Notice: Trying to access array offset on value of type bool in /home2/sccwebfolio/public_html/theusatwork.com/wp-content/themes/Avada/includes/lib/inc/class-fusion-images.php on line 211

Notice: Trying to access array offset on value of type bool in /home2/sccwebfolio/public_html/theusatwork.com/wp-content/themes/Avada/includes/lib/inc/class-fusion-images.php on line 211

Notice: Trying to access array offset on value of type bool in /home2/sccwebfolio/public_html/theusatwork.com/wp-content/themes/Avada/includes/lib/inc/class-fusion-images.php on line 211

by

“Unbelievable! you exclaim. “Thirteen years of my life, and they let me go like it was nothing!

It happened to me… twice. It has happened to hundreds of thousands more. It is not likely to stop happening anytime soon either. Right now the world’s economy is in a state of flux; it has been for about the last thirty years as we’re switching to an information-based economy.

SC&C Layoff StressMonster.com reminds us: Losing your job can be disorienting and difficult, but you have the power to take action. Yes, the layoff is the end of one chapter in your working life, meaning you need to build yourself back up and find that new beginning.

The way the world works is changing. It is more automated for manufacturing, which requires fewer employees; it is more focused on results and less on business suits, for those traditionally found in offices. Businesses by the score are doing away with traditional offices and letting people work from home. It is saving them billions in terms of building rent, heating, air conditioning, lighting, grass cutting, and parking lot maintenance.

One colleague of mine is pulling down six figures by working from home all the time except for periodic two-week excursions to branch offices all over the world where he deploys software, rolls out systems, and trains employees. It takes a couple of hours a day to do his job, and the rest of the time is spent however he wishes.

Frequent teleconferences keep him apprised of what is happening in the head office. He lives dozens of miles from the nearest major city and does everything by the Internet. The truth is that he spends more time fishing in his boat on the lake than he does sitting in front of his computer doing work for the company. And yet they’re still getting full value because his knowledge is available to them any time.

What’s Happening Now

The world of business is downsizing. They maintain less and less staff and don’t need to pay for benefits like health care, profit sharing, retirement plans, and no longer need to make an employer’s contribution to the local unemployment plan. They save on accounting by eliminating the need to withhold taxes and track contributions for the year. They buy the work they need on a one-off basis.

They can hire the people they “let go” as independent consultants and pay them as much as they were receiving before. They’re still saving money because they don’t have to pay for all the employee benefits.

How about Your Company?

SC&C Preparing for a layoffIf you foresee layoffs in your company, even if you’re not sure that you’re on the chopping block, start preparing. Pay off all your high-interest debt, like credit cards, while you’re still employed. Prepare a budget so you can study where your cash is going. You don’t want to be leaking money on premium cable TV programming packages when you don’t have an income.

Start building a cash reserve. If you can get three to six months’ worth of income ahead you should be able to weather the storm.

If you’re friendly with your direct supervisor ask them for an opinion about the status of your job. If they don’t say: “Absolutely! You’re my best employee. There’s no way I would lose you”, then it’s time to start putting out some feelers. Check and see if anybody is hiring people with your skills. It’s much easier to get a job if you have a job.

SC&C being positive during layoffDon’t Give Up

When people suspect the layoff is coming it’s very easy for office morale to crash. People worried about their livelihood and thinking it’s simply not worth it to put in the effort might be signing their own termination notice. If you keep a positive attitude and do your work well when others around you are just putting in their days until they’re laid off, you’ll stand head and shoulders above the crowd. This could lead you to being put on the “Keep List.

What If There Are No Jobs?

More and more people are starting their own businesses where they can provide information as consultants. Small companies have less access to what we call “Business Intelligence,” and if they can hire a consultant with years, or even decades of experience in high-power business, it can really push their company ahead. They can gain a huge advantage over their competitors.

Susan Bryant, Monster Contributing Writer says, “If you’re a parent, you know how your baby changed your life in ways you never anticipated. You may have envisioned parenthood one way, only to learn how different reality can be. The same principle applies to your startup. Your new ‘baby’ needs constant attention and will keep you up at night. But with your commitment, time and energy, it will grow and hopefully make you proud.

Just remember, as an independent, to price your services accordingly; don’t be anxious to massively undercut your competition. If others are charging more for their services it’s because they’re planning for the future – for when they don’t have a contract and some income. Be competitive, not cutthroat.

When It Happens

Typically you’re not entitled to severance pay. If you do have an agreement it is probably for one week’s pay for every full year of work, and pro rata for any portions thereof. About nine and a half years of service translates to nine and a half weeks of pay. Check your company handbook if you have one. You are entitled to all the vacation pay that’s due you. If you have any accumulated sick days, they’re usually paid out as part of your severance package and treated as a paycheck on which you shall have to pay tax.

Generally speaking, you can negotiate continued personal health insurance coverage under the company plan for a few months; if you have an agreement it’s usually for a fixed period. You can negotiate with them to extend that if you’re parting on good terms. When that runs out, don’t forget about COBRA (usually must be started within 60 days of termination), individual health insurance, Medicaid, and the State Children’s Health Insurance Program.

Also, 401k plans can be rolled over into a new 401k with your next employer, if you have one, or converted to an IRA. If you have a 401k loan from your employer it must be repaid within 30 to 60 days of your layoff. Otherwise it will be deducted from your 401k and treated as a withdrawal requiring that you pay 10 percent tax on it.

How You Deal with It

The difference is that you are now responsible for putting money away for your own retirement; you have to learn to invest for your own future. You must build and maintain a financial cushion to get you through the lean periods when there’s little work.

Very few people are likely to retire with a pension from their company anymore. If you’re one of them, congratulations. If you’re not, at least now you know what to do to prepare.

Stewart, Cooper & Coon has helped many clients during the difficult time of a layoff. Submit your resume today for a free evaluation and learn more about how SC&C can manage your job search.