Facing unexpected job loss can be daunting, but it’s essential to approach the situation strategically and proactively.

Here’s a comprehensive guide on navigating through this challenging but temporary phase in your career.

Let’s get you back on the winning track fast!

UNDERSTANDING YOUR SITUATION

Before anything else, you need to develop a crystal clear awareness of your situation.

Laid Off vs. Fired: Know the Difference

Being laid off is not the same as being fired. While both scenarios can have negative repercussions for your career, being laid off is often more manageable in the long run.

Laid Off:

  • Being laid off typically occurs due to reasons beyond your control, such as company restructuring, financial difficulties, or downsizing.
  • It’s essentially a dismissal from employment because the company no longer has a position available for you.

Fired:

  • Being fired results from performance issues, misconduct, or violation of company policies.
  • It’s a more severe form of termination and can have lasting implications for your career, including potential damage to your professional reputation. In some scenarios it may carry illegal or contractual consequences.
  • If you are fired, consult with a lawyer. (This is not legal advice, just a friendly recommendation)

What Does It Mean to be Laid Off?

A layoff is a big deal…

Research indicates that layoffs can have far-reaching effects, impacting not only your career but also your mental and physical well-being, as well as your family life.

Depression Risk:

  • Studies suggest that layoffs can significantly increase the risk of depression, particularly among men. (Source: NCBI)

Long-term Consequences:

  • Research shows that layoffs are associated with subsequent unemployment, enduring earnings setbacks, and diminished job quality. These repercussions can have a lasting impact on your financial stability and career trajectory. (Source: NCBI)

Psychological and Physical Well-being:

  • The aftermath of a layoff often involves declines in both psychological and physical well-being. Stress, anxiety, and feelings of inadequacy may surface, contributing to overall lower levels of health and happiness.

Social and Family Dynamics:

  • Layoffs can also disrupt social connections and family dynamics. The strain of unemployment may lead to social withdrawal, strained relationships, and challenges in maintaining family well-being. Additionally, children may experience setbacks in their academic and personal development due to the financial and emotional stress within the household.

All of this is really, REALLY bad!!

This is why, understanding the full impact of a layoff is crucial. Our job is not to turn away or hide from reality, but to deal with it. Full awareness of what it might mean to be laid off, is the exact medicine we need in order to overcome it.

Ultimately, if you are laid off: It’s not happening because of you, but it is happening to you.

And it will be essential to address both the practical and emotional aspects of this significant life change…

Why Do People Get Laid Off?

Companies lay off employees for a variety of reasons, spanning from seemingly innocuous to potentially dubious practices that border corporate malpractice.

The core reason behind layoffs is the preservation, or the further development, of capital. (In capitalist systems, capital takes precedence to human resources)

Some common reasons behind layoffs include:

  • Shifting Organizational Structures: Changes in organizational strategies (merging departments, creating new divisions, mergers, acquisitions, shifts in market focus, etc) may necessitate restructuring.
  • Expense Management: Limiting expenses is a common rationale behind layoffs, especially during economic downturns.
  • Staffing Reductions (Various Reasons): Companies do reduce staffing levels due to performance issues, redundancies, or changes in demand for their products or services.
  • Relocation: Relocation of business operations, can prompt layoffs as companies adapt to new circumstances.
  • Outsourcing: Outsourcing certain functions or processes to external vendors has been a consistent reason for layoffs.
  • Seasonality or Cyclical Projects: Industries with seasonal fluctuations, such as agriculture, or industries that have variable staffing levels to match production cycles or project timelines, such as the movie industry.

(Pro Tip: By understanding, and learning to effectively communicate the reason for your layoff will be important in your job applications. If, for instance, your job was outsourced or you were laid off due to the closure of your department – anything that prevents your performance from coming into question – it helps to communicate this to future employers)

What Are The Impacts of Layoffs?

Contrary to popular belief, employers don’t take layoffs lightly. Research suggests that layoffs can have adverse effects on both individuals and corporate performance, especially in the long run.

Remember: a layoff is akin to the breaking of a promise, or a betrayal of expectations – it hurts a company’s reputation, and brings the competence of their managers into question.

