Getting laid off is no fun, no matter the economy. Finding out that your job is gone can be such a shock that you can’t think clearly about the decisions you have to make. Here are some issues to consider to help you manage this jarring time in your life.
What to ask for before you leave the office for the last time
Last paycheck. You’re about to be in a situation where there’s not a steady income. Finding out when your last check will go into the bank can help soften the blow. Many companies will just process your final payment as usual (as part of the next two-week cycle or at the end of month).
Unused vacation time or sick leave. One benefit that many companies offer is rolling over unused vacation time or sick leave. Most pay out for those days when you leave or are laid off. Will this be in a separate check or included in your last check? See if the HR rep will give you an estimate of the amount that you’ll be receiving.
Severance. Severance is based on years of employment, where you get an amount for each year you were with the company. It’s often paid in one lump sum. Yet severance can be more than just money. Some companies will extend healthcare benefits for several months. Others might offer career counseling or a transition service to help you find your next job. Severance packages are negotiable – if you think you’ll need career counseling or health benefits for longer, don’t be afraid to ask.
Healthcare. Even if you’re not getting your healthcare extended through severance, you will need to provide for health insurance. COBRA gives those who’ve lost their health insurance the option to continue in the group health program provided by the company. But it’s expensive. You will be expected to cover the total cost (company contribution and your contribution) for this plan.
References. Unless you’re retiring, you’ll be looking for a new job. If you’ve been laid off, getting a reference from your employer shouldn’t be a problem, but make sure you ask your supervisor if they are comfortable giving a reference.
Retirement money. Your 401k balance might seem like the pot of gold that will see you through these times. Try not to touch it, as early withdrawals can lead to tax penalties and loss of retirement income down the road. Your company may allow you to remain in the plan at no or a low administrative cost. If you have a great set of investment options, this may appeal to you. If you have any concerns about the investments in your retirement plan, consider opening a rollover IRA where the options will seem limitless. You may also be able to roll your 401k balance into a new employer’s plan once you land a job.
HR contact info. If this is a large-scale layoff, you may receive a packet of information to review at your convenience and only have a few minutes with the HR department. Take as much time as you can to ask the questions above – even if your exit interview stretches longer than they may have been hoping. The more you can get answered now, the better off you’ll be. Before you leave, make sure you have an HR rep’s contact information in case you have questions later.
When you get home
Chill. Listen to some relaxing music. Vent to a friend. Have a cold beer. Do something that will get you from that state of “I can’t believe it’s happening to me” to a state of “I’m ready to start handling this”. Try not to let it linger – an evening of feeling sorry for yourself is allowed. If exercise motivates you, plan to get up the next morning with a workout and attack the situation.
Unemployment benefits. Unemployment benefits don’t suddenly start just because you fill out the paperwork. It’s a government agency that verifies who you are and the fact that you worked. It can take weeks to see the first check, so apply for unemployment immediately.
Job search. If it’s been a long time since your last job search, plan out what you need to update. Who are your references? Call them to touch base about your situation (and to see if they know of any jobs). Update your resume. Sign up for job boards, use your Linkedin contacts, and get the wheels turning on a new job.
Money. Only you know where you are on the money spectrum. However, even if you have an emergency fund, look through your bills to see if there’s anything you could cut until you find a new job. Think about part-time jobs, even something as small as dog walking. Making a little (and getting some exercise) will make you feel better than doing nothing.
Layoffs happen to all of us. I wish I had known how much you can negotiate the first time it happened to me. If you leave the office and think of something later, call the HR rep and ask for it. The worst they can do is say no.
Photo by Anna Shvets