As the general landscape of doing business continues to evolve, many roles for corporate employees are changing too. A well-known industrial sea change, for example, is the ongoing automation revolution that’s replaced a host of jobs once done by employees with robotic counterparts. And while re-tooling businesses to operate more efficiently can actually create jobs that didn’t exist just a few years ago, it can also restructure organizations so radically that they end up laying off significant numbers of employees in one fell swoop. Clearly, what’s best for a company might not be best for some of its employees. All the more reason why being able to read and react to signs of a large-scale layoffs could be the difference between driving your career forward and simply having it driven away.
If you’re impacted by a mass layoff, what recourse do you have? Way back in 1989 the federal government enacted a new program called the WARN Act. The acronym stands for Worker Adjustment and Retraining Notification and essentially states that workers must receive notice 60 days prior to a mass layoff or plant closing.
There are, of course, a handful of particulars that determine what workers this notice applies to. They mainly consist of requirements such as the number of employees impacted and the length of employment for an individual worker. A worker simply getting laid off by a small business (less than 100 full-time employees), for example, would not be protected by the WARN Act. For a complete explanation of what exactly is covered, you can consult this Worker’s Guide.
When evaluating your current situation or strategy for your next career move, understanding more general Worker Rights, as defined by the US Department of Labor, can provide a solid foundation. Many employers are working hard to entice the best candidates with attractive perks and flexible schedules. But unscrupulous employers are always lurking too, so it behooves job seekers to learn what they’re entitled to under the law.
Now if even the savviest Wall Street analysts sometimes have difficulty predicting the relative health of the businesses they study, how can the average employee of such a company possibly know when the axe is about to fall? There is no crystal ball, but there are often convincing signs. Reorganizations, or “re-orgs” in corporate lingo, happen for a variety of reasons and don’t necessarily precede closures or even layoffs. If, however, major organizational restructuring seems to happen over and over again with little stable time between, it could be a sign of bad things to come.
Similarly, rifts in what might once have been a very clear and informative system of company-wide communication often cause employees to question explanations from their managers. Town halls, staff meetings, and the like should all put workers at ease by keeping them abreast of new developments. If historically open lines of communication seem to go quiet, that may signal a sale, merger, or other major shift in the works resulting in large-scale layoffs.
Be Prepared
If you feel your job might be on shaky ground, waiting for the 60 days’ worth of WARN Act coverage to kick in could restrict your options. Even when your employment horizon seems clear, there are steps you can take to help prepare for an unexpected layoff. Keeping your resume — including the most recent high-profile responsibilities and their timeframes — up to date is a great way keep your proudest accomplishments from getting lost in the shuffle. Informally discussing new opportunities with professional acquaintances, even before you’re ready to move on, can also help give you a sense of what your particular industry is looking for at the time. And there’s no reason to wait for a downturn to put out these “feelers.” It’s just a routine part of staying informed and staying prepared.
Defining what you want and need while job-hunting can sometimes feel like trying to hit a moving target. Workforces and even job functions are always in flux so there are plenty of opportunities you’d likely never considered in the corporate ecosystem — even in your own industry. But money is tangible and immediate. So, when a job is in jeopardy dollars and cents are usually top of mind.
Set Yourself up Financially
Prudent financial planning strategies can provide a welcome cushion in the face of a layoff. The most basic of these is to try to set aside enough money to carry you and any dependents through a rough patch.
Often, financial planners advise stashing enough to maintain your normal lifestyle for six months. This is commonly called an “emergency fund” and it can provide a valuable sense of security during the upheaval of a job loss. Another way to buy yourself time while sifting through the most promising employment options is with a well-chosen credit card. Using a card with a strong introductory APR offer could help bridge the gap between buying the things you need and arriving at a steady income to eventually pay them off. With a 0% introductory APR offer on purchases, you can easily defer your payoff schedule for a year or more and even earn cash back or miles in the process.
Whether you’re planning a move within your current organization, searching for other opportunities, or simply trying to take stock of your overall employment situation, learning more about your legal rights and your employer’s responsibilities under the WARN Act can’t help but make you a more proactive participant. Just think, with this article under your belt, you’re already a little better prepared for whatever’s next.
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