Human Nature Seeks Safety
We live in a world of uncertainty. Which is a bitter pill to swallow. Our brains are wired to seek conformity, recognition, security, and safety. For these reasons, anxiety and fear can ramp up and up and up. Whether it’s a virus run rampant, economic downturn, spiraling inflation, or [insert something that upsets you from the constant news cycle], we recognize that we have much less control than we wish for.
From day to day, many things affect our feelings of safety. Some can be small, for example somebody road raging on the way to work; and some can be big, for example coronavirus. Knowing this, isn’t it prudent to do some planning now so you can be ready when change strikes?
Is Job Security Real?
When I was young, my parents told me to work for a big company, do a good job, and let my work ethic speak for itself. They believed that this was the recipe for job security. And I think it was for a very long time. Today, things like unique skillset, a great reputation, or many years of service don’t carry the merit they once did. Today, what matters the most for Fortune 500 companies is shareholder value. Are you growing, efficient, and wealth generating?
Large corporations are held accountable to answering those questions quarterly. When the answers are no too often or for too long, things can become ruthless for those of us who simply wanted to do a good job, make a living, and maybe get a periodic recognition. The writing is on the wall for everyone at some point in their life. Since it could be you, I urge you to have a plan and to get your money and mind right now. Doing this, can keep you from being overwhelmed by fear and uncertainty.
Six Actions to Take to Prepare for Job Displacement
- Create an Emergency Budget: Go through your spending for the last 3 months. Make a list of your expenses, then categorize them as Needs (i.e. housing, utilities, food, clothing, transportation) and Wants (i.e. cable, eating out, memberships, subscriptions). For items in the Wants category, prioritize which you will cancel/reduce to conserve cash. If your job is really unstable, maybe you do this now. Otherwise consider this your plan on how to save money once you receive your notice.
- Increase your Emergency Savings: Standard advice for an emergency fund is 2-6 months of living expenses. To calculate this, multiply your reduced expense list from step one by the number of months you’re targeting. If you’re the single income earner in your home, I highly recommend six months – longer if you are in a senior position or industry with a smaller job market.
- Manage Debt Payments: Prepare a list of your creditors (think credit card, car loan, bank loans, etc.) and how to contact them. Even if you have sufficient savings to carry you through several months of payments, be proactive about communicating your layoff with them. Many creditors may offer economic hardship relief. This could be a modified payment plan or reduced interest rates. Know your options.
- Understand Unemployment: Research your state’s unemployment benefits. Different states permit a different duration of unemployment usually between 12-26 weeks.
- Understand Your Severance Package: Determine if your company offers salary continuation for displacements. Many corporations will pay you for several weeks or months after termination, if that termination is not related to an ethical violation or poor performance. Note, unemployment cannot start until salary continuation ends. Also, it’s important to read the fine print. Sometimes if you qualify for a longer period of severance, that severance be lost if you find a new job immediately after receiving your notice. If you are going to lose your job, look for the opportunity to get two paychecks. What that means is to find your new job after your salary continuation is confirmed.
- Engage Your Network: Update your resume and refresh your social media presence. This includes updating profile pictures and experience summaries for public sites like LinkedIn. As a bonus step, think about where else you might like working and reconnect with friends or colleagues already working in those locations. If you don’t have a connection to that company, try forming one through LinkedIn by searching for its Recruiters. Ultimately, you want to be public that you’re looking for new work. A great book to learn more about finding new work you’ll love is What Color Is Your Parachute.
Is This Your Chance to Start a Business?
One thing that is seldom discussed in larger circles, is the idea that a layoff may be your opportunity to start your own business. A coach once told me that working a corporate job is liking having one client. When that client fires you, everything feels unsteady. Conversely, when you open your own business you could have 20, 30, or 40 clients. When one client fires you…whoop-di-do!
I don’t meant to minimize the undertaking of starting your own business. There is a lot that goes into it, and there are many things to consider. And yet, for many of us there is a longing to do business on our own terms. If the idea of this intrigues you, I invite you to schedule a free clarity session with me. I’d love to explore your ideas with you and give you some insights:Clarity Consultation.
Ultimately, layoffs can be frightening. Just like illness or accident, a job displacement spotlights our inability to fully control our lives. The one thing you can always control however, is your reaction to your circumstances. Let’s minimize fear by having a plan and following through on it.
