A layoff can feel like a gut punch, stirring up financial worries, health concerns, and even a sense of lost identity. With so much uncertainty, looking ahead can seem daunting. Career coach and author Octavia Goredema, whose book Prep, Push, Pivot focuses on career strategies for underrepresented women, advises taking a moment to breathe. “Pause,” she says. “Give yourself space to process your emotions.”
Being between jobs is common and doesn’t reflect your value. “This is a business decision, not a personal failing,” Goredema emphasizes. “This moment won’t define you—new opportunities are out there.” When you’re ready to move forward, follow these practical steps to manage logistics and focus on your next chapter.
Step 1: Handle Your Exit Strategically
Review Exit Documents Carefully: Expect paperwork on severance, vacation payouts, benefits, or agreements like noncompetes or NDAs. “These may be new to you,” Goredema notes, so read thoroughly to understand the terms.
Request Time if Needed: Don’t rush to sign. “You might worry that delaying could cost you money, but signing locks you into those terms,” she warns. Take time to ensure you’re clear on the implications.
Negotiate Terms: One of Goredema’s clients missed a chance to extend health benefits by signing too quickly. Ask questions and explore what’s negotiable, like severance or benefits timelines.
Seek Legal Advice if Necessary: If you suspect wrongful termination, consult an employment attorney. For a fee, they can assess whether your rights were violated and guide you accordingly.
Step 2: Secure Benefits and Healthcare
Apply for Unemployment Immediately: This state program provides weekly payments based on prior earnings if you were laid off through no fault of your own. “It can be a financial lifeline,” Goredema says. Check your state’s program details, as most offer up to 26 weeks, though states like Arkansas or Florida may provide less.
Explore Additional Benefits: You might qualify for food assistance or free job training. Use online benefit finders to identify available programs.
Find Healthcare Options: If you had employer-sponsored health insurance, COBRA allows you to continue it for a limited time, but “it’s often costly,” Goredema cautions, requiring you to cover the full premium plus a 2% fee. Alternatively, explore Health Insurance Marketplace plans in your state or programs like Medicaid for low-income individuals.
Step 3: Strategize Your Job Search
Reflect on Your Goals: Think about your last role—what worked, what didn’t? Define your ideal next job, considering factors like salary, company size, location, or work type. This clarity will guide your search and help you evaluate offers, Goredema says.
Estimate Your Job Search Timeline: Base it on how long your last job search took, adding a buffer of one to two months. “If your industry is facing layoffs or high competition, plan for extra time,” she advises.
Step 4: Build a Financial Plan
Create a Budget Based on Your Timeline: If you expect a six-month search, divide your savings, severance, unemployment benefits, or other income (e.g., from a partner) across that period. This keeps you financially stable while you search, Goredema explains.
Step 5: Prepare for the Unexpected and Dream Big
Have a Backup Plan: If your job search takes longer than planned, consider alternative income sources like gig work (e.g., food delivery, dog walking) or temp agency roles. “These can bridge the gap while you keep looking,” Goredema says.
Embrace Flexibility: Needing a backup plan isn’t failure. “In five years, you’ll see this as a time you solved problems creatively,” she reassures.
Reimagine Your Career: Use this moment to explore passions or hobbies you’ve sidelined. Goredema recalls a client who, after multiple layoffs, left graphic design to start a gardening business. “He’s thriving and hasn’t looked back,” she says.
A layoff is a setback, but it’s also a chance to pivot toward something better. Take time to process, then act methodically: review exit terms, secure benefits, plan your finances, and approach your job search with intention. Whether you pursue a similar role or chase a long-held dream, this transition can lead to unexpected opportunities. Stay resilient—your next chapter is waiting.