Job layoffs

A layoff is the suspense or dismissal from your job because of adverse business conditions or corporate reorganization. Layoffs may be temporary or permanent.

Under the Workplace Adjustment and Retraining Notification (WARN) Act of 1989, employers with 100 or more employees generally must give 60 days notice of mass layoffs or plant closings. However, such notices may not be required in the case of natural disasters or unforeseen changes in the business situation or industry. Although a WARN notice does not necessarily mean you will be laid off, it can greatly heighten anxiety about the possibility of layoffs.

Severance packages
Severance packages may be provided according to company policy or negotiated for individual employees on a case-by-case basis. Employers are not legally required to offer severance packages for employees who have been laid off, however. Generally, a severance package may include:


full or partial salary for a specified period of time lump sum payment
benefits, such as health insurance for a limited period of time
outplacement services
retraining
an agreement not to contest an employee or create adverse publicity for the company, such as talking with media about the layoffs.
Factors that impact a layoff
Various factors can soften or intensify the impact of a layoff. You're more likely to be deeply affected if you're the person laid off, rather than one who was "spared" or simply heard about the layoffs.

Your work environment can also play a role. For example, layoffs may be more expected in certain industries or organizational cultures, but may come as more of a shock in others. The circumstances of the layoff -- such as an economic downturn, change in industry conditions, corporate mismanagement or catastrophe -- can affect how you feel about the layoff. The amount of support for employees, such as severance packages or outplacement services, can also affect your perception of the situation.

Lower-level workers and administrators or managers may handle news of a layoff differently. For example, a layoff may be a bigger disruption in the lives of lower level employees who are living paycheck to paycheck than it would be for higher level employees who have cash reserves to cushion the blow. Higher-level workers may have additional resources, such as professional networks, to help them cope better with layoffs. Also, higher level workers often have college degrees or specific skills, giving them an edge in finding a new job. Higher-level employees might have additional losses with a layoff, however, such as the loss of social standing, respect by peers or family, particular lifestyle or even personal identity.

People who've weathered other losses may be able to find strength from their experiences. If you've had healthy coping experiences with grief, you may be in a stronger position to deal with being laid off. Keep in mind, however, unhealed wounds may be aggravated by the layoff if you consider it "just one more thing" to deal with. Those who have strong support systems and a perceived degree of power or control over the layoff may be better prepared to handle a layoff in a healthy manner. Generally, the better an employee's family adjusts to the layoff, the better the employee adjusts.

Characteristics
Reactions to a layoff are often consistent with the grieving process. Before a layoff, you may experience anticipatory grief over the potential loss of your job or a co-worker. You may also bargain with yourself, such as "I won laid off because of workplace politics, a bad boss, etc." You may feel angry or develop symptoms of depression. Eventually, you may accept the loss as you work through the grief process. You may even feel optimistic about seeking new employment and want to progress in your career.

When faced with job layoffs, you may experience stress-related physical complaints, such as fatigue or changes in sleep or eating patterns. You may experience a decrease in morale, sense of job security and trust in management. You may be worried or anxious about the lost income. Some people who've been laid off feel guilty, such as, "I didn't do enough to make the cut." You may have a lost or disrupted sense of identity or work-based social relationships. If you were spared a layoff, you may perceive decreased support from your employer or organization, increase in workload, loss of control or identity, and threat to your self-esteem.

Some people turn to dysfunctional or destructive coping mechanisms, such as substance abuse or increased smoking or drinking. In extreme cases, a person may respond with suicidal or homicidal thoughts or behavior.

Impact on others
Layoff survivors often sense their own jobs are in jeopardy. They may experience survivor guilt, particularly if they knew people who were laid off or were potential targets for layoffs themselves. Retained employees may distrust or lack confidence in the employer. Morale may drop, and there may be an increased sense of work stress and workload. They may feel simply burned out or have impaired social relationships with former colleagues.

Sometimes, experiencing a job layoff can be more than you're able to handle at the time. Symptoms such as decreased energy, anxiety, depression, inability to concentrate and hopelessness may warrant further evaluation by a health care professional.

As with all physical symptoms, consult your medical doctor to rule out a medical condition. If these or any other symptoms cause you distress that doesn't seem to improve, seek additional help and support from a mental health care professional.

Coping strategies
After a layoff, it's important to acknowledge and attend to your feelings. Allow yourself time to go through the grieving process. Pay attention to the needs and reactions of close family members as well. Avoid secrecy about the layoff. Instead, talk realistically and discuss the implications.

On a practical level, plan your finances appropriately. You may need to take aggressive budgeting and cost-cutting measures or contact your creditors. Take advantage of available support systems and services, such as family members, co-workers, informal career networks, any outplacement services offered by your former employer, or government-provided benefits, such as unemployment benefits or job banks.

Make job-hunting your new career. Focus on sending out your resume, submitting applications, and looking for jobs through the newspaper, Internet, job banks and other avenues. Do your best to maintain a positive attitude. Avoid retaliating against or nd drugs. Maintain your regular sleep schedule as much as possible, eat healthfully and exercise regularly.

Insurance and benefits for laid off workers
COBRA (Consolidated Omnibus Budget Reconciliation Act of 1986) allows employees of private sector businesses with 20 or more employees to pay for continued healthcare insurance for themselves and their families for a limited time after a job loss. Generally, you must pay more for the coverage since the employer no longer contributes to the premiums. You have 60 days after your last day on the job to take advantage of COBRA coverage. COBRA is not available to employees who are terminated for gross misconduct.

Unemployment insurance is provided by state agencies, generally for workers who are involuntarily unemployed. (Individual states may define this in various ways.) Outplacement services may be provided by outside firms or agencies as part of a severance package, often including assistance finding a new job, career development seminars, individual job counseling, help writing and sending resumes, and training in basic skills to make you more marketable, such as computer skills or typing.

Family resiliency
You may be secretive or reluctant to talk with your family about your job loss because of fear of their reaction or humiliation. Close family members may experience symptoms of depression, anxiety, a generalized sense of insecurity, stress-related physical problems and increased irritability. They may experience a loss of social ties or social standing because of the layoff as well.

Be aware that these symptoms don't necessarily disappear once you've found a new job. The anxiety is often the transition, not employment status. You must adjust to a new job and cope with a possible loss of prestige or income. In some cases, the new job may be temporary. Your family may have to cope with various lifestyle changes, such as changes in your income, hours and availability.

Open and honest communication can help promote family resiliency during a layoff. Mutual supportiveness and dealing with stressors honestly can have a positive impact. Resilient families also have a willingness and ability to solve problems together about issues such as budgeting, cutting costs and working with creditors.

To help support your children during a job layoff, display affection and remain involved in their lives. Discipline with reasoning and explanation. Discuss the layoff with your children as appropriate. Provide comfort and realistic reassurance. Be attentive to their emotional needs.