No matter how long you've been at a company, being laid off stings. It can make workers feel blindsided and uncertain of their next steps, not to mention the pressure it puts on your finances and emotions. Yet, as layoffs sweep through the tech industry and beyond, this has become a reality for thousands of workers, and cases aren't letting up just yet.
However, while taking a glass-half-full approach may seem difficult at this time, being let go can open up compelling opportunities to those who know how to seize them. And, while layoffs can feel disorientating, there are a number of practical steps you can take to ease the load.
From getting your financial ducks in a row to reflecting on your career strategy, here's our expert-driven list of actions to take after being laid off. But first, what exactly does being laid off mean, and how does it differ from being fired?
Laid Off vs Fired: What’s the Difference?
While being laid off and being fired will both lead to the termination of an individual's employment, the difference between the two terms ultimately depends on who is at fault.
Firings tend to happen when the worker is at fault and can be caused by a number of factors from poor job performance to inappropriate conduct.
Alternatively, layoffs are not based on individual merit, and take place when it is no longer viable for a company to keep hold of an employee. They happen for a number of reasons but tend to be an outcome of cost-cutting measures, or downsizing and restructuring efforts.
What Should You Do When You Get Laid Off?
Here are the 8 things you need to do when you get laid off:
1. Work on your mindset
The emotional toll of being laid off should never be underestimated. Feeling anxious, stressed, and having low self-esteem are all totally normal responses to being let go from a role. And before anything else, it's important to acknowledge these feelings and take a day or so to grieve your past position.
Then, after you feel like you've taken the time you need to come to terms with the situation, it's time to work on your mindset. Being laid off is in no way a reflection of your job performance, your worth ethic, or you as a person. It's an unfortunate consequence of an unstable economy, and even though it might not feel like it right now, it often leads to positive outcomes by giving people the freedom to pursue new opportunities.Â
“You may not be able to control who or what caused your job loss, but you do have power over how you respond to it, and time is of the essence.” – Alex Contes, Co-founder of Review Grower
By looking after your mental health by practicing mindfulness, keeping active, or listening to music you enjoy, while remaining confident about your capabilities, you'll be able to start your journey off on the right foot.
2. Take stock of your financial situation
One of the first things you should do after receiving the pink slip is to assess your finances. If you've been saving for a rainy day, consider how much of your savings you'd be happy to put towards your job search. It's also advised to review your expenses to make sure that you're only spending what you can afford.
“Don't be scared to negotiate the severance payout if you're higher up in the company; you have nothing to lose.” – Pete Chatfield, CEO of House Money Savings
If it's not immediately obvious when you're going to receive your final paycheck, you should also enquire about this with your employer. By having this information at hand, you'll be able to factor this into your budget and it'll be easier to financially plan for the future.
According to Percy Grunwald, a personal finance expert from Compare Banks, now is a good time to check if you're eligible for unemployment benefits too.
“If you have been laid off, you may be eligible for unemployment benefits,” Grunwald tells Tech.co, adding “make sure to file your claim as soon as possible to ensure that you receive the maximum amount of benefits available to you.”
3. Collect all necessary documents
When a company decides to let go of an employee for reasons outside of their control, it's protocol to issue them with a layoff letter. This letter provides written notice of the company's decision, explains the reasoning behind it, and details what the next steps will be.
If you haven't already been handed a layoff letter, you should reach out to your employer for a copy. Not only does it provide useful information about employee benefits, severance pay, and unused vacation time, but it's also proof that you were let go through no fault of your own.
“Ask for clarification on anything you are unsure of and make sure you have copies of all relevant paperwork.” – Gene Caballero, CEO of GreenPal
While you're at it, we'd also recommend asking your boss, line manager, or a member of the HR team for a letter of recommendation. Having a document that evidences your skills, achievements, and professional attributes can be very valuable and will serve you well as you seek new opportunities in the future.
4. Enquire about health insurance
If your company covers your health insurance, you should iron out the details with your employer straight away. But try not to panic — most companies will cover your insurance until the end of the month at a minimum, giving you some breathing room to find an alternative solution.
A popular course of action is the Consolidated Omnibus Budget Reconciliation Act, or COBRA, a form of coverage that allows employees to continue their company-provided health insurance after being laid off. COBRA lets you keep the same services for up to 18 months but is costlier than other alternatives like the Affordable Care Act (ACA).
5. Review your 401(K) plan
If you had a 401(k) with your previous employer, you may be wondering what will happen to the pension account now.
The good news is that every cent you've put into your 401(k) is yours. You'll also be able to keep your employer contributions if you're vested, or in other words, if you've fulfilled the time requirements set by your employer.
In terms of next steps, there are a number of different paths you can take. If you've accumulated over $5,000, you should be able to keep your funds with your former employer, saving you the hassle of making any immediate changes. You can also money withdraw from your account or roll it onto another plan if you've found work elsewhere.
6. Reflect on your next steps
If you've been let go from a position you really loved, moving on can be difficult. However, layoffs give individuals the space and time to contemplate where they'd like to go moving forwards, which can be an unexpected upside to the situation.
Did you feel fulfilled in your previous role? Are you passionate about the industry you operate in? Should you seek out opportunities with better pay? Are you seeking a healthier work-life balance? These are all questions you should be asking yourself before panic applying for similar positions.
Leilani Rose the CEO of BETR Consulting, a firm that helps individuals land their dream jobs agrees. “Look at this as an opportunity to redefine yourself professionally and go after what you really want,” she tells us. “Maybe that means the next level of seniority, a specific company you've always wanted to work for, or shifting into a new industry.”
7. Embark on your job search
After your goals are clearly in sight, it's time to start applying. It can be difficult to know where to begin with the job search, especially if you've been out of the game for a while. However, taking stock of your CV and crafting a well-written and versatile cover letter is a great place to start.
If you don't already, it's also important to take advantage of career networks like LinkedIn. According to Leilani Rose, forking out for the platform's Premium service will be worth it. She also recommends asking prospective employers for their salary range up front, to save you from wasting precious “time and energy”.
“Depending on which state you live in, these gigs will most likely reduce the amount of unemployment you can receive. Instead, take advantage of the extra spare time and devote it to conducting thorough, consistent job searches.” – Jake Hill, CEO of DebtHammerÂ
While keeping yourself open to opportunities is important, Jake Hill, CEO of the financial publication DebtHammer explains laid-off workers should think twice before taking on side jobs. “They may seem like a great way to get ahead when money is tight, but they can actually cost you,” Hill tells us.
8. Build a job-hunting schedule
As layoffs disrupt almost every industry, the job market has become increasingly tough for white-collar professionals. This means that firing out a couple of applications a week probably won't be enough to secure you a top-tier position.
“When job hunting, create a schedule to stay on track. Find jobs that interest you, print out their descriptions, and highlight keywords to tailor your resume and cover letter later.” – Chelsea Ashbrook, CEO of TheFlexibleWorker
To stop your attempts from falling by the wayside, we recommend creating a dedicated job-hunting schedule (and sticking to it).
This schedule could include the number of jobs you want to apply for daily or weekly, the number of hours you're happy to dedicate to the process each day, and how much time you'd like to allocate to other activities like CV updates and networking.
Sticking to the schedule may seem tedious, but it's the best way to keep your search on track while helping you deal with the lack of routine that can result from being laid off.
Looking to The Future
It's also important not to lose hope. Despite the recent spate of layoffs, candidates still retain most of the power in the labor market. This means that while it's necessary to be realistic and financially responsible, try not to let the pressure stop you from going after what you really want.