Companies across the globe are feeling the effects of the pandemic, having had to close stores, cancel projects or postpone events. As they plan for an uncertain future due to COVID-19, many are furloughing or laying off their employees until they develop and execute new strategies.
Furloughed employees are likely to return to work after some period of time, without having to go through the hiring process again. Usually, employers continues to provide them with benefits like health insurance. If you find yourself in this position, you may find comfort in knowing that it is a temporary cost-cutting measure that is protecting your job and keeping your company afloat.
Yet, you may still struggle because of the leave without pay. Unemployment numbers hit record highs in March with more than 10 million Americans filing for assistance. “Furloughed or laid-off employees still have options,” says Colleen McCreary, the Chief People Officer at Credit Karma. McCreary is currently navigating these challenges, as her role consists of strategically building and retaining high-performing teams that support the company’s growth; drive long term value for the business; and position the company competitively in the market.
I spoke to McCreary to gain insights into what newly unemployed workers can successfully pivot:
Negotiate clear terms with your employer
“Often, after having the initial lay-off conversation, you can be so shocked that you forget all the details in the moment and that’s normal.” says McCreary. “Just wait until the next day or two to ask questions with a clear mind.”
Before you sign anything, ask your employer to clarify why you are being let go and explain the separation benefits you will receive—including how much longer you will be paid; if you will receive separation pay; what benefits you will continue to have, and what happens to additional perks such as 401(k), stocks, paid vacation days, sick leave, etc.
Do your research
Unemployment compensation benefits are available to anyone who has lost their job through no fault of their own and are meant to help you make ends meet until you find a new job. The amount you’re eligible for depends on your state, so consider filing and familiarizing yourself with the process.
Furloughed or self-employed workers don’t typically qualify for unemployment benefits, but the new stimulus law recently expanded the list of people who are eligible. The stimulus adds to existing unemployment benefits and allows you to receive additional funds from your state while you’re not working.
If you exhaust your benefits and have not been able to find or return to work, the stimulus has some accommodation for an additional 13 weeks of unemployment pay after your state pay ends (most states offer 26 weeks of unemployment benefits)—in addition to the $600 provided by the federal stimulus.
Do not be afraid to use your network.
With so many people quarantined at home, there's a unique opportunity to reconnect with old friends and form new connections. As our interactions have become almost entirely virtual, prepare to schedule zoom meetings or jump on phone calls to meet new people. “This is the time to bother your network,” says McCreary. Even if a company is on a hiring freeze or doesn’t have an opening that fits your interests, you can start developing the relationship and plant seeds for when an opportunity comes along.
Moreover, being extra prompt and responsive in your digital communications will also help you find a job in the immediate future. Reaching out to people you know for opportunities will be even more crucial, explains McCreary. If you’ve been working in an industry that’s been hit hard by the pandemic, you might want to consider transferring your skills to positions outside your typical background. As McCreary suggests, “There will still be jobs available, but it’s going to be more competitive. You have to have the confidence to reach out, you have to use your leg up.”