From Laid Off to Lemonade: A Map to Get Back on Track

by Dawn Papandrea

In today’s economic climate, there’s a good chance the inevitable could happen to you, your spouse, or someone you know. No matter how safe you feel your job is or how many years you have invested, no one is immune to getting the pink slip. Johnny Lemonade can attest to this lesson learned firsthand.

Just nine short months after he was wooed by a Los Angeles-based luxury company to leave his Miami home and go work for them – all relocation expenses paid, great salary, great benefits, the works – he received the dreaded phone call that his job was coming to an end. With the cost of living in Los Angeles being so much more than in Miami, Johnny Lemonade and his wife (who now had to give up her LA-based job) decided to head back home, both unemployed.

“Luckily I was able to negotiate a re-relocation package, which is really unheard of,” says Johnny Lemonade. “They paid for everything to be moved back.” Although that was taken care of, Johnny Lemonade felt overwhelmed and couldn’t focus. “We decided to just get in the car, drive cross-country, and clear our heads. It would be therapeutic.” They drove for about 10 days, stopping at the Grand Canyon; skiing in Taos; and visiting an old high school friend in Texas.

“What I learned from this experience is that it’s easy to lose focus and get down,” says Johnny Lemonade. “When you see bad news after bad news in the newspaper about unemployment being at an all-time high, it’s just so discouraging. Those are the times you need to stay calm, cool, and collected.”

And so, LemonadeIt.com was born…

“I wanted to create a portal that helps recently unemployed folks. Let’s gather everything we can and put it under one roof. I wanted to do something that was going to bring people hope… let people in this situation know there are so many people out there in the same boat. We’re all in this together.”

Whether you’re blindsided or you know it’s coming, getting laid off is becoming a harsh reality for more and more workers. To get through it, rely on your family and friends for support, as well as LemonadeIt.com’s ultimate layoff checklist… 


What to Do When You Get the News

Emotions will run high. Panic might set in. But before you do or say something you’ll regret later, take it all in, and then put together a game plan for moving onward and upward.

Make a timeline. How long will severance pay run? When do you need to enroll in COBRA coverage? When can you sign up for unemployment benefits, and how soon after that will they start? Get out a handy calendar and notebook, and start mapping out a game plan. Missing such deadlines can cost you money and result in a lot of red tape tangles.

Go over your severance package with a fine-tooth comb. Don’t just rush out the door even if your instinct is to get away from the people who fired you ASAP. Take your time going over any severance package materials to be sure you understand it all, and if not, ask your HR person to go over it with you. After all, your former employer owes you at least that much.

Take what you can get, then ask for more. Your layoff package is not necessarily set in stone, meaning you’ve got nothing to lose if you ask for better terms. Use your negotiation skills to ask for an extension of benefits and/or income.

Get your references lined up. Before you clear out your desk, don’t forget to ask higher ups for letters of recommendation. It will be harder to pin people down once you leave (not to mention that they may be let go on the next round of layoffs). On that note, ask if they wouldn’t mind giving you their personal email addresses in case you need to get in touch.


Money Matters

The most frightening aspect of being laid off for many people, especially those supporting families, is losing your financial stability. Start taking measures right away to curb spending, generate income, and protect your investments.

Your rainy day has arrived. If you haven’t thought about how to reduce expenses before, now is the time to start implementing some frugal living. Sit down with your family and have a serious discussion about cutting back your expenses. It will take some sacrifices from everyone, but little strategies (like cutting back on luxuries like cable TV or giving up your weekly manicures) add up.

Contact your financial advisor. Wondering what will happen to your 401K? Call your financial advisor, or the company that maintains your portfolio, to discuss your options. These can include rolling it over into an IRA, or simply leaving it be. Unless you’re in dire straits, you’ll want to try to avoid cashing it out since you’ll be assessed a hefty tax penalty, and may never get around to replenishing it.

