Over the last several months the news has highlighted one company after the next that has been laying off employees. From DoorDash to Amazon to Masterclass few industries have been safe. And with more companies announcing each day many people are left wondering what they can do in order to prepare for the possibility of a layoff?
- Start or Add to Your Emergency Fund: The typical rule of thumb around an emergency savings of 3-6months of your nondiscretionary expenses (rent, mortgage, cell phone, groceries, etc.). However, given the economic uncertainty it may take a little longer to find a new job or you may need to take a position that has a lower starting salary. Because of this, consider adding additional cash to your emergency savings. In addition, look at what expenses you would cut out if you were to be laid off.
- Keep a detailed list of your accomplishments and daily tasks. This is great to do this time of year regardless of if you are concerned about a layoff. Having this list already curated will help you to build up your resume and will give you talking points during an interview. Big and/or sudden job changes like this can take an emotional toll. Having this list ready to go will help to reduce stress if you reenter the job market. Additionally, we are at year end meaning that performance reviews are right around the corner and this list could be immensely helpful during this conversation.
- Have a copy of your employment contract. Some companies will detail in that contract what type of severance you would receive if your position was terminated for reasons outside of your control. In some cases, you be offered a severance package that is better than what was originally listed. However, you want to make sure that you are at least getting what you agreed to in your employment agreement.
No matter where you are in your career the thought of a layoff is always emotional regardless of how much prep or emergency planning you do.