more common. Society nowadays feels more brutal than it’d been over the last few decades, the industrialization throwing us in a big, fast-paced environment. Top performers are no longer safe; job certainty is almost impossible to guarantee. What are you going to do in this situation? Odds feel stacked against the employee, but there are a few ways you can prepare for the worst-case scenario. Let’s explore!
1. Build A Cushion While You Can
After multiple studies, we’ve concluded that saving from 3 to 6 months’ worth of essentials like rent, utilities, and groceries is necessary. This is your emergency fund, which is precisely what you need in case a layoff happens. But for most people, that feels impossible. So start small, and start today. Go for $500 in savings at first, then go for $1000. Automate transfers so you won’t even notice how savings are getting stacked up monthly. What you must know is that the key to everything is starting now.
2. Eliminate Unnecessary Spending
Many people don’t even realize they have three subscriptions they don’t use, a membership to a gym they barely go to, or nights out where their pockets start bleeding money. A layoff knocks you back to reality and in need of reviewing your budget, but why wait until then? Small changes can snowball into a big success, so cutting back on streaming services and expensive drinks while going out can stock up your savings account in a six-month period. Chances are, you won’t even miss these much.
3. Pay High Interest Debt
This subject is deeply uncomfortable, and rightfully so. We’ve all been there, desperate enough that finding a solution to a problem we have now means more than the struggles we’d face in the future. That’s why loans and credit cards feel like the devil’s handiwork, nine times out of ten. Paying these off while you’re employed lowers your obligations for when things might not be as easy. What some don’t realize is that if you only focus on savings while debt accumulates, you’d be reduced to ground zero regardless of your efforts. Paying these off also offers you leeway for when you might really need them again.
4. Learn Your Company’s Severance Policies
Companies don’t really talk about this. They have no interest in doing so, since learning about your rights makes you more powerful against them, should it ever come to that. So, whether you may find these in your contract, ask your manager or colleagues, make sure you learn what is normal for your company. Severance pay, extended benefits, job placement help, everything is extremely important to know when calculating your next steps.
5. Keep Your Resume And LinkedIn Updated
Layoffs mean you have to return to job-hunting. And fast. If you make it a habit to update your profiles every few months, you’d be doing yourself a great service. If you’re showing off, you attract attention. And job-hunting doesn’t have to happen only when you’re looking for a new job due to a layoff. Whether you feel dissatisfied or that you want more from what life has to offer, keeping yourself open to all possibilities is the way to go. You never know when a beautiful offer hits your email and changes the quality of your life for the better!
6. Understand Unemployment Benefits
Don’t do it all in a panic. When you’re employed and your mind is clear, you also perceive information more clearly. Try reading up on eligibility and how to apply now, so that it spares you the headache later. Every state has unemployment rules, so knowing how to file and what documentation you need is a gold mine when facing hardship. Some benefits take weeks to kick in. Hence, the faster you apply, the faster you get a decision and help!
7. Consider Developing A New Skill
If time allows, you can take up a side gig while you’re employed. If you do have a side income, from freelancing, tutoring, or selling homemade goods, that’s a brilliant tool to have during the rainy days. Besides, if you start now, you’re building up your savings so that your fall can be cushioned even more. Should a job end, you’re not starting from zero anyway! Beyond this, well, it’s an ego boost. You know your worth, and you know you can land on your feet during the worst of times.
8. Review Health Insurance Options
Sometimes, losing your job means losing your health coverage, which is a disaster. Look into COBRA, or maybe your spouse’s plan, or marketplace insurance now. The amount of stress you risk feeling after a layoff won’t allow you to make the best decisions, so investigating now assures a better quality of life. In the U.S., medical bills are probably the biggest risk during unemployment. Know your options and know your rights! Planning ahead saves both your health and money.
9. Plan So You Can Breathe
The bottom line is this: your future self will thank you. Layoffs are incredibly distressing, which makes planning ahead almost vital for your well-being. Save up, cut debt, update documents and research benefits so that you are protected from all sides. Everything you can do doesn’t save you from a layoff, but it allows you to fall on your feet. Your peace of mind is so worth it!