What to do if you get fired
Wednesday, July 4th, 2007A lot of the work I do involves perfectly productive people who have been terminated by their employer. I continue to be surprised at their surprise when it happens. Even though rumors about lay-offs often swirl about them and, in some instances, have actually started, many of the white collar professionals I know remain in a state of denial until the very last minute when it finally happens to them.
It is little wonder that when the ax finally falls, few are fully prepared and spend valuable time being confused about what to do next. Over the years, I have found two categories of advice helpful and both involve bracing oneself to deal with the trauma of being unemployed.
The first BRACE is psychological. White collar workers are an independent bunch with a fundamental belief in their ability to influence practically any and all outcomes. More times than not, it is a belief that has served them well. They are often positive people with “can-do” attitudes that organizations rewarded by pushing them forward with good pay raises and promotions. The idea of being victimized by being laid-off feels foreign to their personal constitutions. (For an excellent discussion of this topic see Barbara Ehrenreich’s Bait and Switch. Brace yourself by understanding you have lots of company and that perfectly productive people get fired every day. You are not alone and by being unemployed, there is nothing wrong with you. If at all possible, share the details of your circumstance with others who can/will often help you think through the situation and make you feel better about yourself.
The second category consist of bread and butter issues. BRACE yourself against the economic damage that can, but need not, accompany unemployment. Good decision-making here will help you now and in the future. Focus on:
• CASH FLOW: Make sure you schedule and track your daily expenditures. Know when you will run out of cash and eliminate all but the bare necessities. Obviously, do not take on new debt unless advised to do so by a qualified financial advisor who has your best interest in mind. Friends tell me it is possible to stretch the date of being out of cash out by as much as six to seven months if you are disciplined about it.
• UMEMPLOYMENT COMPENSATION: Apply for unemployment compensation even if you do not need the cash right away. Put it away for use later.
• HEALTH INSURANCE COVERAGE: Stay covered through COBRA if at all possible. The organization that laid you off is required to provide you with COBRA coverage information. Continuous coverage will force potentially new employers to cover any pre-existing conditions you currently have or may develop curing your period of unemployment.
• LEGAL ADVICE: Early in the game, make sure you know what legal action to take and what rights you have. This advice is often free through such organizations as Americans For Fairness In Lending.
Also, visit the site of a newly founded white collar advocacy organization called United Professionals for additional support with unemployment issues.