Moving Forward After Being Let Go - What To Do When You Lose Your Job
As 2022 draws to a close, companies and firms are facing strong financial headwinds that are putting pressure on them to make cuts in personnel. If you have been told or are concerned that you may soon be told by your employer that you are part of these reductions-in-force, you are not alone. Employees across almost every industry, and at varying levels of experience and seniority, are hearing similar news.
In many cases, employees are hearing that they are being terminated due to the bigger economic picture – maybe resulting in elimination of a product line or closure of an office location – even though in prior years a similar level and caliber of work would have insulated them from such circumstances. If you’re in this situation and grappling with what to do next, focus first on a few immediate steps that can help you best position yourself in a new job search.
Carefully review and evaluate the terms of your exit
Some organizations, including law firms and professional services firms, often offer professionals a severance package in exchange for signing a termination agreement, which often includes a non-disparagement clause. If you are offered one of these agreements, it’s important to review it closely and evaluate whether the terms suggest any reasons for concern or opportunities that you may appreciate. Once you sign the agreement, you will almost certainly have waived any rights to challenge it or clarify it with your employer. You may also want to consult a lawyer regarding the terms of the specific agreement offered to you.
Severance agreements frequently will not give a reason for the termination. Instead, the employer’s human resources department is likely, if asked by a third party, to simply state the dates of your work at the company and your titles during those dates. That is helpful to you to the extent that it suggests your employer does not want to disparage you if asked about your time at the company. In an economic environment with job cuts across companies and industries, employers are often reluctant to suggest that a sizeable layoff was due to poor performance, as that could reflect negatively on the employer’s management of its workforce.
Conversely, other terms of a separation agreement may be less palatable. For example, you may want to consider whether there is any ability to negotiate the amount of severance pay, the period of time that your name will remain on your firm’s website, or any outplacement counseling or services that the employer may make available. You will also want to clarify how you are to handle submission of any outstanding reimbursement expenses, management of your existing workload, and transition of any matters. Additionally, if you have non-compete clauses as part of either your employment agreement or your severance agreement, you should consider how those may impact a job search and see if your employer is willing to address them. Because in the US the law regarding non-competes is also very unique to each state, and can be quite complicated, you may want to seek an attorney’s opinion as to enforceability.
Secure references from people that know your work well
Lining up trusted colleagues or supervisors who can be references for you is critical, especially before your exit date with your employer. People that can attest to the caliber of your work and the contributions you have made are invaluable in helping you make the case for yourself to a potential new employer. They provide evidence beyond your own statements about why you would be a good fit for a job, and give someone a good basis to hire you even when you were let go from your last role.
Assuming neither the terms of the separation agreement nor company policy prohibit your co-workers from serving as a reference for you, you should reach out to potential referrals as soon as possible and ask them if they would be willing to speak for you with a potential future employer. People get busy, and your ability to connect with them may be more challenging once you have departed the company. Connect with potential referrals before you leave and thank them for what you appreciate about them as a colleague, supporter or mentor. Thus, when you do need a reference, it will not appear that you are asking out of the blue for a favor from someone that you didn’t take the time to appropriately engage with before your departure.
Clients and former colleagues working at other companies are also potential references, including if you have a good relationship with them, such that you would like to work with them in the future or even to seek a new role within their company. Be prepared to explain, however, why you are leaving your current employer, and ensure that your explanation fits within the parameters of any nondisclosure restrictions of your severance agreement.
Update your employment status with professional groups and on LinkedIn
If you haven’t checked that LinkedIn profile in a while, or are affiliated with a licensing or regulatory association, make sure you update your employment status promptly with those sources after you leave your employer. It’s easy to forget that your LinkedIn experience section lists your employer and your title as being current. Just make sure you put an end date on your time at the company as soon as you depart. That way potential employers who are checking your employment history won’t see a disconnect if they look at your profile and it suggests that you are still working for a firm from which you actually separated some time ago. Similarly, take the time to update any professional organizations, such as bar associations and licensing authorities, so that your current contact information is accurate.
On occasion, you may also find that your prior employer, despite having let you go, still lists you on its website as being a member of certain committees, in a leadership role, or even still posts your bio. To avoid any confusion, or suggestion that you or the prior employer are misrepresenting your status, you should contact the company to ask that the information be corrected or removed. It’s fine, of course, for articles you wrote or similar historical information that was added before you left the organization to remain on the company’s website. Your priority is simply to ensure that your current status is truthfully reflected in the company’s materials.
Be prepared to explain why you left your job
It’s never easy to say that leaving a job was not your choice, but you want to be prepared with a concise, truthful, and thoughtful explanation for potential future employers, as well as people that you may be networking with to find new opportunities. Of course, this explanation should also be consistent with what your former employer would say if contacted, and any restrictions imposed by your employment or severance agreements. That said, if your employer is only providing dates and titles during your period of employment, you obviously need to provide more information to a potential employer unless you are restricted from doing so. You want to outline why you have lots to contribute at a new employer and what were your strengths in your work at your prior organization.
You should be honest that you were let go by your employer, but give additional, truthful context about what happened and use appropriate descriptions. For example, a possible statement might be something like: “My firm made significant cuts due to economic issues similar to those confronting lots of businesses right now. My clients were impacted severely by supply chain issues and inflation, and that led to fewer engagements for me with them and less revenue for my firm. I recognize that the firm had to make tough decisions, including to part ways with me.” Avoid being negative or going into unnecessary details; you don’t want to disparage your prior employer.
Instead, you should focus on how you can illustrate what your previous experience can bring to a new employer, as well as your strengths and accomplishments in your prior role. You might seek to explain how you were key to your prior firm’s success with a portfolio that the potential employer is looking to expand or which would benefit from your subject matter expertise. If you can, make a point to note that you have references at your prior company that can speak directly to the skills you bring.
Practice these explanations and statements so that you are comfortable and at ease delivering them before you share them broadly with potential employers or your larger network. You may initially need to work to hone the message you want to deliver, and even test it with some trusted friends, advisors or a coach to get their reactions.
If I can assist in helping you to manage your exit and job search, please reach out to me to discuss. Contact Laura