File for unemployment – don’t hesitate! Keep this important tidbit in mind: You qualify for unemployment even if you are receiving severance pay! If you’re in a high unemployment state, the recent economic stimulus package has added up to 20 additional weeks of unemployment benefits. LemonadeIt.com offers a directory of state unemployment offices. These should be among your first online clicks – many of them even allow you to apply right online.

Health Insurance

Second to not having steady income is losing your health benefits. How can you ensure that you’ll be covered – and be able to afford that coverage?

Get a COBRA clue. Here are the facts: If you had health insurance with your employer, you will be offered the option to continue those benefits for up to 18 months through COBRA. And with the new stimulus package, you may be eligible for government-subsidized COBRA rates up to 65 percent for up to nine months. Review the costs of COBRA versus obtaining an independent plan through a local HMO or PPO provider.

Get some spousal support. If your spouse is still employed and the employer offers insurance, the loss of your job is a triggering event that would enable you to enroll in your spouse’s insurance plan as long as you do so within a specified time frame from the date your job ended.

Checkup time. If part of your severance package includes an extension of your health benefits, be smart and get in all of those doctor appointments and checkups you’ve been putting off. If you’re due for your yearly physical or have prescriptions to fill, get going before your coverage expires.

Emotional Coping

Everyone will handle a layoff in his or her own way. For Johnny Lemonade who was taken by surprise, it was taking a couple of weeks to clear his head and realize his vision. However you choose to cope, remember that it’s a healing process.

Reward yourself. You know how you’ve always dreamed of having more time to spend with your children, spouse, or friends? Now is your chance. You could and should take advantage of your extra free time – one can only job hunt so many hours a day.

Do something you’ve always been too busy to do. Pursue that hobby that’s been on the back burner, and meet people who share your interest. Who knows, as your interest develops, it may even result in a new career direction for you.

Connect

While posting your resume to job boards can be helpful, the majority of your time should be spent making personal connections with anyone and everyone you can.

Strengthen your bridges. Bad-mouthing your former boss is foolish and counterintuitive. Instead, take the time to compose personalized thank-you notes to all of the colleagues you’ve learned from or enjoyed working with. You’ll leave with your dignity and benefit in the future should you ever cross paths with former co-workers again.

Say yes to help. Despite any bitterness a layoff may bring, if you’re lucky enough to be offered any sort of assistance program or outplacement counseling by your company, take advantage of it. You may also find support via professional associations, local employment offices, your college’s alumni network, and online. Seek out help, and you shall have it.

Tell people how to reach you. Leave a voice message on your work phone with a forwarding number and e-mail address so people can find you. While you’re at it, create a free e-mail account using some variation of your name (stay away from unprofessional handles like hotmama47) via Gmail or Yahoo! so you have new contact information to share with your e-mail network.

Create good career karma. Whenever you can in your career life, pay it forward. Those who enjoy the best success do so by bringing others with them. Toward that end, when tapping your network for job leads or an introduction, be sure to ask how you can return the favor. Networking is a two-way street.

Harness the power of the Internet. If you’re not already on social networking sites, it’s time for a crash course. School yourself on platforms including LinkedIn.com, Twitter.com, and Facebook.com, all of which are becoming an increasingly popular way to market yourself and meet potential employers.

Job Searching

What’s up next for you? It’s time to start pounding the pavement. Ask friends for resume and cover letter help, and open your mind to new opportunities.

Test out your interviewing skills. Has it been a while since you were on the hunt? Be sure to brush up your interviewing skills before you go for your dream job. Get a friend or colleague to ask you mock questions, see if there’s a free workshop in your area, or go on some low-level interviews that you don’t necessarily care about just to practice.

Be curious. For many, being let go is the perfect opportunity to change career directions. Informational interviews are a wonderful way to learn more about a new industry and make connections, and many professionals are more than willing to meet with you.


Feel a bit more empowered now? That’s the goal of this site, but it doesn’t stop there. What happens next is up to you! “Look at the big picture and build a strategy,” says Johnny Lemonade. “If everyone’s running for the same door, take a look to the right or left of that door, and there may just be another one that no one’s going through.”