ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

With Layoffs Threatening job Security, Here's a Strategy That Can Help Employees Brace Themselves

Navigating the financial challenges of holiday season layoffs.
PUBLISHED JAN 15, 2024
Holiday Season Layoffs Pexels | By Holiday Season Layoffs
Holiday Season Layoffs Pexels | By Holiday Season Layoffs

The holiday season, traditionally a time of joy and celebration, can take an unexpected turn for many employees when the harsh reality of layoffs hits them. In recent times, employers such as Citigroup, Charles Schwab, Vice Media, Continental, and Maersk have all announced job cuts, casting a shadow over the festive season. Confronted by this new reality threatening job security, check out all the ways in which employees can brace themselves for the financial impact of job loss.

Holiday season layoffs. Pexels | By  Tim Gouw
Holiday season layoffs. Pexels | By Tim Gouw

Plans for festive gatherings and gift exchanges are overshadowed by the looming uncertainty caused by layoffs. The abrupt nature of layoffs during this time adds stress, making it crucial for individuals to be aware of the potential challenges that lie ahead.

The fear of financial instability during a time that is supposed to be joyful can lead to increased stress levels and a dampening of the holiday spirit. Understanding the factors contributing to this unwelcome trend allows employees to approach the situation with a clearer perspective.

Andrew Challenger is the Senior Vice President of Challenger of Gray & Christmas, an outplacement firm specializing in helping laid-off employees find new work. According to Challenger, there is an increase in layoffs, but a widespread panic wave akin to 2020 is not anticipated. The focus is on individual employers' circumstances, with reasons ranging from overhiring and automation to business downturns and mergers.

Understanding that each case is unique allows individuals to tailor their approach to their specific situation. Acknowledging the factors contributing to layoffs empowers employees to navigate the uncertainty with a proactive mindset.

Legal protections Pexels | By August de Richelieu
Legal protections Pexels | By August de Richelieu

Understanding the legal landscape is crucial for employees facing potential layoffs. The federal WARN Act, applicable to companies with 100 or more employees, mandates a 60-day notice for mass layoffs. These legal protections provide employees with a sense of security and time to prepare for the transition.

In addition to legal protections, severance policies play a vital role in mitigating the financial impact of a layoff. Delving into the specifics of severance packages, including average payouts, duration, and the potential inclusion of health benefits during the severance period, equips employees with valuable information.

Financial preparedness is the key to sailing past a layoff wave, and employees are encouraged to proactively check their employer's severance policy, calculating potential payouts and understanding the implications for health insurance coverage. Introducing the concept of a "noodle budget" helps individuals identify essential expenses, providing a clearer picture of financial needs during the transition period.

The "noodle budget" concept serves as a practical tool for assessing essential expenses, ensuring that individuals are well-prepared for the challenges ahead.

Financial safety net. Pexels | By Pixabay
Financial safety net. Pexels | By Pixabay

Building a robust financial safety net goes beyond understanding severance policies and legal protections. It is important to estimate monthly expenses, differentiate between essentials and non-essentials, and assess the potential impact on health insurance costs. Evaluating severance packages, unemployment benefits, emergency savings, and the feasibility of generating income through side hustles further strengthens this safety net. A well-rounded plan helps individuals navigate the financial challenges that may arise during a job transition.

By taking a thorough inventory of their financial situation, individuals can identify areas of strength and potential vulnerabilities.

Whether exploring legal protections, understanding severance policies, or creating a financial safety net, the key is to have a well-thought-out plan in place. By doing so, individuals can face the future with confidence, knowing they are prepared to weather the challenges that may come their way.

MORE ON MARKET REALIST
Robert Herjavec and Lori Greiner rubbed it in O'Leary's face by celebrating their deal with Phoozy
18 hours ago
Duc and Lisa Nguyen's stubbornness paid off, as the co-founders of Baubles + Soles got Daymond John as a partner.
20 hours ago
The player got the host to be candid about his fears and his mother's opinion on him.
22 hours ago
Justin Baer, founder of Collars & Co., was looking for mentorship from the Sharks in addition to a $300,000 investment.
23 hours ago
She said that her husband may still have to buy a dog as America may hold him accountable.
1 day ago
When Harrison knew that the 18th-century map was the real deal, he made a genuine offer.
1 day ago
10 years after her sister’s win, Chelsea Hall hit the jackpot on ‘WoF’ with a brand new Mini Cooper and a cash prize.
1 day ago
The co-founders of BuggyBeds wowed the Sharks so much, they were "itching" to invest, and offered a $250k deal.
2 days ago
The guests were left stunned to find out just how much the repairs would cost.
2 days ago
Unfortunately for the seller, she allegedly got robbed of a significant amount of money.
2 days ago
Not only did the co-creators of FlingGolf get a $300,000 deal, they proved Mr Wonderful wrong.
2 days ago
The guest never imagined the old, autographed sneakers that his mom acquired could be worth so much.
3 days ago
The gameshow whiz did it again by bagging the top prize on yet another trivia test.
3 days ago
Riccardi took to Reddit to clear the air around his stunning loss which was facing scrutiny.
3 days ago
Fans gathered on the show's unofficial Reddit forum to discuss the 'dumb and useless' items.
4 days ago
The contestant, Matt Benton expressed he wanted to enjoy the moment before thinking of the future.
4 days ago
The guest who treasured the collection had no idea how significant it was.
4 days ago
Even the contestant admitted that there was no way he could've got the answer.
5 days ago
Jennings told TV Insider that Seacrest is a generational talent and there's nothing he couldn't do.
5 days ago
The co-founders of 'Bro Glo' managed to bag the biggest Shark for their innovative self-tanner.
5 days ago