A layoff can be a profound shock, especially when it comes as a surprise. The emotional turmoil that follows can be compounded by financial concerns and health issues, leading to feelings of grief and a loss of identity. With so many uncertainties looming, planning for the future can seem daunting. Career coach Octavia Goredema, author of the book Prep, Push, Pivot: Essential Career Strategies for Underrepresented Women, emphasizes the importance of taking a moment to pause and process your emotions. Remember, a layoff is a business issue, not a reflection of your personal worth. This moment does not define you; instead, it opens the door to new opportunities.
Before diving into your next steps, it’s crucial to take your time handling the exit process with your employer. Start by reviewing your exit paperwork thoroughly. Depending on your role, you may receive documents related to vacation payouts, benefits information, or severance packages. Goredema advises that you may encounter agreements such as noncompete or nondisclosure clauses that you haven't seen before, so read everything carefully.
If you feel rushed to sign, don’t hesitate to ask for more time. Goredema cautions against signing anything hastily, as doing so binds you to the terms without fully understanding their implications. In fact, she recounts a case where a client regretted signing too quickly, missing out on negotiating better health care benefits. Always ask questions and explore your options.
Additionally, if you suspect wrongful termination, seek legal advice from an employment attorney. An attorney can provide crucial insights into your rights and whether any violations occurred during your layoff.
One of the first actions to take after a layoff is to apply for unemployment insurance. This state-run program can provide you with a weekly income based on your previous earnings, helping to enhance your financial stability. Goredema highlights that eligibility for unemployment benefits typically requires that you lost your job through no fault of your own. Each state manages its own program, so check what is available in your state, as benefits can vary significantly.
Beyond unemployment benefits, consider other resources such as food assistance or free job training programs. Utilizing a benefit finder can help you identify what additional support you may qualify for.
If you relied on your employer for health insurance, you could continue with your plan under the Consolidated Omnibus Budget Reconciliation Act (COBRA). However, be mindful that this option can be expensive, as you may need to cover the full premium plus an administrative fee. Alternatively, explore the Health Insurance Marketplace in your state for potentially more affordable coverage options. Programs like Medicaid may also provide low-cost or free health care for eligible individuals.
As you begin to think about your next steps, take time to reflect on what you want from your next job. Consider what aspects of your previous role you enjoyed and what you didn’t. What does your ideal job look like? Think about factors like compensation, company size, location, and job duties. Goredema notes that these reflections can help narrow your focus and guide your job search.
It’s also wise to estimate how long it may take to secure your next position. Based on your previous job search experience, adjust your expectations with a buffer of one to two months, especially if you’re in a competitive industry. This foresight can inform your budgeting and contingency planning.
Using your projected job search timeline, develop a monthly budget. If you anticipate it might take six months to find a new job, allocate your savings accordingly, factoring in emergency funds, severance pay, and unemployment benefits. This budgeting strategy will help you maintain financial stability while you search for new opportunities.
It’s essential to have a Plan B in case your job search extends beyond your initial timeline. Goredema suggests exploring alternative income sources, such as gig work, temp jobs, or even opportunities outside your industry. Embrace these options without guilt; they can provide valuable experience and help sustain you financially.
Furthermore, take this time to reassess your career aspirations. Is there a passion project or hobby you’ve wanted to pursue? Goredema recalls a client who transitioned from a career in graphic design to starting a gardening business after multiple layoffs. This change brought him happiness and fulfillment, suggesting that sometimes setbacks can lead to unexpected opportunities.
In summary, while a layoff is undoubtedly challenging, it can also serve as a catalyst for personal and professional growth. By taking deliberate steps to manage your transition, you can emerge stronger and more focused on your next exciting opportunity.
This article was edited by Malaka Gharib, with visual editing by Beck Harlan. We would love to hear from you! Leave us a voicemail at 202-216-9823, or email us at LifeKit@npr.org.
