What Should You Do If You Lose Your Job – The Necessary Steps

Severance

The more senior you are and the more time with the company, the greater may be your severance.  It is my experience that those earning over $300K and with at least two years with the company can negotiate one year’s salary plus benefits plus options.  Those earning more and with more time under their belt can sometimes capture two years severance.  However, beware that bonuses are trickier to negotiate – if you are no longer there to earn them. 

A non-compete requires the employer to pay your salary during the period.  This can often backfire as it can lead to complacency and a false sense of security and make it more difficulty to re-enter the market – unless of course you move into a different industry.

Outplacement is often provided by the employer . . . to smooth the exit.  However be aware that there are three very large firms providing these services- temporary office accommodation, a phone service, resume and letter writing help, “counseling,” etc.  Find out how they differ.  It is my opinion that most senior executives have home offices and do not want or need to commute to a center point - the outplacement office – each day.  Therefore, find out what the outplacement services comprise.  You may wish to use the money allocated to the outplacement company to some other firm, perhaps a marketing company.

Remember, once you have finished your exit negotiations and signed off, you can not go back and renegotiate the conditions.

Credit Cards

You will need to make sure you have enough credit available – if needed – to tide you over a period of unemployment.  Make sure that, should you fear for your future employment, that you capture as much as possible.  This is easier to do while still employed.

References

References are part of your network.  You may chose four or five but there would be no harm in asking 10 or 15 - “Jim, we have no known each other for a number of years and I would like to ask a favor – would you be prepared to be a reference for me. I will of course tell you before who will be calling and when.” Invariable, Jim will counter by saying – “what would you like me to say about you.”  Here is your chance to have a third party reinforce your accomplishments – so much more powerful than you saying it.

Support 

You will need, as well as the obvious support from family and friends, a trusted person who can review what you write and say and make sure you stay on track.  What is most often neglected and ignored is the information you choose to give to a potential employer and the resulting perception they might have of you.  Remember to give only that information you would want to have if you, hypothetically, were in the other person’s position.  That, after all, is the art of negotiation.

Networking

Your contact base should know about your availability.  Don’t hide the fact that you are looking.  Many believe that networking is the best way to find your new job.  This can be far less threatening if you approach the task with a very brief letter:  “Jim, as you may know, Consolidated Industries has had a major cutback and I am now in the job market.  I would like to ask you a favor - and I am not referring to United Industries, your company.  Your eyes and ears are closer to the ground than mine.  Perhaps in your travels you might come across a company in the industry that could benefit from my international experience.  I enclose my business card where you will find my Web Portfolio (my resume on the web). Any ideas you have would be greatly appreciated.”

What Marketing Tools Will You Need

A resume which separates you from all the others, appropriate letters, access to data banks (Recruiters Venture Capital, and Private Equity firm, US and Foreign Corporations with operations in US) as well as specialized listings (e.g., Top Solar Energy Companies).

The resume should not be used as a marketing tool – it should be offered only when requested.  A one-page letter - if properly and persuasively written - should serve as an opener. 

Example from a client of an email exchange November 17, 2008:

Client receives an email from Vicki responding to his letter and which

requests a resume be sent: “Vicki, thank you for your note.  My resume is attached.  Please let me know if it is possible to schedule a call with

Mr. Balham.”

Vicki writes back:  “Thank you for your quick response. I have forwarded your

resume to Brian Smith, our Vice Chairman.  He will be the one that you will most

likely be speaking with first.  I will let you know when he is available.”

Elevator Speech: You will need to prepare your one minute elevator speech, “Tell me a little about yourself”

You will need a business card with your phone numbers and the web address of your resume.

Finally

You will need to maintain your confidence and enthusiasm.  I coach my client to believe that a potential hiring company is very fortunate to be meeting you, that you have unique talents, unique experience and can make a value contribution very quickly.  In fact I like them to rehearse the following statement:  “If I were to join your team Mr. Brown, I could do three things for your company.  First, I could ???   Second, I could ???? and Finally,  I could  ????   I have done it all  before as my previous CEO will be happy to confirm.”