What to do after a layoff, from dealing with your 401(k) and health insurance to negotiating severance

Layoffs can be stressful, but having a plan in place can help.

Getty Images; Jenny Chang-Rodriguez/BI

Getting laid off can be scary. Knowing what to do when it happens can take away some of the fear — especially as big-name companies cut workers.

In the immediate aftermath of getting let go, you’ll likely be in shock. So, it’s important not to sign any documents your former employer hands you right away and take time to process what has happened.

When you’re ready to begin your search, it’s best to approach the hunt like, well, a job.

“I wouldn’t dillydally in a market like this because it can take a long time,” Jennifer Schielke, the CEO of the staffing firm Summit Group Solutions, told Business Insider. “Get into the rhythm that you’re used to in the workplace.”

Here are three steps you’ll want to consider taking post-layoff:

Take a moment

Your instinct might be to immediately start searching for a new role. That’s totally understandable. Yet it’s wise to take a little time to process what you’ve gone through and think about your goals, former recruiter Mike Peditto told Business Insider.

“In stressful situations, your panicked reaction is almost never as good as the decision you make after reflection, processing, and intention-setting,” he said. Everyone’s timeout might look different.

“Some people take a month off to travel, and that’s great, but most people don’t have that cushion. Take whatever you can,” he said.

The important thing is to take stock. And, because the search can be lonely, you might consider joining a support group for laid-off workers.

You can also think about how you might invest in yourself. Maybe that means boosting your skills in AI. Even though a sluggish labor market can make it hard to be choosy, it’s worth reflecting on what you really want from your next role.

Focus on logistics

Taking a few key practical steps can make you feel like you’re regaining some control during an uncertain time.

First, make sure you’ve gathered all the severance paperwork your employer gave you. Ask any questions you have. Take your time reviewing it and remember that severance is sometimes negotiable.

Apply for unemployment benefits right away, because those can take a while to process. You may also need to determine how to handle any stock options, think about what to do with your 401(k), and see how long your health insurance or COBRA coverage will last.

Now is also a good time to review your spending and, if you haven’t, make a budget. There are numerous financial survival tips after a layoff, including canceling any unnecessary subscriptions and seeing if you can get price breaks on your phone or internet bills.

Think about your brand

You might get that ick feeling thinking of yourself as a brand, but, like it or not, the reputation you’ve built through your work history and other interactions matters. Now is a good time to revamp your LinkedIn profile, add an “open to work” banner to attract recruiters, and let your connections know about your new status with a layoff message.

If you’ve kept your résumé up-to-date, great. In any case, you’ll probably want to tweak it now. Focus on your skills, accomplishments, and impact, rather than just job titles.

Once you’ve done that, you can start reaching out to your network. Maybe set up some coffees or quick chats with connections, because that’s often far more effective than panic-applying to everything you see.

You can also think about how, in future interviews, you will talk about your layoff. You might even use it as a chance to take bold steps — like negotiating for higher pay or better benefits in your next role.

Have you been through a layoff recently? What made the difference when embarking on a job hunt? Business Insider would like to hear about your experience. Contact this reporter at tparadis@businessinsider.com.

Read the original article on Business Insider

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What to do after a layoff, from dealing with your 401(k) and health insurance to negotiating severance

Take a moment

Focus on logistics

Think about your brand

Future wars may be fought and won in virtual worlds and only proven on the battlefield, Royal Air Force officer says

I’m an older mom of 4. As I think about their future, I wish my kids were closer to our extended family.

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Channels

Recently Played

What to do after a layoff, from dealing with your 401(k) and health insurance to negotiating severance

Take a moment

Focus on logistics

Think about your brand

Future wars may be fought and won in virtual worlds and only proven on the battlefield, Royal Air Force officer says

I’m an older mom of 4. As I think about their future, I wish my kids were closer to our extended family.

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