As you are driving off to work, you leave your home and the worries of home. You are apprehensive about finances and other day to day problems. At the same time you are not happy on your way to office. Something seems a bit off in your mind, a kind of gut feeling you have.
What can it be? At the back of your mind you are feeling uneasy.
While you are not too kicked about another stressful day at work, at least you have a job to go to, and a regular – and welcome – paycheck that takes care of a large chunk of the bills and outgoings.
You try to shake off the feeling of gloom and doom. But there is a niggling doubt in your mind. Did your good friend not suddenly get the pink slip?
But this does not stop the shiver of fear you that get. Being without a job is not an option. You simply can’t do without the paycheck.
The stress levels rise as you try to console yourself that this not going to happen to you.
Why should it?
But the dread is there and you really don’t know if today will be the day that your worst fears will be realized.
Instead of looking forward to getting time off from work, you are only swamped with worries as to how you will make ends meet if it really does happen.
After all, time off from work is only welcome when you know that there is work to go back, even if you do bitch about your busy schedule and often wish for some time off.
What will you do if that happens to you?
Instead of worrying and increasing your stress levels, is it not better to be prepared if this really happens and explore the possibilities?
Having a Plan B in place is always better.
The first thing to do is to look for warning signs.
What Are The Early Warning Signs Of An Impending Layoff?
You like to go to office, complete your work and go home – there is enough to keep you busy in both places. You really don’t like to indulge in office politics or spend time gossiping.
In any case, you don’t have time on your hands.
What if you suddenly are not as busy as you used to be?
If you have always been swamped with work and the work is tapering off, initially you may be happy with a reduced work load. But this is actually a red flag.
The fact that your work has decreased means that company may be going through a downturn.
You hear chatter.
While you do not mix too much with office staff, you hear rumors about things happening. People are getting transferred or there is a possibility of pay cuts.
There are seemingly important people coming in groups and there are many meetings. If there are unexpected meetings between department and company heads and outsiders – and these are not usual sales or marketing conferences – there may be a merger or acquisition on the horizon.
You hear words like reorganization, downsizing, restructuring, streamlining, off-shoring, cost-cutting, rebalancing and other words are bandied about.
If you feel unsettled as do others, you can be sure that you are picking up signs that something is happening.
Don’t just live in dread – do something about it. Proactive steps always help. When you are actually doing something, you will also quell that unsettled feeling and be relieved that you are taking steps to find out more and have a plan in place instead of being taken by surprise.
Some Of The Signs Signaling Possible Job Cuts
With companies and stores shutting down left, right and center, you may well wonder if your company is next and if you may be laid off.
When any company or business shuts, people are jobless. If you watch out for things that signal work problems you will be mentally and financially prepared.
Here are some signs of impending layoffs:
• No jobs available on a job list that was current till recently – your company probably has an internal job-list either online or on the notice board. If there were vacancies that were expected to be filled, but weren’t, and the job list has disappeared, it is a sign of reorganization or layoffs.
• Higher echelon executives leaving – when junior bosses are in talks and meetings or are simply laid off, the signs are clear that the company is restructuring or closing down. In more reorganizations, some employees are shown the door.
• Many closed door meetings and conferences – if there are an unusually large number of closed door meetings and you don’t know what is happening, it should be a definite red flag, particularly when combined with other signals.
• The company’s is not in good financial health – there is a freeze on hiring, payments are not happening on time and the company is beset by creditors, you should be wary.
• Growth is stagnant – many industries go through cyclical downturns, but if growth is not happening along projected lines and this continues, the company may be on the verge of downsizing or shutting down.
• There is a possibility of a merger or acquisition – it is not necessary that the company will shut down completely, but if its merged with another or acquired by a larger corporation, you can bet that some jobs will be lost thanks to restructuring.
• There are high level consultants who come in and want financial and other details of the company to see if they can help – when the cavalry is called in to troubleshoot, you should take it as a warning sign that things are not going well.
• Cost cutting on even petty expenses – all businesses have some petty cash on hand for small expenses, When this money dries up and is not replenished you should take it as a sign that something is serious.
