Layoffs, the new normal: Here's how to survive them

TCS, Microsoft, Meta, Google, IBM... Layoffs have ceased being headline news; they have almost become a norm. Besides IT, layoffs are happening in the media, finance, and manufacturing sectors; no area seems to be safe.

Automation, cost-saving measures, and changing global economies are altering jobs.

So the big question is: how do you financially protect yourself during this career crisis?

Emergency Fund

Emergency Fund should be one of your career assets planned from the very beginning of your professional journey. A major defense line which is put against any financial difficulty. Financial experts recommend maintaining between 6 and 12 months of necessary living expenses. At least, have emergency funds for 6 months if you don't want to save for 12 months.

It does not matter if you have so much money in your account or if you have that money as PPF, this is the best way to put emergency funds in your account.

Health Insurance

The Health Insurance which you get when you become a part of a company saves you and your family from a health emergency. And the best thing that you lose is not the salary but the Health Insurance. Therefore, if you think that you will be made redundant, you would better have a health insurance.

It will be easier for you to get a good health insurance deal as they are GST-free, and you will be able to cover your entire family.

If only temporary health insurance for the period of job searching is for you, then there are options of limited coverage compared to comprehensive plans and short duration of 3-6 months.

Life Insurance

If you have a lot of responsibilities such as your parents, wife, and kids are completely dependent on you, and you are the only person who is taking care of your family financially, then Term Insurance is a must-have for you.

If you don't have it, then plan to acquire it as soon as possible.

Moreover, a few employer policies may also offer you the chance to switch over to high premium individual plans.

You can also get independent coverage.

Retirement savings

To make sure that both you and your family are well taken care of after your retirement, you have to start investing for your family from the very beginning. You may ask, 'what about tomorrow?', but when you will receive a huge amount after your retirement, you will find yourself happy that you made the correct decision at the right time.

In case you are laid off, you are allowed to take out 75% of your Provident Fund (PF) amount after one month of employment not counting 1 month salary and the rest 25% may be withdrawn only after 2 months of not having a job.

Budget Planning

After layoff the most valuable things you still own are your savings, and it will be difficult for you to save your money to last if you don't use them wisely. No one would want your unprofessional behavior to make your money run out before the next opportunity comes.

Anyway, how can you better manage your budget? First of all, divide your expenses into essential and non-essential categories.

What are essential items like housing, food, utilities, healthcare, and minimum debt payments, and what are non-essential items like entertainment, subscriptions, and dining out.

During your unemployment, you can concentrate on your essentials and postpone your non-essentials.

Other income sources

As you are unemployed, you can take a look for sources that might pay you less money but are reliable.

For example, freelancing and part-time work.

Professional Development

While you are job hunting, you can also work on another career path which is equally good. High-value skills are the ones that are demanded the most. Such as Artificial Intelligence and Machine Learning, Data Analysis, Cybersecurity, Cloud Computing.

Extend Your Network

"They say, 'Your network is your net worth' and it is true. It amasses quickly if you are not aware and if you are aware, it has long been in your mind.

The events of layoffs can happen to anyone but if your LinkedIn is lively, if you are member of several professional groups and if recruiters and mentors know you ahead, you will come across opportunities before they go public. Trust me, those private referrals are very often the turning points of the game.