This post is by our regular contributor, Erin.
You just got the news from your boss: you no longer have a job.
Whether it was a surprise or you had a feeling it was coming, getting laid off is one of the most jolting things that can happen to you.
You went from thinking everything’s okay, you’re getting by, paying all your bills, to not knowing what in the world you should do next.
Take some time off? Freak out? Start contacting your network? Boost your side hustles? Go back to school? Freak out some more?
While panicking is completely normal, we’re providing you with a step-by-step guide you can use to get back on track if you just got laid off so you can stop worrying and start taking action.
Regain Control Over the Situation
I’ll be honest, I was laid off at my first job as our company went bankrupt, but it was a retail position and I was in college. I didn’t exactly have much pressure on me to earn.
However, I did watch my dad go through losing his job…twice. It hit our family hard. Those were some of the darkest and scariest moments for us. I’m glad we’re past them, but I learned a few lessons I want to share.
First, you’re entitled to feel how you feel. Again, panicking is perfectly normal. You’re in shock, you’re worried, you may have a family to provide for, you may have bills coming up.
But don’t let yourself get stuck here. That’s the worst thing you can do. Once you get past the initial whirlwind of emotions, you need to get serious about making a game plan on how to get back to the world of employment.
Your future is in your hands. You have to take action if you want to be successful. Don’t assume a job opportunity will simply fall into your lap. Take control of the situation instead with the following steps.
File for Unemployment
If you were laid off through no fault of your own, you should try and file for unemployment. Each state has different requirements you have to meet as far as how much time you must have worked, or how much money you must have earned to be eligible.
A simple search of “filing for unemployment in [your state of residence]” should give you the results you need. In most cases, you can file for unemployment online.
Get Your Resume in Shape
This is the “boring” tip everyone dreads, but you need an updated resume before you start applying to jobs. This is why it’s a good idea to keep your resume updated as you develop new skills and responsibilities at any job.
Do you have access to your old job description? Maybe you have review papers filed away somewhere, or your position is public knowledge. Grab the information you can find as a starting point.
Brainstorm the biggest accomplishments you’ve had over the last year or two, and put them down on your resume.
Need more help? Ask a Manager is the #1 resource I recommend to anyone needing help with job-related things. You’ll find tips on writing a resume, a cover letter, how to interview, etc. The comments section is helpful, too.
Brush Up on and Develop New Skills
Has it been a while since you’ve completed any certifications for your industry? Do you need to?
Search for job postings in your area that you’d be interested in. Take note of the qualifications they ask for, and write them down. Figure out how to work toward them!
Are there industry conferences nearby? I wouldn’t recommend dropping a ton of money if you can’t afford to, but if there are helpful workshops and networking opportunities within your city, it may be worth looking into.
Reach Out to Your Network
I used to hate this tip because I never had a professional network when I worked in an office. After all, I was just a receptionist – what kind of network did I need?
Oh how that viewpoint has changed. I wouldn’t be where I am today without my network – and it mostly consists of people I consider my “blog friends.”
You don’t necessarily need a “professional network” to succeed here. You simply need people who are connected and can keep an eye out for you. That includes friends, family members, and neighbors.
One other tip – if you’re younger and less experienced, or are contemplating a career change, reach out to someone who could mentor you or at least give you an idea of what to expect in the industry.
Practice Interviewing
This is a small but important step. If you’ve been out of practice with interviews, or “selling yourself” and your skills to companies, you should go through a few mock interviews with friends or former colleagues willing to help you out.
You might think you know what you want to say during the interview, only to have a difficult question come up that throws you for a loop.
It also pays to brainstorm a list of questions to ask while on an interview as it shows you put thought into it. Some interviewers are disappointed when you can’t think of anything.
Questions show interest and enthusiasm! Just don’t ask anything silly like, “How many vacation days are employees eligible for?” before you even get a job offer.
Take Action
It’s time to put everything you’ve learned together. Get ready to crank out those cover letters (yes, you need to tailor them to each job listing).
Once you feel confident and prepared, you need to put yourself back out there. It’s fairly similar to dating (totally what you wanted to hear, right?).
Some jobs are going to be a good fit. Others won’t be. Interviews are a two-way street. If something doesn’t feel like a good fit to you, hopefully you have enough money saved to turn it down. You don’t want to get stuck in a job you don’t like out of desperation.
One of the things that helped me on my job searches was this: if you make it to an interview, the company saw something in you. They’re interested in hearing what you have to offer. Make it good, and don’t be afraid to follow up if you don’t hear back.
Stay Positive
The absolute worst thing you can do for yourself is to get down about lack of opportunities. I know it’s much easier said than done, but look at it from the perspective of an interviewer.
Who do you think is going to make a better first impression? Someone that comes to the interview with their head down, arms crossed, and shoulders hunched?
Or someone who comes to the interview with a smile, a firm handshake, and great posture?
Your attitude makes a huge difference in whether or not you get hired. Managers want to hire someone who is confident and enthusiastic about their ability to contribute to the company.
If all else fails, you can always create your own opportunities…
Work Those Side Hustles
Did you have a few side gigs prior to being laid off? Having multiple income streams is a great fallback plan when things like this happen.
Continue working those side hustles, and if need be, develop more. Tell your clients you have extra room in your schedule to take on more work. Offer them different services if you can.
Haven’t started freelancing? Now is a great time to put new skills to work and develop more confidence in yourself.
There are quite a few people who have been laid off who then went on to become super successful entrepreneurs. Their job loss was actually a blessing in disguise. Pat Flynn’s story is one of the most well-known, at least in the personal finance sphere, and it’s inspiring if you haven’t read it!
