Jobless rates are soaring. Merck just announced a 7,200 layoff. BestBuy won’t be hiring 10,000 seasonal workers. However you slice it, the current job picture looks bleak. You should never assume you’re safe at your job. Just as you (should) have a plan for your future and a plan for emergencies, you need a plan for the case of a layoff.
1. Get Your Resume Ready
Dust off your old resume and take a look at it with a fresh eye. Add your current job and any new accomplishments. Be sure to have others read your resume; let friends and family take a look and give feedback. If you can afford it, the best option is to hire a professional resume writer. Make sure it is both print ready, and ready to email and post all over the net.
2. Join Professional Networking Sites
LinkedIn is the de facto business networking site. Your LinkedIn profile lists your professional accomplishments, and then allows you to connect with former colleagues, clients and partners, and once you do, you are connected to their connections as well. Not only can you be found on LinkedIn by current and former coworkers, but by people looking for someone with your skill set to fill an open job position in a new company.
There are several other business networking sites, such as: Ryze.com; MeetTheBoss.com is focused on the financial sector; LPN.org is specific to professional Latinos; and Doostang.com
3. Ready Your 401k
If you have less than a specified amount – usually $10,000 – and you leave your job because of voluntary or involuntary reasons, you will be forced to move your retirement dollars. This does not mean you can take the money and run! If you wait and get “cashed out” of your 401k you will not only owe taxes on the whole pot, but also a 10% penalty. To avoid this, open a traditional IRA and roll the 401k money into the new account. These accounts are also aptly named “rollover IRAs.” Many of the big mutual fund companies such as Vanguard and Fidelity can walk you through the process on their websites. If you are confused, contact a Financial Advisor.
If you have a loan on your 401k you need to know the rules about repayment upon termination. Some companies will require you to repay the loan immediately, while others will work with you to create a new repayment schedule. Either way, it’s better to know ahead of time.
4. Beef Up Your Savings
By now everyone should know saving three months’ expenses is the minimum goal. If you are feeling layoffs coming at your company, this is more important than ever. To have a sufficient cushion will make all the difference when the dreaded news comes down. These days you can’t rely on a severance package.
If you don’t have at least a few months’ expenses saved up, and you anticipate layoffs, now is the time to take a serious look at your finances and figure how to make extra cash – stat.
5. Have a Back Up Plan
Visualize yourself without your job, after two months of looking and no bites on your resume. What will you do when your savings run out? Now is the time to think about, and come to terms with, the idea of taking a part-time job at a retail store, or signing up with the local temp agency. These are viable ways to find work to tide you over until the next opportunity presents itself.
No one wants to lose their job. But with a bit of planning and foresight you can prepare yourself for the worst.
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