Navigating Potential Layoffs: Steps to Prepare and Reduce Stress
The threat of potential layoffs in some industries can create real fear in our lives. “How likely is it for the industry or company I work for? Am I safe? Should I be concerned about layoffs?” The simple answer is ”it depends.” So what can you be doing now to be better prepared for layoffs and reduce stress and impact if they were to occur? Here’s some key questions to answer.
1. What intel do I need? Examine your industry and specifically your employer’s current financial health. Are profits up? Are you seeing more business growth? Some industries and companies are definitely less affected than others by current economic factors, but what trends are you seeing in your world? Is your product or service seeing growth in demand or decline? Within your company, find out if and how financial goals are being met. Most companies publish their annual reports on their websites, but a quick Google search for trends in your industry could really shed some light on the big picture. How are your competitors doing? Who’s hiring? Are layoffs already occurring in your industry? Ignorance may be bliss, but a better understanding of what’s really happening out there should help you plan appropriately and reduce some of the stress and worry associated with how it might play out in your situation. You may find that a layoff is not very likely for you, and that alone is good to know.
2. Should I start applying? If you feel that there is a potential for layoffs in your company in the near future, start searching for new opportunities sooner than later, and be ready to apply. Having options can definitely help us feel less stress about our careers. Now, more than ever, it’s a good idea to start searching for that next opportunity, and if you find opportunities you’re interested in, apply. What could it hurt? Remember that applying is not the same as taking a new job, and if you don’t apply, you’re not in the running for the position. Update your resume and LinkedIn profile, and keep them up to date just in case. Use job descriptions to guide your resume and cover letter content to be an accurate match for positions you’re qualified for.
3. Who do I need in my network? As you’re searching for new opportunities, be careful about who you share this information with. Many of us feel weird about not letting our current employer know that we’re looking, but that’s completely normal at first. So, tap into professional relationships with people you trust who can help you connect with new opportunities you’ll be excited about exploring. Share your resume and LinkedIn profile so they can be sharing it with others as well. As you firm up your network, put together a short list of trusted references. Eventually, you’ll want to have your current employer as a reference if possible, so start thinking about how and when to have that conversation. If the likelihood of layoffs is strong, you’ll probably get the hint that others in your company are looking as well. As you feel safe to inquire, ask what others are doing to prepare. Both peers and supervisors at your current job may be the gatekeepers to your next opportunity. If they are getting hired somewhere else, they could be your foot in the door, so don’t burn those bridges.
4. Is it time for a big change? What are you hoping new opportunities bring to your career? If you’re hoping for a complete change, what would that look like and require of you? Reach out to people who are doing work you think you want to do and those at companies you would love to work for. Find out how they got into those roles. If you’re hoping for a major promotion, move to another industry, or a complete career change all together, what will you need to make this possible? Many people see moments like this as an opportunity to seek more education. For some this could mean another degree, but consider upskilling with online certifications in specific areas that these new opportunities may require. If you think it’s time to move to an entrepreneurial role, investigate that market and what it would take to launch. Layout a formal business plan to show banks or investors, and have others you trust offer feedback.
5. What can I do now to reduce the impact of a layoff on my personal finances? If you feel that the chances of losing your current job are strong, make a plan now for saving as much money as possible while you still have a steady income. Building your savings and creating an emergency fund takes discipline and intentionality. Consider cutting unnecessary expenses and subscriptions for now until you feel more secure in your financial future. At its most basic level, this sort of planning requires a “needs vs. wants” mentality. Avoid spending money on things you don’t need for a while, and try to eliminate using credit cards all together during this time. If you lost your job this week, what would be your plan for paying your bills? How would you secure health insurance? What kind of part-time or full-time work could and would you be willing to do in the interim while looking for that next role that aligns with your career goals. Simply having a plan can reduce stress, allowing you to navigate your next steps with clarity and confidence.
Hopefully, you will never face losing your current job, but answering these simple questions along with developing a plan for the dreaded “what if” can greatly reduce the strain on your mental health and keep you on track for reaching your career goals. Let us know if you’d like to schedule a free consult with a professional career coach to help you work through each of these questions to assemble a layoff ready plan. The Halos Counseling Team is here to support you through all seasons of life.