How to prepare for a potential layoff
Have you seen the reports indicating that women are affected more by tech layoffs? What about all the DEI initiatives by the very same companies? There’s a pattern emerging from layoffs that undermines all the efforts made so far.
Well, until companies begin to address this inconsistency, what can we, as individuals, do to prepare for a possible layoff in the meantime?
We all know layoff systems, as well as other systems like recruitment or promotions, are not perfect – and cannot be perfect. There is no 100% objectivity in human-related systems. Even if you do everything right, you might face undesired outcomes. Make sure your well-being comes first, even during these tough times — or, to put it more accurately, especially during these tough times.
Let’s move on to the suggestions!
As an employee, there are a few things you can do internally:
Be part of revenue-generating or cost-preventing teams.
Engage in key initiatives focused on efficiency or core business rather than risky bets.
Increase visibility to senior management and demonstrate a business mindset.
There are also things you can do externally:
Begin practicing your interviewing skills before you need them.
Strengthen your external network.
What do we mean by those, and what are the specific actions we can take? Let’s have a deep dive:
Begin with a risk analysis
If you want to develop a strong strategy, it’s better to start with a thorough analysis of your situation. Do you know what kind of team you're a part of? Is it a cost center for the company, meaning that your team may not directly generate revenue, or is it a high risk/low reward type, a team that makes sense only when there are abundant resources and time but currently lacks foreseeable revenue? If you find yourself in such a team, it’s time to acknowledge that you might be in a high-risk team.
Next stop in our analysis: Are you part of cross-functional initiatives, and if so, what kind? Cross-functional initiatives are a vital way to expand your impact within the company. When you're involved in them, and even better, when you're leading them, you're no longer just an employee handling one small aspect of the organization. This makes you less replaceable. However, it's also crucial to consider the type of initiative you're involved in. Is it another high risk/low reward endeavor that made sense when the company had abundant resources and time to wait for results, or is it an initiative crucial to the company's core business or with high prospects for revenue generation? If you're in the second group, then you have an advantage.
Here comes the final stop: How visible are you to senior management? Remember when we said there is no 100% objectivity in human-related systems? One thing we've learned from recent tech layoffs is that decisions are made by senior management without involving direct managers. It’s possible that someone who is 3 or 4 levels above you will be the one making the decision. In that situation, it doesn’t matter if your direct manager thinks you're one of a kind.
You might be asking - what about my former performance reviews? Sure, they wouldn’t hurt, but they’re also not a ticket to a safe place. Most companies cannot base their decisions solely on performance because then it might lead to legal issues, such as whether this person was informed beforehand and was part of a performance improvement plan or not. Performance can still be a factor, but companies prefer to focus on more organizational aspects.
However, we're still human beings. There’s always conscious or unconscious bias at play. It’s harder to be objective when we can put a face to a name. It’s also why remote workers are affected by layoffs or receive fewer promotions. So, think about what kind of visibility you have within the senior management group. If you have zero visibility, you might be in the risk group depending on other factors. Consider whether there is a meaningful way to increase your visibility.
Everyone’s situation is unique — their risk profile and potential actions as well. The key is to conduct an honest analysis (no sugarcoating but no jumping to worst-case scenarios either) and create a plan that suits you best — which brings us to the next part.
After understanding where you stand from a risk perspective, here are some actions you can take:
Play your cards right
Is moving to another team still a possibility within your company? If so, it's time to expand your internal network! Of course, talk to recruitment and HR teams, but more importantly, engage with peers from other teams. Learn about their roles and responsibilities, and ensure they also get to know you. Keep an eye out for potential openings in low-risk teams. Consider getting involved in key initiatives within the company. If none of these options are available, consider (perhaps with your team) whether there's a better way to align the team's scope to contribute more directly to revenue (or cost saving) for the company.
Don’t put all your eggs in one basket
When times are uncertain, it's time to test the waters. Explore what job opportunities are available and assess the strength of your interviewing skills. Remember, interviewing is a distinct skill from your job-specific abilities. If it has been a while since you last interviewed with a company, consider applying to some jobs and practicing your interviewing skills. This way, you'll be better prepared for any future job searches.
Start by conducting brief research on the common interview steps and questions before attending any interviews. Initially, apply to companies that are not at the top of your list; you'll want to reserve your top choices for later, once you've honed your interviewing skills. If you need assistance with this, you can always leverage your MONA membership benefits, and we can develop a plan together.
Time to find out what’s happening in other companies
There is no better time to start connecting with your friends, ex-colleagues, and acquaintances in your region. You don’t have to have a hidden agenda, nor do you need to ask for a job. Just think of it as a genuine catch-up, to hear how things are going on their side and share how it's going for you. A support system is important, not only when you’re unemployed but also during uncertain times. Knowledge is power—and so are connections! Having these conversations will help you understand the current market better and prepare you mentally for the future.
These are tough times, but humans are known for being very resilient. Breathe. Cut through the noise. Focus on the things you can control instead of worrying about the ones you can't. You've got this.