How to Prepare Yourself for a Layoff & Use Your Break from Work Wisely & Productively  

Young, talented, overachieving female executives never consider the possibility of being unemployed; that is, they find it difficult to visualize that anyone would think they were disposable, especially when contrasted with the less-gifted baseline of the general employment population.  And then, one day, those overachievers have the dreaded conversation that ends with a layoff, preceded by phrasing that’s the professional equivalent of “it’s not you, it’s us.” Now what? After the three steps of denial, anger and depression, one must dust off and move forward, but how?

First things first: if you have not stolen, lied or committed a horrible business error ending in major financial or other repercussions, then it truly isn’t you.  The termination or separation from the employer is likely just a necessary decision due to cultural conflicts, cost-savings issues or re-alignment needs. In any of these cases, the fit was probably not right to begin with, or the career path has run its course.

Re-Group — and Practice Your Hindsight Skills

Think of the change, then, as a crossroads, not a road-block. Yes, it is a “glass half-full” piece of advice, but one based on experience and hindsight.  So, at this point, a terminated/laid-off employee can choose to be bitter and stuck, or take pause and reflect. To achieve the latter, here is a list of 5 things to ask yourself:

• Is the situation a result of something I did or contributed to? If so, what have I learned?
• Did I truly love working for my company/employer, or was it convenient? Did I see a long-term future there?  If I could do it all over, would I still want to work there?
• What aspects of my job/company did I like, and what would I want to change?
• What skill sets would have better served me while working there? Is this the time to secure them?
• What are the three things I wish I could do if I had more time? (Hint: now is the time to try and do them!)

Moving Forward (Productively)

Then, once the shock and horror wear off, you should make sure that you get back on the saddle on a scheduled basis. Many people with generous severance packages take a year off and think the hunt will be productive as soon as they resume. Think again. That is not to say that you don’t deserve a little time off to travel, lounge, organize your home, finances or connections — but don’t vacation with nonproductive activities for long, since you will limit your options as a result.

Instead, think of this time as a re-set. Attend seminars, take classes, join boards, re-connect with old colleagues, earn something new, and stay physically active. It is important to take care of yourself—body/mind/soul—so that you emerge totally new and refreshed, not broken and defeated.

This is also a great time to review all of your expenses and evaluate what cost reductions you can make or negotiate should this situation prolong. For instance, can you:

• Revisit your insurance policies?
• Take an auto safety/maintenance course on line?
• Refinance your home?
• Get your legal documents in order?

These would be all very practical activities to embrace that will serve dual purposes of short- and long- term benefits. If you are fortunate enough to gain re-employment while you are still collecting severance or other compensation, take the double-dipping period to reinvest in yourself. Pay down debt, open a new savings account, buy an investment that will yield returns—whatever it is, use the stipend as a means to better safeguard yourself from potential future setbacks.   

Prepare Sensibly for the Inevitable

If you are not currently unemployed, now is the time to anticipate that you might one day be in that situation, or if you are right now, know that it could recur. What should you do to prepare so that you are in a position to manage your time out of the workforce constructively? Here are 5 tips (learned the hard way!):

• Always negotiate a severance going into a job. No one wants to think that it won’t work out, but such is the situation with marriages as well. Thus, learn what the company policy is, and see if you can add time as part of your package.
• Keep a 6-months savings cushion. This is financial advice given by experts all the time that some people find hard to follow, but you’ll find that with a little money in the bank, time off will be easier, and you won’t make desperate career choices.
• Keep your expenses in check — meaning, live below your needs. Your current salary is not a guarantee of your next salary.
• Always keep a personal home office and email. Too often newly unemployed people find themselves without a mobile device or a computer once the company reclaims theirs. Use your personal email for professional organizations, conference registrations and member correspondence—this will ensure that you have continuity with your business affiliations and stay on their lists.
• Keep your resumé, LinkedIn profile and portfolio/personal website up-to-date. Don’t be caught at square one when the inevitable dreaded day comes. Give yourself a running start by staying on top of your profiles, connections and accomplishments. It can take a month or more to get everything in order, but this time should be spent looking for new work, not getting ready to look for new work.

So whether you are employed or unemployed, consider this time to better position yourself for the future. Don’t get complacent or stuck wherever you are; manage yourself accordingly and prepare for both better and worse times. Change is inevitable, but you can certainly make sure you deal with it in a thoughtful, smart way when it happens.