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I know it can seem like the end of the world when you get laid off, but all is not lost. Plenty of people are able to get back on track or even jump ahead of where they were before after getting laid off. Having read this, you’re already ahead of the curve!
Check out DC’s new book Hustle Away Debt to learn everything you wanted to know about making money through side hustles!
Have you ever been laid off before? How did you react? Did you take any of these steps? Is there any other advice you’d give to someone who just lost their job?
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These are all great steps Erin. I lost a job soon out of college and it was a bit overwhelming at the time as I was still in the middle of paying off debt. I think I did most, if not all, of these things and thankfully it didn’t last too long. The other thing I’d add is to also find some sort of outlet – albeit a cheap outlet – so you’re not always focusing on the situation. It can be as simple as exercising everyday, but it helped me mentally to have something else to focus on everyday.
Just wrote a post about how I survived a layoff after being with a company for over 20 years. It’s important to stay positive, perspective employers can smell a defeated attitude. Leverage your network, but this should be done all the time not only in your time of needed. Having a plan for your money and an e-fund we give you piece of mind during a time like this. When you work for someone else your employment is never guaranteed.
Great tips! I would add- remember your resume is a marketing document, not just a list of past experiences… it is so critical to quantify the value you can add, so that recruiters are chasing you down. And, as Brian said, work that network!
FrugalRules So true, John! I like that tip. It’s so hard to lose a piece of yourself in this way – especially as so many of us tie our identities to our job titles. It’s very important we give ourselves something else to focus and improve on to give us a confidence boost elsewhere, and exercise is a great idea!
DebtDiscipline 100% agree, Brian. Thanks for sharing what you learned. It’s a tough time to endure, but the only way you’re going to come out ahead is if you take action and remain positive.
Hannah UnplannedFinance Yes! It’s interesting – after freelancing for over a year, it’s become more and more natural to “pitch” my services. I used to be a nervous wreck before interviews, but I think I’d be okay now. You definitely need to get in that mindset of getting clear on what value you can provide, and being confident about it!
Great tips! Ahh this is exactly why having a reliable side hustle is so important. It’s easy to feel let down and defeated after being laid off – especially if it was a job you were very invested in. Side hustles can help you keep your spirits high and more productive.
Anum Couldn’t agree more, Anum! It gives you something to focus on and it’s not as stressful when you know you have an immediate backup plan.
Jaime Donovan Layoffs do tend to happen around the holidays, which doesn’t make it any easier. You’re right that debt can add a huge burden to an already bad situation!
I was also laid off a few years ago. My boss took me to meet with HR and told me it’s my last day ant I had 15 minutes to take my personal belongings and leave. I took it quite calmly at the time and smiled to everybody telling them it was my last day in the company. The next day emotions finally hit me and I broke down in tears – I had been doing a great job there and I thought I’d stay in the company for a very long time. Why was it me? It was a dark period in my life, in a way, it was depressing – every day I wake up and I realize I don’t have to, or rather can’t go to work. Suddenly I started missing all my little tiny itneractions at work – even the person that everybody hates. Having all day just to myself is a terrible experience. I started jogging again which helped. Luckily soon I realized I needed to find another job very quickly and started action. I started to send out resumes to all the possible openings and called all my previous contacts, even those who I might’ve just met once. I practiced interviewing and started speak to myself in front of the mirror LOL. Finally within two months of my layoff, I got multiple job offers and now I am making much more than what I was making. Now looking back, I’m actually grateful for that experience. I made me realize nothing is permanent except change. As an employee, you are always subject to the mercy of your employer. Because of that experience, I decided eventually I will either start my own business or need multiple sizable streams of income, or both.
Thanks for the article. These are really useful tips.
Charlie_15 It sounds like you learned a lot of valuable lessons from your experience. It’s unfortunate we learn the hard way sometimes, but you’re very right that change can happen, and when we least expect it. It pays to be financially prepared, and I’m glad you’re in a better position now!
I’ve never been laid off before, but I did quit a job without having a real backup plan. I was able to use my network to find another job when I wanted to start back working. I also used that time to get more serious with my side hustles. While, I would never quit a job without have a plan again I did learn a lot about myself.
Jason @ The Butler Journal I’ve also left a few jobs without having a solid backup plan, though at the time, I was still living with my parents and at least had savings. It’s nice to have that option to explore other interests!
I was laid off Memorial Day weekend 2015. It was a shock. I had a mortgage to pay and two kids to feed. I worked for this company for 9 years and they only gave 9 weeks severance. The day they told me I got on the phone with head hunters and had my resume ready by the afternoon. I got a job offer for a higher salary and more vacation time by week 7, told them I could start in two weeks. Don’t panic, hit the phones, go on every single interview even if you don’t want the job, it’s practice. During the 9 weeks I decided I wanted to start a side hustle in case this ever happened again. I built a website and wrote a guide on how I invest based on my experience in corporate finance. So, I am grateful for the time off actually.
Derrick Horvath Wow Derrick, you’re a great example of what you should do if this ever happens! I like that you didn’t waste any time in making calls. You’re right that every interview is practice, although if you’re 100% sure you’re not going to take the job, I would at least say not to waste the time of the interviewer (and your time interviewing may be better spent sending out additional resumes). Great job starting a side hustle in the middle of that, too!
Staying positive is so important to remember in this situation. It can be easy to lose control and begin to panic, and how could anyone blame you. But, it never helps you or your loved ones. These are great steps on how to take action in a positive direction.
CalebMc Exactly! It’s perfectly human to have those emotions, but one way or another, you need to get back on your feet eventually.