Losing your job can be difficult. However, employees can take a number of actions before, during, and after layoffs to get ready for their next phase.
Last week, scores of venture-backed start-ups as well as Twitter, Lyft, and Stripe all let go of thousands of tech workers. More layoffs may be forthcoming as the economy continues to strain businesses' bottom lines, according to experts.
While losing a job can be upsetting, there are eight things employees should remember if they believe their jobs may be in jeopardy.
Here are their tips for what concerns to bring up with your manager or the HR division while you are still employed:
Knowing your financial situation should be one of your first priorities if you're worried about losing your job or have already done so. Increase your short-term savings if you still have a job. Examine your spending to cut back on pointless purchases; cancel memberships and services you don't need. Find out when and what your final paycheck will include if you've been laid off. Ask HR to confirm specifics regarding benefits, such as if you would receive payment for any unused vacation time. It's also crucial to file for unemployment insurance as soon as you can; knowing how much you are qualified to get will help you see your finances more clearly.
Several forms, including an extension of healthcare benefits and/or career transition services, but they typically consist of a one-time lump sum payment made to employees on their last day of work. There are currently no federal laws requiring businesses to provide severance pay to terminated employees. However, New Jersey recently became the first state to pass legislation requiring employers to provide workers with a 60-day advance notice of a layoff, as well as severance pay in companies with 100 or more employees.
Receiving a lump-sum severance payment can feel like a windfall, but it can quickly disappear without a plan. Draw up a monthly budget and ask yourself these questions:
Have I got enough money to cover my mortgage and other expenses for a while? If you've been laid off, don't automatically assume you can't request more severance than the company is providing as part of its normal package, particularly when it comes to ancillary services like career transition coaching. In particular, if the business wants to keep the option open to rehire you in the future, it is in the best interest of the company to maintain a good relationship with you and foster employee loyalty.
Ask your company which stock awards you will forfeit if you discover that you will shortly be laid off and how long you have to exercise your stock options. Unfortunately, because of the recent sharp stock market decline, many executives have had to watch the price of their company's stock plummet. For instance, if you owned 20,000 shares valued at $30 each in January, your holdings may already have decreased by 25% or more. If your severance plan gives you a long time to execute your stock options, holding onto them until the market recovers can make sense.
Whether active employee healthcare coverage is continued during a layoff or brief leave of absence depends on the terms of your employer's health plan and the agreement with their health insurer or third-party administrator. Make sure to ask HR what kind of coverage, for how long, and at what cost you will be provided by your employer.
Ask your company which stock awards you will forfeit if you discover that you will shortly be laid off and how long you have to exercise your stock options. Unfortunately, because of the recent sharp stock market decline, many executives have had to watch the price of their company's stock plummet. For instance, if you owned 20,000 shares valued at $30 each in January, your holdings may already have decreased by 25% or more. If your severance plan gives you a long time to execute your stock options, holding onto them until the market recovers can make sense.
Ask your employer to send you copies of your previous performance reviews if you haven't saved copies of them before your departure date. You can use these details to your advantage when updating your resume and LinkedIn profile if you have tangible examples of your accomplishments and written words of support from your manager.
If you are high-income earner and can afford to funnel more toward your long-term savings, ask your employer if you can contribute the maximum amount to your 401(k) plan before your last paycheck. The maximum amount an individual can contribute in 2020 is $19,500 for people under 50 years old and $26,000 for those 50 and older. What happens to your retirement plan after you leave the company varies depending on the type of plan you have. Ask your employer what your options are, and consult with your accountant or financial advisor.
Losing your job, even when the reason has nothing to do with you, can bring feelings of loss, powerlessness, and grief. By asking your employer the questions above while you’re still employed, you can regain a sense of agency and learn what you need to do to proactively take care of yourself at the same time.
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