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You’ve just been told you’re being laid off. There are things you can say and do before leaving your seat to ensure a smoother transition to whatever comes next – and hyperventilating is not on the list. In a few days, with a clearer head, you can take further action to turn this devastating turn of events into a positive.

1. Stay calm and composed. Don’t vent your anger on the folks whose misfortune it is to deliver the news. These same people might be able to assist you in the future – if you leave a favorable impression.

2. Mention any ongoing projects you’re working on, and offer to work 20 to 30 hours per week as an independent contractor to complete them or assist with transitioning your responsibilities to others.

3. Negotiate the severance package as you would a salary. “Don’t assume whatever they hand you across the table is all there is,” says Jennifer Berman, managing director, CBIZ Human Capital Services, Chicago. As the economy worsens, far fewer companies are offering the standard (but not obligatory) two weeks’ pay per year of service, and some are offering no severance pay at all. “The worst they can say is No,” Berman says. Have a labor-law attorney review package details before signing anything.

4. If the employer won’t budge on the dollar amount, ask for your company car, your work cell phone, an extension of your gym membership – whatever you feel will be of use.

5. Find out about cashing in unused vacation, sick and personal days.

6. Ask for outplacement assistance with a reputable firm.

7. Ask your supervisors for letters of recommendation and to provide you with positive references to aid in your job search. Ask them to upload these recommendations onto your LinkedIn profile. (If you don’t have an account on LinkedIn or similar online professional networking site, set one up.)

8. Request copies of your performance reviews. Positive evaluations boost your self-esteem and come in handy when you update your résumé. “Also, if and when job interviewers ask why you left, you can say, ‘My previous company had economic-driven layoffs, and many top performers were let go. I consistently received high performance ratings, which I’m happy to share with you,’” says Michael Neece, chief strategy officer, PongoRésumé.com, Northborough, Mass.

9. Ask whom to contact with questions that will inevitably arise when you’re thinking more clearly. Better yet, schedule a specific time to discuss matters more fully.

10. File for unemployment as soon as possible. You may be able to do so online.

11. Instead of putting off a decision regarding COBRA (an extension of your company’s group health insurance) in hopes you’ll quickly find a job with new benefits before the COBRA enrollment period ends, you might be wise to sign up right away. Riding out the 60-day sign-up period used to be the smart way to go, but as part of the government’s economic stimulus package, involuntarily terminated employees now get a 65 percent subsidy for COBRA coverage for nine of the 18 months it’s available. Anyone who was let go since Sept. 1, 2008 can sign up retroactively for the subsidized coverage. The employer “fronts” the subsidy and then recoups it from the government.

12. Don’t rush to decisions about your retirement savings. Faced with a loss of income, you might be tempted to pull money out of your 401(k) account. But unless you qualify for an exception, you’ll pay a 10 percent penalty plus taxes for early withdrawal. If possible, leave the money where it is until you find a job and then roll it over into your new employer’s 401(k) plan. Or roll it over into a personal IRA, but first find out whether this is best for you. By law, all investors 59-1/2 years of age or older are entitled to take money out of their 401(k) accounts without paying the 10 percent IRS penalty. In certain situations, people may avoid the penalty as early as 55 or even 50 years of age; however, if they roll the money into an IRA, they might lose that option, says Christian Cordoba, retirement wealth manager, California Retirement Advisors, El Segundo, Calif. If you must withdrawal funds, reduce the tax impact by “trickling money out as needed over two or more years instead of taking out a lump sum in a single calendar year,” he advises.

13. If you must withdrawal funds from your 401(k), reduce the tax impact by “trickling money out as needed instead of taking a lump sum,” Cordoba advises.

14. Take two or three days to mourn the loss of your job. Resist the urge to call everyone in your network immediately. Wait until you are poised and have a spruced-up résumé and specific goals. You’ll make a better first impression.

15. Do something to “symbolically bury” your old job so it’s easier to move on, advises Stephen R. Balzac, president, 7 Steps Ahead, a Stow, Mass.-based organizational-development company. “Burn the business cards or something along those lines.”

16. But don’t burn bridges! Write thank-you notes to your former supervisor and key colleagues, enclosing your contact information. They might pass it along if they hear of an opportunity.

17. List all the external companies you interacted with in your previous position and the names of people you dealt with. Include these folks in your networking efforts.

18. When you update your résumé, also update your LinkedIn or other online social networking profile to share your latest accomplishments and the fact you’re back in the job market.

19. Review your past accomplishments. “Were you someone who got projects out the door on time and under budget? Were you someone who could diagnose a customer’s problem and fix it? Did you assemble cracker-jack teams and turn them into major revenue producers for the company? Each of these things you can sell to another company regardless of the industry,” Balzac says.

20. Identifying companies that need the results you can provide. Network and find connections inside each company. Try to meet with people informally to discuss the company. Don’t ask for a job right away. Establish your value and get them interested in you first.

21. Have business cards printed with your name, specialty and contact information. These can be used “to entice networking contacts into sharing their business card with you,” says Shawn Graham, author, “Courting Your Career: Match Yourself with the Perfect Job” (JIST Works, 2007).

22. Take inventory of your expenses. Separate the needs from the wants. Get rid of cable, a seldom-used gym membership, house-cleaning services, etc.

23. Reduce the cost of necessities. Shop around for cheaper cell phone service and auto insurance. If necessary, refinance your auto loan to lower your monthly payments. If you anticipate you’ll have trouble paying the mortgage, talk to your lender about options, advises Ethan Ewing, president, Bills.com, San Mateo, Calif.

24. If you have student loans, ask about deferring them while you’re unemployed.

25. Move your savings over into an online savings account. Generally, online financial institutions pay higher interest rates than conventional banks and are just as secure if they have FDIC backing. Many Web sites, such as Interest.com, enable you to compare rates among online and conventional banks.

By Dawn Klingensmith
May 5, 2009
source: philly.com