The official unemployment rate is about 5.0 and labor department experts expect it to continue to rise. So, the likelihood of you joining the ranks of the unemployed is very good. In this unstable economic climate more and more workers, in almost every industry, are facing a growing number of plant closings and corporate downsizings. When I began my career in hospital pharmacy, I believed what career counselors told me about always having a job. They told me the healthcare industry was solid. I would never have to face involuntary unemployment. But they couldn’t foresee an increased number of pharmacy schools opening across the country and the resultant glut of new pharmacists looking for jobs. Today, wide-spread hospitals closing are occurring in all our major metropolitan cities. It is estimated that by 2020, one in three hospitals will close or reorganize into an entirely different type of health care service provider. Twice in the past ten years I’ve had to turn in my lab jacket and ID badge. I was forced back into the job market competing with other job applicants much younger, willing to work any shift and for less money. There goes job security. How well have you planned for this life changing possibility? It may not be something in your immediate future. But remember, no job is 100% secure. It does not matter how good you are at your job or how hard you work. Don’t get lulled into a false sense of security.
Having a survival plan in place is a good idea.
“Hope for the best, prepare for the worst” is my advice to you. Conversations with professional job placement experts after my first layoff prepared me to better handle the second. These are the steps I followed that shortened the period between jobs and made the whole experience easier to handle.
STEP ONE: HOLD ON TO YOUR JOB
Do what you can to hold on to your current job. Make sure you are demonstrating your true worth. Do the best job possible. And make sure your good work quality is being documented.
STEP TWO: DON’T TAKE IT PERSONALLY
Unfortunately, no matter how great an employee you are, you may be forced to join the ranks of the unemployed. Just remember, it is not your fault. Don’t waste time worrying or feeling sorry for yourself. Instead, work on a strategy.
STEP THREE: PUT TOGETHER AN EMERGENCY FUND
Cut back on unnecessary spending and start building an emergency fund. Your emergency fund should total at least six months of all your basic monthly expenses. The more money you have to fall back on, the greater your peace of mind. Look into what type of severance package the company will offer. It would be a good idea to get a credit card that you can use for emergency expenses. It will be much more difficult to qualify for a credit card after you have been laid off. On credit cards make the minimum payments until your employment situation stabilizes.
STEP FOUR: CHECK YOUR HEALTH BENEFITS
If your job goes, your health benefits will leave too. Take advantage of them while you still have them. If you know or suspect your job is at risk, make sure you are up-to-date on medical and dental exams and any procedures you may need but have been putting off. When your medical coverage ends, you may qualify for COBRA. It allows the continuation of group medical coverage after your employment is terminated, It may be costly. So budget for the expense so your coverage isn’t interrupted.
STEP FIVE: CHECK YOUR ACCRUED BENEFITS
Find out what benefits you have accrued and not yet used. How much vacation or sick time, whether in hours or days, have you accrued. Check the policy regarding how it is treated when someone involuntarily leaves the company. Some employers will give you a portion of the vacation you have accrued. If the policy does not allow for payment, you can use the vacation time for job interviewing and other job related activities.
STEP SIX: CHECK YOUR PENSION AND 401K
If your company is about to go under, check the status of your pension and/or 401K. How invested are you in the company’s stock. Maybe it’s time to make a change while there is still time. Consider re-allocating part or all of your 401K if it is invested 100% in your employer’s stock. If you are part of a profit sharing plan that is invested 100% in company stock, can you diversify with investments in other companies’ stock?
STEP SEVEN: CHECK UNEMPLOYMENT COMPENSATION
Make sure you apply for unemployment benefits. You can find out how to file in your state at CareerOneStop.org Take advantage of online filing if it’s available in your state. Find out how much you are entitled to in your state. I was shocked to find out it was such a small amount compared to my regular paycheck. It is only going to be a fraction of what you were earning. You may even be required to regularly report to an assigned counselor at the unemployment office. You must provide proof that you have been actively looking for employment. You can only receive these benefits for a specified number of weeks. And these benefits are taxable.
STEP EIGHT: UPDATE YOUR RESUME
When was the last time you undated your resume? If it has been a while, there is probably outdated information on it and it needs to be refreshed with an updated look. What can you add to your resume to make it more relevant in today’s marketplace?
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