How to Take Advantage of Layoffs: In discussing how to survive layoffs, we noted that employment in the financial services industry is highly cyclical. Accordingly, people working in this industry always should prepare for the contingency of significant force reductions and job cuts, either in their present firm or, as is more likely, across the entire financial services industry.
Moreover, the issue is not confined to the financial services industry, but instead is reflective of all industries. The concept of lifetime employment, or something approximating it, began slipping into historic memory as far back as the 1970s in the United States. In that era, only a relative few observers began to recognize that, over the course of his or her lifetime, the average working person would expect to change employers and/or career paths at least once a decade, if not more frequently.
In most discussions about dealing with layoffs, the usual premise is either that you seek to hold onto your current position, or that you want to remain employed at your current firm, with no reduction of rank and pay. Less remarked upon is how you can take advantage of layoffs, and use them as part of your career management strategy. Follow these case studies for examples of how the threat of impending layoffs can spur hitherto passive employees to begin actively marketing themselves and, perhaps, improving the trajectories of their careers in the process. Additionally, these studies indicate how the financial incentives associated with voluntary force reductions can serve as an added bonus for people on the move.
Case Study: This writer profited from layoffs three times in his career, and these unexpected events had a major impact on his career path. Follow the link to see this illustrative case study.
Evaluating Severance Packages: A key consideration in deciding whether to accept a severance package (sometimes also called a buyout) is the most likely outcome if you choose to decline the offer and keep your current job. There are many possibilities. One is that there might be subsequent rounds of involuntary layoffs, each on increasingly less generous terms. Another is that your firm might be reducing headcount while not eliminating job functions, tasks and responsibilities. Under this scenario, those who remain on staff in the wake of a layoff are bound to see their workloads and hours increase, perhaps significantly, but without an increase in compensation. Additionally, if the force reduction is designed to reduce one or more layers of management and thus streamline the organization, those who stay behind may see their opportunities for future advancement decline significantly.
All these considerations are in addition to the basic questions about the attractiveness of the financial package itself, and the likelihood that you will land a suitable position at another employer if you accept it.
Conclusion: For those contemplating changing employers or setting new directions in life, layoffs actually can be advantageous, especially if they come with generous severance benefits. In addition to the personal case studies related above, I can offer similar ones involving other people. The key, however, is that before taking a severance package and leaving your current employer, you should have a firm commitment to be hired elsewhere, or to embark upon your next role. Even then, be cognizant of the risk that the new job offer might be withdrawn (see our discussion of contingent job offers) after you have irrevocably resigned your current position. Additionally, once you have joined your new employer, your lack of seniority may place you at particular risk if layoffs hit there, especially if you do not have an employment contract that protects you against this eventuality.
