A 16-Step Guide to Surviving a Layoff

By Dawn Handschuh, Personal Finance Writer   

Most of us will, at some point in our working lives, face an unexpected job loss, either through layoff, "downsizing," or performance-based termination. Although it may feel like a sucker punch in the gut when it happens, there are many steps you can take to optimize your chances of getting over this hurdle and landing on your feet.

1. Don't burn your bridges. If you make a graceful exit and conduct yourself like a professional, there could be opportunities to continue working for your former employer as an independent contractor or on a freelance basis. Former colleagues can also serve as valuable references, so don't risk alienating them by bashing the company. Don't take your layoff personally; layoffs often result from budget cuts and can affect even talented professionals.
   
2. Protect your best interests. Don't feel pressured to immediately sign a non-compete clause or severance agreement until you've had time to think about it. Remember that severance, whether it involves cash, health insurance benefits or job coaching, is negotiable. If you know what kind of package other laid-off workers have gotten, you'll be in a better position to negotiate one for yourself. Remember that severance benefits will generally delay the start date of unemployment benefits.
   
3. Take a deep breath. Don’t panic. Don't go on an extended "vacation," but do take a day or two to consider your options and future direction. Is this a good time to go back to school or relocate? Is the time ripe for a career change? Whatever you decide, make sure you adopt a positive mental attitude. Don't dwell on the past; instead, approach your layoff as an opportunity to make positive changes in your life.
   
4. File for unemployment. Many states allow workers to file for benefits over the phone or online as well as in person. Standard unemployment benefits, which are based on your previous income, last for 26 weeks, while extended unemployment benefits tack on another 13 weeks of benefits. Effective November 23, 2008, President Bush signed into law a seven-week extension to the program. Your eligibility for benefits will vary, so check with your state's unemployment office for further details.
   
5. Continue your health insurance. The best option is to enroll in your spouse's health insurance plan, but if that's not possible, sign up for COBRA (the Consolidated Omnibus Budget Reconciliation Act), which entitles you to maintain your existing health insurance coverage for up to 18 months after a job termination that doesn't involve gross misconduct. Your premium costs will be much higher, though, because your employer is no longer required to foot the bill. You have 60 days to sign up for COBRA, if that's what you decide.
   
6. Review your budget. Scrutinize your monthly expenses for places to cut costs. Avoid taking on new debt, and defer big expenditures if you can. If you have current credit card debt, be sure to continue making at least the minimum payments required.
   
7. Update your resume. Include your most recent job experiences, and ensure that all your personal information is still accurate.
   
8. Register or update your preferences on job sites. Online job websites like www.monster.com or www.hotjobs.com are an indispensable part of any job search, but don't overlook niche job sites that cater to workers in specific fields. Many of these sites permit users to save keyword search terms and will automatically email you when jobs fitting your criteria become available. Even Craig's List posts jobs. In today's challenging economic environment, you may have to beat the bushes to find work, so leave no stone unturned.
   
   If you don't have a home computer or Internet access, visit your local library. Free Internet cafes exist in many public areas or at the local coffee shop.
   
9. Check the classified listings. Although newspaper want ads may seem obsolete, some employers who prefer local candidates or don't wish to be bombarded with hundreds of applications choose to advertise in a local newspaper.
   
10. Preserve your good credit. Good credit is an important job-search tool. Many employers check your credit report as part of their background check. Review your credit report now, and work to improve or correct any blemishes you find. You won't have the opportunity to explain problems away if a prospective employer turns you down based on your credit report.
    
11. Network your heart out. www.linkedin.com and other online networking sites offer job-seekers an opportunity to renew old friendships, reunite with old classmates and keep in touch with colleagues who may be working or laid off, too. You can also network in person by joining the local chapter of various career-oriented associations.
    
12. Investigate staffing, recruiting and temp agencies. Even a temporary gig outside your field can pave the way toward unanticipated opportunities or, at the least, bring in some much-needed cash until you find a permanent job.
    
13. Track your job-hunting expenses. Certain job-hunting expenses, such as travel for interviews (and the local unemployment office), postage, office supplies and phone bills, are tax-deductible, so be sure to log related expenses.
    
14. Create a blog. Depending on the type of job you had, you may be able to position yourself as an expert in your field by creating and regularly posting to your own professional blog, choosing a subject area that pertains to your work experience and background. Employers will be impressed by your knowledge and commentary. What better way to showcase your commitment to your field?
    
15. Google yourself, and see what comes up. Internet search engines are used by many employers as part of their background checks to see what they can dig up about job candidates. If you have a profile on social media sites like My Space, be careful what you reveal about yourself. Scan them carefully, and remove any disclosures that could appear embarrassing, unprofessional or unethical.
    
16. Create a structured weekly routine. Finding a job should be your new full-time job, but make sure to include regularly scheduled time for exercise and socializing. Being unemployed can be stressful, so take time to relax by engaging in activities that you enjoy and taking care of your physical well-being.

Remember, a job loss is not the end of the world. This, too, shall pass. Stay disciplined, and keep busy. Concentrate on how you can transform an unexpected crisis into a career-changing new chapter in your life.