Protecting Your Job and Preparing for Job Loss: A Guide
The recent job cuts at major companies like Facebook, Google, NBC News, Gannett, 3M, Disney, and FedEx, are cause for concern. The widespread layoffs affecting tens of thousands of employees from various industries have raised two important questions: "Am I next?" and "What should I do to prepare?"
According to experts in the fields of personal technology, career management, finance, and employment law, there are several steps you can take to protect your job security and prepare for the worst.
Assessing Your Employer's Health and Doing a Career Checkup
First, it's important to keep a close eye on the health of your employer. Attend staff meetings and ask about the company's financial goals. If the company is publicly traded, this information is readily available.
Additionally, it's a good idea to regularly do a career checkup while you are still employed. This will give you a better idea of your job security and allow you to make any necessary preparations in advance.
"Before you panic and worry about losing your job, assess the health of your company," suggests Scott Dobroski, a career expert at Indeed, a job search website. "If the company is struggling financially, it's best to start preparing for the worst."
Dobroski recommends conducting an annual career checkup, much like you would have a yearly physical exam with a doctor. Update your resume to reflect new skills and projects, and have a generic cover letter ready. He also advises networking with people beyond your usual social and professional circle, as the strength of weak ties can often lead to new opportunities.
Reach out to individuals working in industries or at companies you are interested in and maintain contact with them through platforms such as LinkedIn. However, Dobroski warns to be mindful when speaking with competitors.
"Always be transparent in your actions and conduct yourself in a manner that would be acceptable to your boss and colleagues," he advises.
Maintaining personal relationships with colleagues in a remote work environment can be challenging, especially if you haven't met in person. If you have built a trusted relationship with someone, consider asking for their personal email and phone number. This way, in case of sudden layoffs, you can reach out for support or a reference.
Many companies provide professional development budgets, take advantage of these to build skills that will help you secure your next job. According to Handshake, a job search platform for students and early-career workers, some of the in-demand skills employers are searching for include Microsoft Excel, Python, Java, Adobe Illustrator, Canva, machine learning, and Adobe InDesign. The number of Handshake job openings mentioning TikTok has also increased by nearly 17 times since 2019.
Save any emails praising your work and testifying to your abilities. These can serve as a reminder of your strengths and accomplishments when applying for jobs in the future, and remind you that losing a job is not always a reflection of your skills and abilities.
Building In-Demand Skills and Separating Your Personal and Work Data
It's crucial to keep your personal and professional data separate and to have a plan in place to retain important information. With the widespread adoption of remote work during the pandemic, many individuals have begun to blur the lines between their work and personal lives, using their work devices for both purposes.
However, using a work computer for personal use can expose your private data to significant risks, warns Brian Fitzpatrick, the founder of Google's Data Liberation Front, a team dedicated to helping people manage their Google data. Any activities performed on company equipment can be monitored and accessed by your employer, and in the event of a legal dispute, all your data, including photos, browsing history, and personal messages, may become vulnerable during the discovery process.
Mr. Fitzpatrick suggests keeping personal and work data separate and making a plan to retain important information. This is important because blending work and personal lives, especially during the pandemic-induced shift to remote work, can pose a risk to private data in the event of a layoff.
"Never put your personal data in your work account," he advises. "You don't own that data if it goes to your company account." To mitigate this risk, it's best to use personal devices for personal matters. However, if personal activities must be conducted on work devices, creating a separate profile in a web browser can help keep personal and work data separate.
Preparing Your Finances for a Potential Layoff
Having an emergency savings account is crucial in case of a layoff, as it can provide additional support alongside severance pay and unemployment insurance. If you don't already have one, now is a good time to start, as many banks are offering savings account interest rates of 3% or more.
If you're unable to save, taking on debt may become necessary if you stop receiving a paycheck. However, applying for loans while you still have a steady income is the best time to do so. Homeowners can consider opening a home equity line of credit, while those who aren't can opt for a low-interest credit card.
Avoiding Risks with Personal Data and Borrowing from Your 401(k) Plan
Borrowing from a workplace 401(k) plan is common, but keep in mind that if you leave or lose your job, you may have to repay the debt quickly. Fidelity and Vanguard, who administer these plans, state that you may have as little as 30 days to repay the debt, with a maximum of 90 days. If you don't repay in time, the balance may become a distribution, potentially resulting in a tax bill and a 10% penalty. Check your plan's details for more information on the terms of the loan. If possible, try to pay off the debt before a potential layoff.
If your employer offers pretax health care flexible spending accounts or dependent care accounts, consider seeking reimbursements throughout the year. This will prevent the chaos of job loss and the need to file a large pile of claims at once. However, even if you don't, you should still have some time after termination to file claims before forfeiting the money in the accounts. On average, employers allow 90 days to file these claims, but some may be more strict, so inquire ahead of time.
Employees who receive compensation through stock or options should also plan ahead. Start by checking the vesting schedule and post-termination exercise period. You typically have 95 days or less after losing your job to exercise stock options, according to Carta. Make sure your bank account information with a service like Carta is updated so you can quickly transfer money to buy stock options if needed after a layoff.
Understand your Legal Options
If you suspect that your layoff is a result of illegal practices by your employer, it's important to gather evidence to support your legal claim.
Employment lawyers suggest seeking feedback on your performance from your employer and keeping a record of it. For example, you can save emails that praise your work and forward them to a personal email address, as long as they don't contain any confidential information. Documenting any unethical workplace behavior as it happens can also be beneficial in the future. It's wise to consult with a lawyer to make sure you're not breaking any laws while collecting evidence and to determine if you should file a formal complaint with your employer.
Jennifer Liu, the managing partner at Liu Peterson-Fisher law firm, suggests keeping a time-stamped chronology of your work experiences. You can do this by sending yourself emails that document the events. Talking to trustworthy individuals about what's happening can also provide credibility to your case if a post-layoff dispute arises. "Having multiple people speak about the situation is more credible than just one person's testimony," Liu advises.
Prepare for the Layoff Discussion
Layoffs can happen unexpectedly and you may suddenly be in a virtual or face-to-face meeting with someone who is as uneasy as you are. Give them time to process their emotions and fill any awkward silence to ease the tension.
Wendi S. Lazar, a partner at Outten & Golden in New York City, suggests that when faced with a layoff, it is best to listen to what is being said. "People often say they don't remember what was said to them," she says. "Make sure to have a pen and paper ready to take notes."
Ask why you were let go. Your employer may say that the layoff was due to company-wide downsizing and not related to performance, but this could contradict any future legal claims.
According to Lisa J. Banks, a partner at Katz Banks Kumin in Washington, it is important to hold back from making any agreements, signing anything, or engaging in a debate over the termination during the layoff discussion. This could be seen as an admission of guilt.
Ms. Banks emphasizes the importance of documenting the conversation as much as possible. "Documentation is key, both in good and bad times," she says.
