You can take proactive steps to layoff-proof your career.
According to the most recent survey from the Federal Reserve Bank of New York, the percentage of job seekers in the last month rose to 28%. That’s the largest share since 2014 and a nearly 10-point increase from the same time a year ago. The spike isn’t surprising, given recession fears and the steady stream of job cuts across multiple industries. With employees feeling uneasy about potential job losses, particularly in the tech industry, many ask themselves how to prepare for a possible layoff.
There’s an important distinction between being laid off and being fired. A layoff refers to terminating a person’s employment for business reasons. Layoffs (also known as downsizing or a reduction in force) typically happen when companies decide to change business direction or cut costs. In contrast, an employee who is fired is terminated due to poor performance, theft or some other fault of their own.
Layoffs have become more common over the years and can happen to anyone at any time. While you can’t prevent cutbacks at work, you can prepare for the unexpected. Let’s explore some proactive steps you can take to mitigate the risk.
Learn To Be Financially Savvy
While financial acumen is a critical skill, many Americans lack the basic knowledge needed to create a secure future. One valuable barometer of personal finance knowledge is a series of questions given annually to American adults known as the P-Fin Index. According to the 2024 report, US financial literacy has remained around 50% for eight consecutive years, with a 2% drop in the past two years. To layoff-proof your career, invest in becoming financially savvy. Take advantage of free resources like books, video tutorials, webinars and podcasts. There are even helpful apps like Zogo, Investmate and FamZoo that can help you become more knowledgeable about money. For free financial advice, reach out to your bank or credit union. If you have a retirement account, the provider may also provide educational materials. Finally, check in with your employer’s HR team. More companies are offering financial wellness benefits because they realize they empower employees and make them more productive.
Create Multiple Income Streams
To layoff-proof your career, it helps to diversify your income sources. One of the easiest ways to earn additional income is by offering coaching or consulting services. Another idea is to establish yourself as a thought leader by writing books, starting a blog, creating a podcast or taking on speaking engagements. Consider turning a hobby, like photography or cooking, into a side business. Once you have some savings, investing in real estate via rental units or property appreciation may be a lucrative source of passive income. By investing in multiple revenue sources, you reduce the risk associated with relying on a single paycheck. This approach also offers a way to reach your financial goals much quicker.
Increase Your Visibility
You can’t count on your achievements to speak for themselves—especially in a competitive labor market. It’s up to you to promote yourself and your accomplishments. Don’t think of it as bragging. Instead, consider it an effective way to communicate and build relationships. First, speak with your direct manager. It’s also helpful to enlist the help of other leaders and influencers in your organization. While face-to-face meetings are effective, don’t forget to leverage other methods of increasing your visibility. For example, you can take advantage of staff meetings, emails, podcasts, videos and even Slack channels. Concentrate on your unique gifts and remain authentic so you can build trust and credibility.
Focus On Your Personal Brand
Personal branding can be a lifeline following a layoff because it allows you to showcase your skills while enhancing your professional reputation. It’s about more than just remaining visible. It’s about boosting your credibility and attracting opportunities. First, determine what sets you apart from colleagues in your field. Then, craft a brand strategy that considers how you want to be known. Define a clear niche, including a description of your target audience. At that point, leverage a storytelling approach to generate authentic content that establishes you as a thought leader. Whether you use videos, blog posts or social media, choose platforms where your audience spends the most time. Developing a personal brand requires time and consistency. By starting early, you’ll be well-positioned to withstand an unexpected job loss.
Maintain A CEO Mindset
If your identity is tied to a single employer, you’ll never be fully in control of your professional future. To take charge of your career, adopt a CEO mindset. Approach your career like an executive by assuming responsibility for your own development and recognizing that non-linear career paths are the new normal. Leverage your transferable skills to explore different roles and industries. Then, dedicate time to think about how you’d like your career to unfold. Capitalize on your strengths and identify obstacles. When you encounter a setback, view it as an opportunity for growth. By embracing change, you’ll develop a diverse skillset, leading to greater job security and fulfillment.
While you can’t control whether you experience a job loss, you can take steps to layoff-proof your career. A job loss doesn’t have to be viewed as a professional failure. In fact, if managed well, a layoff can provide an opportunity for a new beginning.