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.
Smiti Munwani has
been writing for a very long time. She is a journalist, book author, content
writer and dietitian. She has had two books published, The Snack-Time Cookbook
and Count Your Calories to Slim and Stay Slim. She also has two books ready to
be published, one on party menus and another on cooking for a healthy heart.
She can be contacted via email: smitimunwani@gmail.com if anybody is interested in re-publishing the books (she has the
copyright) or requires any articles or content. She has written extensively for
the print media and done web content writing.
A versatile writer,
Smiti writes on a wide range of topics - please contact her via email for web
content work.