While layoffs may offer short-term cost savings, or even provide temporary boosts to the stock price of a company, layoffs often lead to negative outcomes such as:

  • Bad Publicity
  • Loss of Knowledge
  • Weakened Employee Engagement
  • Higher Voluntary Turnover
  • Lower Innovation 
  • (Source: Harvard Business Review)

Moreover, in some sense, layoffs taint the worker pool. Laid off workers experience significant shifts in their attitude toward their employers. In fact, recent studies indicate that experiencing a layoff can significantly impact an individual’s career trajectory and job stability. Individuals who have been laid off are:

  • 56% more likely to quit any job following their first layoff.
  • 65% more likely to quit the job immediately following a layoff.
  • (Source: Wisconsin School of Business)

Ultimately, layoffs are an unpleasant but persistent reality both professionals and corporations need to contend with. Therefore, developing a resilient attitude and taking a proactive approach becomes paramount.

AFTER THE LAYOFF: TOP PRIORITY

Your first priority after a layoff should be gaining control over your mind, then your finances, followed by tying up loose ends and addressing necessary tasks for the road ahead.

Get Your Bearings

Gaining control over your mind and thinking clearly is your most important priority, because if you don’t do that, you can’t do anything else.

Acknowledge and Process Your Emotions:

Feelings of uncertainty, frustration, or anxiety are natural following a layoff. It’s essential to acknowledge and process these emotions to maintain your mental well-being. Seek support from friends, family, or support groups to create an ecosystem of healthy emotions and friendly support.

Unveiling Corporate Realities:

One of the benefits of a layoff is that it strips away the veneer of civility, revealing the true reality of the corporate world – a reality HR departments work tirelessly to hide…

A layoff highlights that corporations primarily serve the interests of capital, utilizing human resources (people) without necessarily prioritizing the well-being of those resources (people).

In blunt terms, corporations use people, and layoffs make this reality painfully evident.

Empowerment through Realization:

Realizing this truth can be both empowering and jarring. It shows you that a mutual exchange – your time and energy for their money – was not only the basis of your relationship, but it was actually the entirety of your relationship!

A layoff shows that loyalty or corporate benevolence does not exist, despite all the attempts by corporations to create that illusion.

The only thing a corporation cares about is shareholder value.

While this realization can be empowering, it can also be emotionally challenging. Therefore, it’s crucial to get your bearings and prioritize your emotional well-being first.

It’s OK. What you’re seeing is real. What you’re experiencing is valid.

Assessing Your Finances

Once you’ve got your bearings, it’s time to get to business…

Evaluate your monthly expenses against your savings. Identify critical expenses that must be covered immediately, such as rent or mortgage payments and healthcare costs. Prioritize these expenses and make sure your basic needs are met.

This assessment will help you develop a budget, and provide clarity on how long your savings can sustain you during the period of unemployment.

If you do not have at least 6 months worth of expenses in cash, you need to IMMEDIATELY generate new cashflow. This can take the form of any job, even jobs you may consider beneath you, including jobs that will never appear on your resume.

If you do not have that minimum 6 months worth of expenses right now – stop reading this document and go get any position you can that will put you back in positive cashflow.

Severance Package

Evaluate the severance package offered by your employer. Carefully review its terms and conditions. Understand the duration of benefits, eligibility criteria, and any additional support provided to help you.

Keep in mind that severance packages can be negotiated depending on your level of power and leverage at your organization. Also, not all severance packages are equal… Some severance packages can make your transition effortless, whereas other severance packages may have some terms (such as non-disparagement or non-compete clauses) that make them untenable.

We recommend you speak with a lawyer when navigating complex severance packages. (This is not legal advice, just a friendly suggestion)

Unemployment Benefits

Determine your eligibility for unemployment benefits in your state or country by researching their requirements. Familiarize yourself with the application process and gather the necessary documentation to expedite the application process.

Keep in mind that, if you are eligible, unemployment benefits are your right. You’ve paid into them, and you have the right to access them.

Financial Assistance Options

Research available resources for financial assistance, including government aid programs, and community support services. Determine your eligibility and apply for assistance where applicable.

Prepare for the Future

After getting your mental bearings, and organizing your finances – it’s time to prepare for the road ahead. It pays to get these details taken care of first…

Ask for References:

Reach out to former colleagues, supervisors, and mentors to request references while your interactions are still fresh in their minds. Clearly communicate that you’re not seeking references for a specific job but for future job applications.

Keep in mind that some people may be uncomfortable interacting with you after you have been laid off. Take utmost care when communicating with former colleagues, especially if they still work at a company that you’ve been laid off from. Be professional and friendly to increase the likelihood of a positive response.

