Lay-Offs — Are You Next?

As if we weren’t under enough stress these days, we keep reading bad news about the economy, with financial markets in crisis, companies announcing layoffs, jobs going overseas, and weakening employment statistics. It’s quite a challenge trying to figure out how we will be personally affected.

In this guest post, Cynthia Shapiro, career expert and author of the best seller Corporate Confidential:50 Secrets Your Company Doesn’t Want You To Know – And What To Do About Them offers some insider tips to show you how to read the signs of impending layoff and protect yourself.

Are you next?

How can you tell if you are one of the predicted millions of employees who will be in danger of layoffs this year?

Well, the good news is that companies have gotten very good at telling their key employees they are safe and will be protected should anything happen.

The bad news is that your boss will never tell you if you are one of the ones in danger, so if you haven’t been pulled aside and told you’re safe, you’ll need to learn how to read the secret signs of a job in jeopardy.

Signs about the company are easy to read if you know what to look for:

Listen to the company. If they say they’re having financial challenges, believe it! This is very difficult for a company to say and admit openly, so don’t be fooled by a casual presentation and an urge “not to worry.” If they are openly saying it, they are actually trying to brace you for the worst. Be prepared.

Look at raises and bonuses. Are they the same as last year? Are they gone? Are they token “don’t worry” raises and bonuses? The last two are the ones you need to worry about. (The annual company spring or summer party or BBQ is another good litmus test to watch carefully –- Is it significantly smaller? Is it gone?).

Watch the ebb and flow of business. If the company runs on contracts, and it lost one or didn’t get the numbers it needed, be wary. Also, if it recently made an acquisition that put it beyond its means, this could spell trouble.

Beware outsourcing. If the company is now outsourcing a lot of things it used to handle internally (areas like accounting, HR, IT, tend to be hit first), using temp agencies instead of hiring full-time employees, or is considering or has already started sending jobs to India or China, this means it’s having trouble affording its workforce –- which can be a serious sign of trouble.

If you see the signs that your company could be headed for layoffs or downsizing, how can you tell if you’re personally in danger?

Companies tend to use layoffs as an opportunity to clean house, so the top five danger signs to watch out for are:

Are you openly unhappy? Have you been outspoken against company policies or openly complaining? This type of outward unhappiness is one of the top-secret reasons for job loss. If the company is having financial problems, the last thing it needs is negative internal PR.

Are you expensive? Have you cost the company money or created an inconvenience? If you’ve filed a workers compensation claim, reported a sexual harassment issue, made a costly mistake, or went out on maternity or medical leave, you could be at the top of the list when layoffs come calling. Yes, this may be illegal, but it still happens more often than we’d like to think. Layoffs provide what is often perceived as a safe opportunity to remove employees who have cost the company money or inconvenience. Some companies just can’t pass up that opportunity.

Are you highly paid? If you are making more than others at your level, you’d better make sure you are delivering more than others or you will be the first eliminated.

Are you getting along with your boss? No matter what your boss says, he or she often has the final say on who stays and who goes when layoffs are mandated. If you have become a thorn in your boss’s side, for whatever reason, you greatly increase your chances of being chosen for layoff even if you’re a top producer. Having a poor relationship with your boss is the number one secret reason for job loss today.

Are you in a bad-luck department? Are you working in a department that was unprofitable or troublesome over the last year for whatever reason? If so, the entire department may be in danger of being eliminated regardless of the great job you’ve personally done. These bad-luck departments tend to be sacrificed so that key decision makers can go to their board of directors and say they’ve already eliminated areas of the company that weren’t as successful as they should have been.

The danger signs above are the most common signs to watch for, but the sad truth is that in this current economic climate amidst growing globalization, none of us are truly safe.

Strange things can happen and we can be blindsided with job loss at any time, so how can we protect ourselves?

Stay Prepared: Keep in touch with your network and make sure all contacts are up to date so you could call them tomorrow and have the help you need to get a new job. Keep your resume up to date and ready to go.

Make a safety net: Always have at least 1 month of salary tucked away in a “just in case” fund (the actual recommendation is 3 months, but that’s not always realistic).

Plan ahead: Don’t count on a severance package to get you through. Many companies (especially those that unexpectedly close their doors for good) are opting to skip the generous severance packages that were once the standard. Take a little out of every check to set aside for an emergency fund so you don’t go into debt at a vulnerable time and you don’t have to go into a job search feeling (and sounding) too desperate.

Get out there: Start looking the moment you see the writing on the wall. If you start to see 3 or more danger signs, dust off your resume and get out there immediately. Don’t worry about potentially misjudging your company’s stability. If you were wrong about being in danger and get another job offer, your company will make a counter-offer to keep you (more money!). You can’t ever hurt your career by finding another job. In fact it can make you look ten times more appealing to your company when they have to make a move to keep you. And, if you were right about the stability of your company and jumped to another company in the nick of time, you’ve just saved your career and possibly someone else’s job in the process.

Remember, it’s ten times easier to find a job when you have a job. Psychologically, hiring managers want what others want; they like to feel they’ve stolen the best candidate from another company, not that they’ve plucked the best candidate from the unemployment line.

Those who are able to job search while still employed are usually hired more quickly for substantially more money. The last thing you want is to be out there looking for a job with all the other millions of unemployed people right now, so read the signs and start looking if you start to see danger signs.

Looking for insider secrets to maximize the success of your job search? Shapiro’s latest book: What Does Somebody Have To Do To Get A Job Around Here? 44 Insider Secrets That Will Get You Hired will be out in April of this year. Cynthia Shapiro is a renowned career expert, job search consultant and best selling author. If you believe you might be in danger of a layoff and need guidance, or if would like to supercharge your job search, contact Cynthia Shapiro at 800-888-0528.

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