• The industry that your company works in is experiencing a downturn – there are many sunshine sectors that seem to be going up. At the same time there are many industries that experience significant downturns (finance, auto, housing, brick and mortar stores, entertainment hubs, restaurants and food places for example) and whether your company is a small player or a big one, it may not survive.
• The shares of the company (if it is publicly listed) are lower priced – for publicly listed companies check the high and low yearly prices of the shares. Listen to the business news once in a while at least and hear the chatter. You will learn how the company is actually doing.
• There is talk of outsourcing manufacturing or work – when labor of any kind is outsourced to a cheaper destination or something that was earlier done in-house is now outsourced, it is a cost-cutting exercise. It is entirely possible that your job may be at risk.
• Your company is shifting to a smaller or cheaper office – if it is simply not a question of higher rent, it means that the company is not making enough money. And if it cannot afford the rent or other outgoings, can it afford to keep you?
• Constant repetitive phone calls from creditors – this may happen in smaller offices and if there are too many unpaid bills or phone calls or even personal visits from creditors and bill collectors and there is no money to pay them, this should definitely raise your hackles.
• The annual review is due – but this is postponed indefinitely. If the company is planning layoffs, it obviously does not want to increase its outgoings.
• You are not getting enough or more work.
These may be small signs, but keeping your ears to the ground will stand you in good stead and help prepare you better for a potential layoff.
How Can You Find Out More About The Financial Health Of The Company?
While you can ask around – and you should try that out, though discreetly – you can also find out for yourself. The process is different for a public limited company that is listed on the stock exchange and a privately-held one.
For a private company you really need to pay attention to what is happening around you and keep your eyes and ears open.
While you do that, you can also ask your co-workers in sales and marketing how work is going and if they are able to meet their targets regularly. You can learn a lot from this kind of conversation because they may well tell you if there is a business slow-down.
Don’t forget to ask your friends and colleagues in accounting and finance if all is well and if the company is doing okay.
If your company has stock or inventory you can also ask how fast it is being replenished and how it is moving. When there is a slow-down there may be a great deal of inventory that is not moving.
In case you are really worried, there is really no harm in asking your immediate boss about the financial health of the company.
You can also check the monthly or quarterly summaries of the company’s performance if you have access to them.
If the company is in financial distress you will notice that there are budget cut-backs, but if the company is flush there may be new hires and expansion.
In case there is an announcement of perks and bonuses being reduced, you should understand that the company is facing financial problems.
If bosses higher up the food chain are busy in too many meetings or your immediate boss, who has always been accessible, suddenly seems too busy, you will get the feeling that something is amiss.
If there are many hush-hush meetings with corporate heads or even outsiders, you should wonder if there is some restructuring or reorganization round the corner or even a sell-out or merger that may impact your job.
You do need to put two and two together if there are signs of something happening that does not bode well for you. And don’t ignore your gut feeling.
If you need to find out about the financial health of a publicly held company, you can do most of the above, but also use your head and do some investigation.
Accounts and balance-sheets of a public company are usually listed and often available online.
You don’t have to spend hours listening to business news channels, but simply run a search for video and podcasts by analysts regarding the company you work for. And then listen to what they have to say. You can even do this on your commute to and from work from your phone.
You will usually be able to hear their recommendations as well – if the stock is a buy for investment, then you will be reassured that the company should do well. If the recommendation is to sell or short the stock, then the company is experiencing a downturn.
You can check online, and financial sites will also give you a great deal of information. Here you will also come to know if the sector is facing a slump (which would impact the company’s earning potential and stock price).
If you find balance sheets and other information difficult to read and interpret you can ask for help from friends and colleagues who can help you with a summary of the findings. After all, reading and understanding a balance sheet and going through the fine print and technical terms is not everyone’s cup of
How Can You Financially And Emotionally Prepare For A Possible Layoff?
When you depend on your paycheck to meet expenses, the prospect of not having a job is scary. Being financially prepared for such a possibility will help a great deal and reduce the emotional and psychological stress as well.