Meet with Your Network:

Prioritize connecting with your professional network and business friends to maintain and strengthen relationships. By socializing with them early on after your layoff, you will warm up the relationship before you ask them for referrals or job opportunities.

Remember: networking is often the most effective way to secure high-value job opportunities, so invest time in nurturing these connections.

REASSESSING YOUR CAREER PATH

A layoff can be a great opportunity to reevaluate your path, and make some decisive changes. Here’s the fastest way to do it…

Reflect on Your Skills and Interests:

  • Identify your skills, strengths, and areas of interest.
  • Itemize your transferable skills that can be applied across industries and roles. Highlighting these skills can broaden your job prospects and open doors to new opportunities.
  • We highly recommend that you review the five core skills and seven high-value disciplines.

Rewrite Your Resume from Scratch:

  • While this may be an unpleasant and tedious experience, it can make a colossal difference in your income as well as job satisfaction.
  • Start fresh…
  • Recreate your resume to showcase relevant skills and experiences that align with your desired roles. 
  • Don’t write your resume for your last job. Write your resume for the job you really want.

Become More Valuable:

  • Freelancing or Consulting: Explore freelancing or consulting in your field of expertise. This way, while looking for a permanent role that checks all your boxes, you can gain a broader set of experiences as well as supplemental income.
  • Upskilling or Reskilling: Invest in additional education to enhance your skill set and stay competitive in the job market. Consider courses, certifications, or workshops that align with your career goals and interests. 

TAKING ACTION

Define Short-term and Long-term Goals:

Establish clear and achievable goals to navigate your job search and grow your career. By setting both short-term (3-6 month) objectives and long-term aspirations (3-6 years), you’ll be able to prioritize your responsibilities alongside your passions.

We recommend you outline:

  • 2 professional and 1 personal goal to achieve in the next 6 months
  • 3 professional and 3 personal goals to achieve in the next 4 years

We teach our students to do this kind of goal setting using a single piece of paper in a quiet room over the course of 20 minutes. Get away from distractions, focus, and give yourself a deadline – do these, and setting your goals will be easier than you think. (Because, let’s face it – deep down inside you already know your goals, you were just waiting to articulate them… and well… perhaps this is what you’ve been waiting for)

Expand Your Job Search Strategies:

Utilize reputable resources to optimize your job search efforts and increase your chances of success. Consider the following:

  • The Straightforward Guide to Finding a Job: A comprehensive guide that offers practical tips and strategies for navigating the job market effectively.
  • The Ultimate Guide to Finding a High-Value Job: An extensive resource that provides insights into securing high-value employment opportunities and maximizing your career potential.
  • Launch Your Career: A valuable resource for individuals looking to kickstart their careers and achieve professional success. Explore actionable advice and strategies for building a rewarding career path.

By leveraging these resources and implementing strategic job search tactics, you can increase your visibility to potential employers and position yourself for success.

MAINTAINING RESILIENCE

Celebrate Small Wins:

Acknowledge and celebrate each step forward. Recognize your achievements, no matter how small, boosts morale and motivation (you’ll need it).

Keep in mind that tracking progress toward your goals triggers the release of dopamine, a neurotransmitter associated with pleasure and reward. (Source: Huberman Lab)

Stay Persistent:

Maintain a resilient mindset by persevering through setbacks and rejections. (You’ll need it)

Setbacks are a natural part of the job search process. The faster you learn to use them as learning opportunities to refine your approach, the faster you’ll improve your outcomes.

Manage Stress:

Incorporate activities that promote relaxation and stress relief into your daily routine. Whether it’s exercise, meditation, or pursuing hobbies…

Find what works best for you to alleviate stress and maintain emotional well-being. (You’ll need it)

CONCLUSION

Job loss can be a challenging experience, but it also presents an opportunity for growth and reinvention.

By taking proactive steps you can use this situation, and learn to turn the tables with the corporate world.

We won’t give you a coping platitude like “a layoff is actually a good thing” or “here are top five reasons why your layoff is good for you”…

Make no mistake: it would have been better if you were not laid off. It is much easier to find a good job, especially a job that is a promotion, while you are currently employed. Outside of the obvious benefit of positive cash flow, being employed makes it easier to develop your career, as well as, to succeed in “side hustles”.

But what is done is done.

The important question isn’t why you ended up here or even how you ended up here. The important question is:

“What are you going to do about it?”

We recommend you use this experience to wake up to the realities of capital and human resources, and in the light of that realization, turn the tables with the corporate world by developing career skills that get you ahead.

We are here to help.