Preparing For Unemployment
Tips For Workers About to Lose Their Jobs
In today’s economy, no employee is immune from the proverbial “pink slip.” While workers should not walk into their places of employment with a feeling of dread, they should be aware of signs that all may not be well and take appropriate steps if and when their jobs are terminated. This involves preparation for possible unemployment as well as good observational skills in detecting management changes.
Job Termination is Swift and Affects All Levels of Employment
- A full time youth minister at a large Catholic Church is told that her contract has been terminated from one day to the next. She is not permitted to go back to her office.
- Executives at a Fortune 500 company arrive for work and are met by local police. They are individually escorted to their offices to retrieve personal items.
- Factory workers are called to a morning meeting and told that the furniture plant will be closed permanently January 1st. Many have worked there for decades.
- One of the last remaining textile operations in Surry County, NC tells its employees that the mill will close in two weeks and that operations would continue in India.
Job cuts affect all tiers of employment as hundreds of thousands of Americans find themselves without a paycheck and such vital benefits as health care. Few will be able to rollover such necessary benefits to private policies and many cannot afford steep premium increases under the COBRA law.
Planning Ahead Should Be Part of Every Employee’s Long Term Plan
When unemployment strikes, many affected workers experience immediate trauma. Who will pay the bills? Is personal bankruptcy an option? How does one file for unemployment benefits? All workers in every level of employment should have a set plan. Feasible plans begin with early facilitation. Helpful tips include:
- Always have an up-to-date resume on file.
- Network with colleagues, friends, and family.
- If possible, save enough money to cover 6 months of monthly costs such as mortgage or rent payments and utilities.
- Limit spending and payoff credit debts as rapidly as possible.
- Purchase supplemental health and life insurance.
- Don’t leave any personal items at your place of work.
Employees that know that their jobs may shortly be terminated can take additional steps such as enrolling in night courses at local Community Colleges that will retrain in new or similar job fields. Additionally, taking a part time job specifically to save money is a good option. If it appears fairly certain that unemployment will occur in the not to distant future, workers should begin job searching immediately.
Attitude and Determination
When unemployment strikes, it is imperative to maintain a positive attitude and a determination to overcome the obstacles quickly. Develop a list of priorities and create a viable plan to facilitate their success:
- Call all creditors and work out temporary arrangements for lower payments at lower rates of interest.
- Eliminate unnecessary recurring monthly costs such as cable services and club memberships.
- Facilitate garage and lawn sales, open on-line seller accounts, and request 401-k disbursements as “hardship” payments to hold off foreclosure (check with your plan administrator for details).
The point is to be proactive, stay busy, plan ahead, and not give up. Maximize all assets to get through the unemployment period, preferably without damaging your credit and future buying potential. Planning ahead for possible unemployment will ensure that all bills are paid, health care continues, and self esteem remains high.
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