It’s all about money – and when you don’t have it, it really hurts. If you have not been wise enough to save at least a little bit of money every month, it is not too late to start. Don’t wait for joblessness before you start cutting corners. Budget and stick to your budget as far as possible and keep some aside for a rainy day, too.
Is there any possibility of a severance packet? Some companies offer you a package when you are laid off, though this may not be mandatory. Some companies have a notice period that you have to serve in case you want to leave and this often applies when the company has to lay you off as well. Check company policy regarding this.
Is the company offering help in finding another job? When many large organizations have mass layoffs, they may hire consultants who will help you in the transition period and find new jobs as well or guide you as to how best you can do so.
Some companies also help with emotional and psychological counseling. Don’t think you don’t need it – talking to people helps open your mind to other possibilities as well.
If push comes to shove, knowing the fine details is of great help. Check how much compensation you may be entitled to – are you going to get compensated for unutilized leaves or holiday times, travel and other company expenses you may have coming to or other money that the company owes you.
Will the company give you references? No matter how long you have worked for a company, you should get references and a letter or certificate saying how long you have worked for the company as this will be a big help to get another job.
Make sure your resume is in order. Update your resume, listing any new skills or experience and responsibilities you have accumulated in the course of your work. If you can afford it have a professional redo your resume.
Network online and on the phone. LinkedIn and other social media often list jobs and you can also reach out to other professional groups and to your friends and family and even ex-colleagues — you never know when something will open up. And don’t just look for similar job, but be open to new opportunities related to your expertise and experience.
Are you eligible for unemployment benefits? It is possible that you may be entitled to get benefits from the state during the period that you are unemployed. While this may not be a lot of money, every little bit helps and there is no loss of dignity to get these benefits from the state. It will tide over the monetary crisis you will face.
In case you have credit card debt, seek out ways to reduce your payments. You can consider either balance transfer cards or get a loan from a credit card consolidation company at a lower interest rate, reducing your outgoings.
While you may have your finances in order and have some money tucked away if you have saved for a rainy day, the actual emotional and psychological impact of a job loss is a different matter.
If only a few people have been laid off and you are one of them, you may be wracked with guilt. Did you do enough to stay on the job? Were you not simply good enough that the company could not keep you? You may well feel grief, helplessness and despair apart from guilt.
You are not alone. Research shows that job loss can result in anxiety, loss of self-esteem, depression and even impact physical health in the form of headaches, backaches, tummy disorders, difficulty sleeping and more.
After all your job gives you a daily routine, gives your day structure, improves your self-confidence, gives you a sense of self-worth and makes you feel like a contributing member of society. When you lose your job, all these aspects are affected. It also keeps you very busy.
What can you do to get over these feelings?
While it would easy to wallow in guilt and self-blame it is not really productive to do so. You can take a couple of days as a time-off, but more than that will only cause more damage to your self-worth and confidence. It will also show up as a gap in your resume.
Here are some things you can do to get going:
Decide that you need to have a structure to your days. If you are not working, you will have a lot of free time, so do something constructive. Apart from a job search and sending resumes and networking, take this as an opportunity to do more.
If you have been putting off cleaning or other chores, now is the time to get to them. Don’t procrastinate. Cleaning and clearing physically also helps calm you down and de-clutter your mind. It can enable you to get rid of emotional baggage as well.
Make a routine and start going to the gym or doing some regular exercise, particularly if you have not been doing so while working.
Eat healthier instead of relying on pre-cooked or pre-frozen meals that may have been part of your life.
Consider doing a short course or even an online course to sharpen your skills and add to your resume. Or you can follow your passion and look for short-term gigs online that will help keep busy and also be of financial help.
Keep a positive attitude and treat each day as a new one with a fresh opportunity.
While you are busy looking for another job, it is also helpful to have some perspective. If you feel it is time for a change, look for opportunities in other fields.
You never know – losing a job may be the best thing that has happened to you. You will get other offers and this phase is only temporary. Don’t forget every cloud has a silver lining.
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