TOP 10 THINGS YOU SHOULD DO IF A LAYOFF IS ON THE HORIZON

As an executive in the outplacement business for over 10 years, I’ll let you in on a little secret: Layoffs in most companies are managed by small, well trained, highly motivated teams that are sworn to secrecy. That’s because proper execution (pardon the language) and confidentiality are critical — if word got out prematurely, or the project was poorly executed (there’s that word again) holy hell would break loose. The most mobile employees (the ones every company wants to keep) would be the first to jump ship, and rumor of a downsizing destroys productivity. At least that’s what the hired downsizing consultants say.

When the layoffs are announced, employees are often taken by surprise, and they quickly learn that the company won’t value their interests over its own. This is when outplacement consultants spring into action to help traumatized employees make a quick transition from job-loser to job-seeker. Before you know it, it’s too late to get the things done you need in order for you and your family to survive. Here are my top ten things you should do at the slightest hint of a layoff. You may have a similar list — great, share it with us.

· Download that Roladex you have on company-owned computers to your personal computer at home. These contacts will prove invaluable as you conduct a job search. Yet, one of the fist things companies do is cut off computer access and confiscate company-owned equipment for terminated employees. The company has no interest in making it easy for you to regain access. Many absolutely refuse to let you back in. I have seen some notable exceptions, but do not assume your company will be among them.

· Share your suspicion or concern with a spouse or significant other. Broaching the topic early makes it easier to announce it when it finally happens. Now is a good time to begin the discussion about changes you’ll need to make because of reduced income. An acquaintance I knew in my New York days continued to commute to the city five days a week for a full six months because he couldn’t bring himself to tell his wife he had been laid off.

· Review and update all your professional memberships—another great source of contacts when looking for work. If there are professional meetings scheduled, attend them and meet as many people as you can. Be particularly helpful and seek out people who are between jobs. They will be familiar with the job landscape and may have valuable contacts that will be helpful to you. They may even know of job vacancies that for one reason or another proved inappropriate for them. They will also have long memories and recall the help you may have given them when they needed it.

· In a similar vein, renew old acquaintances—high school, college, around town, church and elsewhere. Do not assume that only contacts “at your level” will be helpful to you. Senior level people in particular make this mistake. More than a few of my most senior clients (including CEOs) got their job leads from sources much lower on the organizational pecking order.

· Get that credit card debt under control. Keep your cards but shed the debt. You’ll likely need credit later on but may be unable to qualify for enough of a credit line if you are unemployed. I have known people who shop day and night for the very best price; charge what they buy; and pay it off over time. At current credit card rates, it doesn’t take much to erase what you gained by being a “good” shopper to the interest you are charged in a single month. I am not one of those who contend that any and all debts are bad. But I do firmly believe that credit card balances make no sense at all. If you can’t pay for what you buy with a credit card when you buy it, it likely means you cannot afford it. Most credit cards have a hidden trap — when you miss a payment your rates get raised to super usury levels for what you buy next as well as on your current balance. My credit card company tried to charge me a late fee because I paid half my balance before it was due and the other half when the bill came. Their argument was that I was charge a late fee because I “failed to pay the entire balance ahead of time.” It didn’t take long to win that battle, but I wonder how insistent I would have been if I really needed that card.

· Get copies of all your personal company records. Now is a good time to collect previous performance appraisals, customer comments and position descriptions from other jobs you have held. These documents are good reminders of what you have accomplished and form the basis for your new job search. This is true even if you plan on changing careers. Future employers are still interested in what you’ve done. Don’t just confine yourself to performance appraisals. Also go after any documents that demonstrate you had company insurance. This is called proof of insurability and could be important under certain circumstances when trying to find another insurer.

· The other side of getting your credit card debt under control is to slow down on your spending and save, save, save. It is a good time to make sure you have an adequate “rainy day” fund. “Already got one,” you say? By cutting back on spending, a six month reserve can easily be converted to a full year’s supply of funds. It’s good to know how long your cash will likely last in the event you become unemployed. Also, it’s surprising how much unnecessary spending we do when next month’s paycheck is there to bail us out.

· Notice what companies are hiring or are likely to hire people with your skill set. If you know people in those companies, now is a good time to renew those acquaintances; if not, now is a good time to get to know someone.

· Follow the three-for-one rule. That’s the rule that says for every one person you contact, try and extract three additional names of people they think might give you additional information. Very quickly you will build an incredibly large network of people to call on. Good record keeping is critical to this process. Be sure and capture all relevant information — who referred you; when they did it; when you contacted them and how; what follow up did you commit to, etc. Getting in the door is easier if you can drop a familiar name.

· Check with the appropriate local or state offices who know the law regarding layoffs in your state. I am not suggesting that you make the process necessarily litigious. But it is helpful to know what companies can and cannot do. For example, in some states you can sign a release of liability form and still have time to rescind your decision. The nuances are too numerous to cover here. It is important to know what your legal rights are.

· RELAX. If you have followed the steps outlined here you’ve done more than most. Furthermore, if you have given yourself enough lead time, you will likely find work — if there is work to be found.

This last phrase “if there is work to be found,” is my way of suggesting that the economic mess in which we find ourselves is arguably the outcome of waging two wars while insisting on upwardly redistributive tax breaks in a low regulatory environment. It is the ultimate failure of public policy and proof positive there is no invisible hand that automatically converts narrow self-interests to the collective good.

Tags: Bill Holland, downsizing consultant, layoffs, outplacement, proof of insurability

This entry was posted on Wednesday, January 7th, 2009 at 4:25 pm and is filed under Directors Blog, blog, home. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.