The Four Horsemen of job loss

Back during the dot-com era, I was working for a very large international dot-com company. Things were great until it wasn’t. The bubble burst and the industry consolidated. As one of the youngest workers of that era, I lost my job during this M&A but was fortunate in that I had a set of skills that were portable and got a new job without missing a day. I love the new groove which lasted a few years. Then I left work and went back to (business) school, retooled and re-branded myself. I scrimped and saved through a couple of years and after graduation, was hired by another large company. I worked hard, became a rising star, and got transferred to different offices to work internationally, again. Then I was poached. But the work didn’t turn out to be what I had expected at the new firm. After some business disagreements which became unresolvable, conflict ensued and I was fired. But this time, I had a young child in tow. I hunkered down, stayed home with our then 1 year-old daughter while my then wife finished her Masters degree. We used up all of our savings but eventually we both got back on our feet. I would up finding a local, non-travelling job with a large financial institution. After almost a decade, the department I was in had a major restructuring. They asked for volunteers and I put my hand up. My job was outsourced and I walked away with a payout.

In the 20 years of work I had just described, I have been transferred, quit, fired and now laid-off. It’s the four horsemen of job loss. It can be terrifying. It can be liberating. It can be both. It is daunting especially if you have a young family and real financial commitments. I don’t have enough money to call it quits for good and I’m too young to be entitled to the earliest retirement packages. So as the man of the house, actually, the only person in this house, I went looking for work. Within several months, I found higher paying work. I was lucky. But here’s how I coped.

If you’re experiencing job loss, tell your daughter that you are changing work and her world is safe. Their reactions will be based largely on yours so be positive and upbeat. Do not try to hide this from social services or the courts. Demonstrate you have a material change in your finances as those laws are also there to protect you. Ensure you have at least 3 months of money you can draw on. You may be entitled to unemployment benefits. Don’t sneer at real money if you are eligible. And the sooner you accept your situation, the quicker you can formulate a new plan and the less time you will spend transitioning.

Have a plan

• If you’re not going to work anymore in the morning, don’t lie to your daughter and pretend to go. Don’t use words like fired, terminated or laid off; kids don’t know what that means. Tell them that you are changing work and her world is safe. Their reactions will be based largely on yours so be positive and upbeat. If you think this is the end of the world, they will too and then you’ll have more problems than just job loss.
• Discuss openly with you ex-wife about support and expenses. They may need to be adjusted. Do not try to hide this from social services or the courts. Bring documentation and demonstrate a material change in your finances. Those laws are also there to protect you.
• Create a new budget and ask your child to help pitch in ideas on saving and cutting back. Use the library instead of buying books. Buy off season clothes. Coupon like crazy to save a buck; a dollar in your pocket is better than a dollar in the merchant’s. Defer the vacation. Kids don’t need fancy things; they just need you around. You’d be amazed at children’s generosity of breaking their piggy bank to help out. My daughter offered hers; we never used it.
• Network and make your job search your new job. On your resume, don’t lie to pretty up the past. State simply that there have been corporate changes at your former company and you have an opportunity to rethink your next steps. It speaks of a more optimistic approach and doesn’t cast you as a victim. Never speak badly of a previous employer. Ever.
• If you need help, get it. Some exit packages include outplacement services, resume writing tips, job training and psychological counseling. Use it.

Be honest with yourself

• Unless there is severe corruption or a breach of trust, people rarely lose their jobs suddenly. For me, I saw it coming months before it actually happened. Don’t be blindsided.
• If you are laid off, take advantage of pay in lieu of notice, severance, unused vacation, discretionary and accrued bonuses plus other additional job transition assistance the firm provides. Talk to your accountant and a lawyer, even if it is just to review the severance letter. Your medical benefits could still be active. Remember that if you quit, you will have very little payroll remaining. The same is true if you are fired.
• Ensure you have at least 3 months of money you can draw on; six is more realistic. It is an unfortunate fact that many people don’t have enough for 1 month. You may be entitled to unemployment benefits. Don’t sneer at real money if you are eligible. Remember, the higher your seniority, the longer it takes for reemployment, so 9 months of reserves is actually more realistic if you want to keep your current lifestyle.

Even our fathers never had a job for life so there is absolutely no shame in changing jobs, whether it is by choice or by chance. The sooner you accept your situation, the quicker you can formulate a new plan and the less time you will spend transitioning. And remember, the best time to build a rainy day fund was yesterday; the second best time is now.