What to do after getting laid off?

layoffs
UKG
Author

Lawrence Wu

Published

July 9, 2024

Modified

July 9, 2024

My company, UKG, announced layoffs last Wednesday (see an industry expert’s take on reasons why). 14% of the company was let go which is around 2,200 out of the 15,000 employees. Many of my teammates and friends were let go. I have been a part of companies that have had larger percentage layoffs (>30%). However, the sheer number of people that were affected is somewhat shocking. Considering the number of lives, families, and children that were disrupted is difficult to think about.

I compiled a list of to-dos after one get’s laid off. Note this list is compiled from the following sources (Bogleheads Thread 1, Bogleheads Thread 2, HBR article). Then I extracted, categorized and ranked each items with gpt-4o.

To-Dos After Getting Laid Off

Immediate Actions:

  1. File for Unemployment: Apply for unemployment compensation (U.C.).
  2. Review Severance Package: Understand severance details, including insurance continuation.
  3. Health Insurance: Decide between COBRA, ACA, or Medicaid based on coverage needs and costs.
  4. Update Resume and Network: Prepare resume and reach out to recruiters and professional networks.
  5. Take Time to Process: Allow at least 24 hours to process the layoff before job searching.
  6. Reconfigure Mindset: Adjust your mindset to stay positive and focused on the future.
  7. Emotional Adjustment: Take time to process emotions and plan next steps.
  8. Financial Planning:
    • Calculate monthly burn rate and adjust expenses.
    • Ensure emergency funds are accessible.
    • Maximize contributions to Roth IRA if eligible.
  9. Health and Wellness: Focus on spiritual, mental and physical health (exercise, diet, socializing).

Financial Considerations:

  1. Understand Severance and Benefits: Clarify severance package details, including eligibility and benefits.
  2. Expense Management:
    • Cut discretionary spending.
    • Consider subletting or exiting the lease if feasible.
  3. Asset Allocation:
    • Reassess and adjust asset allocation if necessary.
    • Consider Roth conversions if in a lower tax bracket.
  4. Document Accomplishments: Use CARL (Context, Action, Result, Learning) or STAR(T) (Situation, Task, Action, Result + Takeaways) methods to list accomplishments.
  5. Pension Decision: Evaluate whether to take a lump sum or monthly pension.

Personal Well-being:

  1. Emotional Adjustment: Take time to process emotions and plan next steps.
  2. Health and Wellness: Focus on mental and physical health (exercise, diet, socializing).
  3. Positive Mentality: Engage in activities that improve mental well-being (yoga, meditation, hobbies).
  4. Career Reflection: Reflect on career goals and consider potential career changes or further education.

Career Management:

  1. Update Resume: Prepare and tailor your resume for job applications.
  2. Network with Professionals: Reach out to former bosses, colleagues, and professional networks.
  3. Job Hunting Schedule: Create a schedule for job search activities.
  4. Behavioral Interview Prep: Prepare stories that demonstrate your accomplishments and problem-solving skills.
  5. Identify Job Keywords: Highlight keywords from job descriptions to tailor your resume.
  6. Explore Job Boards: Search for interesting job listings but delay applications until your resume is optimized.

Long-term Strategy:

  1. Prepare for Transition Outcomes: Be ready for any possible outcomes, including potential layoff or job offer with new entity.
  2. Financial and Career Goal Setting: Set clear goals for your financial stability and career direction.
  3. Value Alignment: Identify your values and ensure potential jobs align with them.
  4. Monitor Job Market: Actively search for new opportunities while negotiating with current and potential employers.
  5. Relocation Considerations: Explore job opportunities in different locations if current lease can be terminated.
  6. Self-care and Growth: Use this time for personal growth and maintaining a positive mindset.