The angst that comes from losing a job is the first sign an individual needs to step back and think clearly, job counselors and other experts who help the unemployed say.
Waiting for the ax to fall is one of the worst things to do in a crumbling economy and thinning job market, but not as bad as sitting around pouting after the deed is done.
“Even though many people know in their heart that a layoff is a possibility, they still ignore it because they hope it won’t happen,” said Gordon Miller, executive vice president of Dovetail Solutions, which coaches executives. “They think if they don’t deal with it, it will simply go away.”
Then when it does happen, they’re unprepared for what follows: a process of emotions that run from shock and denial to anger and despair.
And all the while the displaced worker is out of a job.
“It will take from six months to a year to find comparable type of work and many people just aren’t prepared for that,” said Steven Levey, chief executive of GHP Horwath in Denver. “And even if they do, it most likely will not be comparable pay.”
Here are a few ideas experts suggest for dealing with a layoff or, in some cases, preparing for one.
• File for unemployment. The state benefit is calculated using a formula, and payments are determined from the day you file. Expect a three-week lag for the first check.
• Review due dates on bills. Contact creditors to explain your problem. Do it before any payment is late. Consider interest-only payments such as on mortgages. In the worst scenario try for a consolidation loan to reduce creditors to one.
• Check for insurance. Many employers are required to offer Cobra plans that will allow you to continue coverage, but be prepared for the expense. Shop around for a better price, such as at Blue Cross and Blue Shield.
• How is your money spent? Many families have no clue. Inventory where it goes and begin a conservative plan to cut back. Engage the whole family in the decision on where to cut.
• Consider a home equity line of credit. If you feel a layoff is imminent, a line of credit now is a good idea, Levey said. “To the extent your home values are good and you have good credit, draw it down,” he said. “The interest rate is nothing considering what you’ll earn holding it in a bank.”
• Be cautious about offers to work at home. Not all are legitimate and those that require an up-front fee deserve heightened scrutiny. Check with the Better Business Bureau.
• Get to work. Network with friends and colleagues. Try doing what you enjoy as a step to a new career. Read classified ads to assess the job market.
• Find the hot careers. You might fit in more than you know, said Miller. It might not be a perfect fit but try anyway.
David Migoya: 303-954-1506 or dmigoya@denverpost.com
