At least once in your career, if not multiple times, you may be fired, furloughed, laid off, or otherwise involuntarily removed from a position. Or, have your salary/wages/hours/bonuses cut back. This may be driven by a (perceived) performance issue, a company-wide financial strain, or even general economic pressure. Regardless of cause, this can have a tremendous impact on you - financially, professionally, and emotionally. As we navigate the safety precautions of COVID-19, many in the service/hospitality industry are struggling to stay in business or remain employed. Having experienced negative impacts to my income in the past, I want to help you if you're going through it now or at least to prepare you for responding to this situation. Plus, I hope to bring some levity to an otherwise solemn topic!
She was laid off for holding this pose for 27 straight minutes during a Zoom meeting.
Disaster Preparedness Kit
Since we all love a good checklist, here are a few items to address before you find yourself in a career setback:
(1) Emergency Fund
Yes, I am harping on an emergency fund again. Build this fund up while times are good so you are insulated from a major unexpected expense - which would include a loss/reduction of income. While it doesn't solve the long-term financial problem, it will buy you time to replace your lost income.
(2) Antenna Up
Most of the time, the writing is on the wall that you will be facing a loss/reduction in pay. Look for telltale signs. If you suspect it's your personal performance, you may consider talking to your leader. As a leader, I can tell you I take it as a positive when an employee comes to me for feedback. If you're concerned about the company's performance, evaluate company decisions like reductions in standard expenses, new cost-saving policies, etc. Of course, all businesses are looking to reduce expenses; but, if the cuts are extreme, it may be indicative of larger fiscal problems. With more universal economic woes, pay attention to your industry's trends. For example, if you work for a home builder, know how the housing industry is doing on a local/regional/national scale.
(3) Be Sharp
The one of the biggest mistakes I've seen people make in their working life is thinking they're set for life. They land a job, don't exhibit much ambition, do mediocre (or worse) work, and assume all is well. False. We always have to be working to improve ourselves. Learning new skills, taking on unique projects, or volunteering for additional responsibilities will not only make you more indispensable to your company, it will make you more attractive to other employers.
(4) Listen To Opportunities
Even if you're perfectly happy with your position/company, keeping an open mind to your career options is always wise. Many of us will get that random call or email from a recruiter at some point. While their potential positions may not be desirable, I highly recommend hearing them out. If it's not of interest, be honest with them and explain why. But here's the kicker - tell them what you are looking for, and ask them to reach out if they have anything come up that matches what you're looking for. They may never call, but what if they do?
(5) Side Hustle
Yes, I know, I critiqued many aspects of the gig economy. But if you're out of work, and you have bills to pay, it's certainly a good temporary option. Just don't let it prevent you from finding a job that aligns with your career goals.
(6) Next Move
If you lose your job, or decide the changes in your existing job will force you to leave, having a path to a new position is critical. Is your resume up to date? Can you reach out to a recruiter? Are you looking on LinkedIn, Indeed, or other job sites? Do you want a similar job or would you like to try out a new industry? All questions you should be prepared to answer well before you need to.
So It Happened To You...
Well, shoot, the first part of this blog is worthless right now! Let's take some immediate actions to get you back on your feet:
(1) Find Replacement Income
The first, and most important, need is replacing the income lost. Filing for unemployment, taking on a side hustle, or hitting the pavement to find the next job are your top priority.
(2) Cutting Expenses
In parallel with the pursuit of income, look to cut expenses wherever possible. While the emergency fund is there to assist, canceling your Netflix and DoorDash accounts would be wise. While I would caution against cuts that will hurt long-term (401k contributions, for example), you may need to do so to stay afloat for the time being. If so, I recommend making up for the lost contributions once your income improves.
(3) Panic, But Not Too Much!
This is a difficult experience, and having some anxiety is perfectly normal. In fact, it could be a positive to help motivate you to take action. However, don't let it consume you! You need to remain poised and focused on the task at hand. Remember the tips I shared in my blog on interviews to help you land the next job.
(4) Future Success
While you may find you need to take a lesser-paying job, or a step back in your career, keep the long-term in mind. As long as you have a heartbeat, you will still have the experiences you did previously, and can always work back to where you were. In fact, you may gain new perspective on your career and find you're much happier! Your definition of professional success may change over time - you may think the bigger paycheck is the cat's meow, only to learn the additional income is not worth the newly-found stress of the job duties.
For those of you out there who are struggling, I truly do want to help however I can. Please feel free to contact me if you want some more specific advice! I started this blog with the hopes of making a difference in people's lives. Whether that's through sound financial/career advice or tacky GIF's, I'm so appreciative of the opportunities I've had to assist those in need. Please continue sharing this blog, subscribing to get weekly reminders, or reaching out directly on the website. Have a great week!
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