Background

You read the U.S. unemployment rate is at 9.4%. You want to be smart about preparing for a possibly layoff at your current employment, not knowing what the best practices are for this situation. Martha Finney’s book, Rebound: A Proven Plan for Starting Over After Job Loss, offers sound advice for workers, who will go through the sequence of events of facing a layoff, being laid off, and starting a job search after a layoff. At first, we’re shocked, feeling powerless in the situation, as we question our self-worth. However, after snap out of the initial shock, getting your financial house is order is job one. Finney recommends how to deal with severance packages and non-compete agreements, and how to start your job search plan.

Rundown

Losing your job is one of life’s greatest stressors. Finney provides a proactive plan for handling job termination. Rebound is an excellent resource of understanding how to prepare for a potential job loss, how to manage the emotional and financial impact of a layoff, and how to search for your next job.

Facing the Reality of a Layoff

You may have recognized the warning sign, so a layoff will come as no surprise. But it stills triggers a mixed bag of emotions, such as shock, alienation, isolation, and self doubt. Give yourself time to work through them; however, don’t let yourself give in to self-pity. Being fired also often instills a sense of being out of control.

Bottom line? You are the same person you were when you had your old job. In terms of control, you are now firmly in charge of your talent, money, time and other resources. In today’s changing work environment, opportunities constantly present themselves. The trick is to recognize these opportunities as they cross our path of how to create our opportunities.

Reading the Signs

You do not need to be intuitive to sense an impending layoff. Watch for these tell tale signs:

• Your industry is going through a market correction.
• The sales pipeline has stalled.
• Your organization is reducing expenses in all departments.
• You suddenly cannot do anything right, as your boss rides your performance.

If you feel you could be fired, get your finances in order. Finney recommended the following tips:

• Home equity loans: out-of-work people have a tougher time getting loans. Take advantage of being employed to secure a home equity loan, so you have cash available. Such loans have lower rates than credit cards and other emergency cash sources.
• Look into online savings accounts: many offer higher interest rates than banks.
• Term life insurance: your corporate life insurance policy may end if the company fires you. Prepare. Your family will need insurance whether you’re working or not.
• Company medical coverage: individual medical policies usually cost more than company-sponsored policies. Use your company policy while you still have it. Schedule expensive tests and undergo treatment if you have medical problems. Note you may qualify and pay for COBRA coverage for a limited time.
• Horde cash: if you are out of work, convert whatever you can to cash, consider eBay and Craig’s List to sell unwanted items. Pay with cash whenever possible, avoiding credit cards.

If you expect to lose your job, then conduct yourself in a professional, dignified manner at work. How you handle things now will affect how people, including future employers, think of you later. You have only one reputation. Send a letter to your former CEO thanking him or her for the opportunity of working at your old firm. I regret not knowing that I should have sent letters to my former CEO and COO years ago. I wish I would have know to do this gesture, as I was being laid off.

What are Your Rights?

Unless your company is obligated by contract or stated policy, it does not have to give you a severance package. This normally includes some form of payout in either a lump sum or guaranteed future installments. In return, the company may want you to sign a non-compete agreement or pledge not to say anything negative about it in the future.

Think carefully about your next steps. For example, signing a corporate severance agreement may not be smart. Take time to consider its full implications. Secure all the information you need to make an informed decision about what is in your best interests. Take extra time if you have a pending workers’ compensation claim that may be worth more than the severance payout;  believe discrimination is behind your termination and you need time to speak with an attorney; or you qualify for additional benefits.

For example, one company wanted me to sign a non-disclosure agreement or a “gag order,” so to speak. I didn’t think that was a good idea, so I declined. They declined to give me my two-week severance, but that was a trade-off, I was willing to make, after much deliberation.

Be careful, if your company wants you  to sign non-compete agreement. A non-compete pledge can prevent you from finding jobs that you’re qualified for, but happen to be with competitors of  your old company. Consider asking an attorney to investigate how much weight such agreements carry under the laws in your jurisdiction. You may want to try to convince your employer to ease the terms of its non-compete agreement.

The Axe Comes down

Out of work? Then cut back on cell phone expenses, dining out, and any other expenditures that are not “must-have” items. Finney recommends reflecting on the following:

• Your value as a person that’s not dependent on how much money you possess.
• The contributions you can make have little to do with your job.
• You can use tough times to teach your children how to deal gracefully with adversity.
• Happiness can be the best things in life are free.
• Solutions emerge, when you think about problems in a positive manner.
• Control your fear, even though you don’t know what the future holds.
• Exercise can make you feel good about yourself.
• Self-pity will not help you. Avoid it at all cost.

Job Search Action Plan

Your next step is to set up a formal plan to find a job. Develop a structure for your search, complete with specific, measurable goals such as, how many calls you will make and how many résumés you will send. To find a good job, take these steps:

• Develop a compelling story about yourself: your story should be no more than two minutes long. Rehearse the story, until you can deliver it like a pro. Plan to use it during job interviews, and when telling people within and outside your network about yourself.
• Network and social networking: contact people you knew 15 years ago, people from the gym, social groups – everyone. Tell them you are out of work, asking them for job leads. Use networking web sites. Send “Thank You” notes to everyone, who provides a lead.
• Dressing the part: don’t dress as if you are out of work. Dress neatly every day. Don’t make job-related phone calls in your pajama, since  a casual or sloppy demeanor will come through over the telephone.
• Looking for work is a full-time job: plan a “work” day like the one you are going to work. Your job search activities should occupy you at least from 9 a.m. to 5 p.m. Monday through Friday.
• Don’t jump at the first offer: apply the same careful criteria to evaluating prospective employers that they will be using to evaluate you.

Recommendation & Smart Lemming Radar

Feeling your company’s going to have a round of layoffs is scary. Going through the layoff requires clear thinking, even though we’re under duress, so we can protect our financial future. Rebound: A Proven Plan for Starting Over After Job Loss by Martha Finney is a must-read for workers, who fear the axe will come down on their job. Rather than getting caught flat footed, Finney provides an action plan to survive and thrive during this time of employment uncertainty.

Below is the Smart Lemming rating for Rebound: A Proven Plan for Starting Over After Job Loss. SmartLemming.com rated this book a perfect 4 on a scale of 4, as a must-read book for workers or women in business, who want to who need to add dealing with a layoff as part of their career management skills. This book rated 3 out of 4 in business life and leadership, as a should-read book, for workers who want to use it as a resource to improve their business life and leadership skills during times of job uncertainty. SmartLemming.com rated this book as an optional read for workers, who are interested in this topic from a management perspective. This book is not applicable for workers, who are interested in developing their marketing or sales skills. Below is also the rating scale used in the Smart Lemming Radar graph.

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