21 WAYS TO PREPARE FOR THE “L” WORD – A COMPREHENSIVE LAYOFF PREP LIST.

You have a steady job at a large multinational company that has already had two rounds of layoffs! Sound familiar? Many of us are in a similar predicament; if the layoffs aren’t imminent then they are on the back burner, ready to ambush; you can take that to the bank. Given the situation the economy is in, most of us should be preparing for being laid off. It is not pleasant but it is practical; it’s better than crossing the icy bridge on high heels.

I have been researching for this post and there is really not much real advice beyond the obvious “tips” that have often been written by high paid executives with golden parachutes in their “don’t you idiots know all this” tone. What’s even more unfortunate is that there is not much advice for how to manage the emotional fallout – a layoff is a crisis situation, one that can put a lot of stress on the individual and their family. The biggest challenge comes from having to deal with the unexpected at the moment it happens. It is hard for human beings to deal with a situation where they have no control over the unfolding events. I feel, given the state of the economy and the recession taking hold, we can all expect these drastic changes and it would be prudent to have a plan in place.

If you’ve been planning for a rainy day, this might be it. The hurricane clouds are gathering and it’s about time we put those storm windows in place. Besides the financial side there is the emotional and personal side that is often neglected during the planning phase. Since both my husband and I have been bracing for the “L” word, we have put a lot of thought in how to proceed once (if) the primary income earner of our household is laid off. Here are some steps that help you organize in case of a career emergency (layoff).

1. Consolidate and rollover all former 401Ks so that they are ready to draw from if need be.
2. Apply for a home equity line of credit.
3. Refinance your home mortgage while you still have a job.
4. Establish a relationship with a recruiter for contract jobs to tide you over while you look for a new permanent one.
5. Hold on to 0% balance transfer credit card offers.
6. Beef up your LinkedIn profile and other professional networking profiles.
7. Ask for recommendations and establish references.
8. Identify worst-case-scenario-jobs and get information about pros and cons.
9. Find out about unemployment benefits and what you will be entitled to.
10. Check your company’s policies regarding financial compensation and notice period for laid off employees.
11. Update your resume.
12. Reevaluate your home budget and make the necessary adjustments so there will not be a drastic change later.
13. Get information about county and state health benefits and resources if need be.
14. Try and get a three-month mail order for expensive prescription medication (through employers insurance).
15. Renew prescriptions from your doctor so you can get generics if need be for at least a few months after being laid-off.
16. Get family annual physical exams and dental appointments done while you still have your insurance.
17. Keep your flex claims up to date and get a list of items that are eligible for claims.

What has really helped my husband and me over the last few weeks is to discuss and have a concrete plan in place. In case there is a layoff in the family, we all need to decide how to go about managing. Here are some additional aspects that you might want to consider and have consensus on:

1. What and when to tell the children in case you are laid off. If you have children you know that your biggest challenge is to not let there self-esteem and confidence suffer while making them understand the need for lifestyle changes. I believe how you approach this varies on your values and your own reasoning. Personally, my husband and I have discussed this and would not like to make our children insecure. We have decided to tell them (in case there is a layoff) that we have decided to start our own business and quit work for a while to give this a shot. This also rationalizes the need to cut expenses because of the investment and sacrifice required for the business. (For us it is partially true, we both have skills that lend themselves to being self-employed).
2. If you have a spouse you also need to discuss what would be the best way to break the news to the your partner. Also what you will do the day of the lay-off. This might sound trivial given the circumstances but I strongly believe deciding on a plan of action from the get (let) go is part of getting some control back. For example if you are laid-off, will you first call your spouse and warn them, or just show up at home in the middle of the day? Calling ahead might give your partner time to collect themselves and will reduce the pressure on you as well.
3. You need to have a plan for the critical day of the layoff. The idea is to minimize the stress and collateral damage. A plan that the person laid-off will come straight home and do what…l would recommend a rigorous workout and no further discussion that first night, maybe even watch a movie at home and so on.
4. You might want to have a planned approach to the job hunt process as well. Something like, you will devote four hours first thing in the morning everyday looking for new jobs, workout for 45 minutes, 2 hours a day for networking (cyber, phone or face) and 3 hours finding gigs/improving skills/etc.

I hope you will find this list helpful and that these ideas might give you a starting point for further thought and discussion. The idea is to get a sense of control over our lives. God knows we all need it! Please contribute with your own ideas to make the layoff less stressful and more constructive.

Telonu Layoff Tracker