Every week seems to bring news of more and more large-scale cutbacks in the technology industry. Since the beginning of the year, numerous companies, including Google, Amazon, Microsoft, Twitter, Meta, and others, have declared massive layoffs, leaving thousands of skilled tech workers jobless.
Do these former workers, however, understand their rights and obligations when it comes to job terminations?
The expert HR Consultant team at The HR Suite have gone in depth to explain why these layoffs are happening and how to best prepare yourself for life after a layoff.
Why Are These Layoffs Happening?
Unfortunately, the tech industry is experiencing these widespread layoffs because the overwhelming majority of these companies had predicted growth that is currently not materializing. Throughout the epidemic, these tech behemoths would have over hired to meet the increased demand for their goods and services, but now that the market is starting to return to normal, they still have too many employees.
There has been a noted increase in enquiries and online searches for terms related to severance and redundancy payments, which indicates there are people out there who may be having a difficult time understanding what they are entitled to following a layoff like this.
How To Prepare for a Layoff
In the tech industry, things are very hazy. Usually, there are internal rumours before any official statement when mass layoffs are imminent.
The first thing you should do is update your LinkedIn profile and resume to reflect your most recent experience and abilities. Join professional groups on LinkedIn, attend networking events, and network with others in your industry to keep up to date on job openings. You’ll be able to keep up with employment openings and establish connections that could be useful in the future.
If you are able to, start saving money so you have a safety net in case you get laid off and must pay bills while you are searching for work.
Examine your spending plan and look for methods to reduce costs. To assist you in managing your finances while looking for work, think about making a budget and financial strategy.
Researching unemployment benefits and other tools that might be accessible to you if you lose your job is important.
Create a portfolio, list your transferrable abilities, and be prepared to sell yourself in an interview. To enhance your skills and increase your marketability to prospective employers, think about taking classes or obtaining certifications.
Maintaining a positive outlook will make you more adaptable and receptive to new possibilities. It’s crucial to keep in mind that throughout the entire process, layoffs are an unfortunate but normal part of the business cycle, and that many, if not most, people effectively transition to new roles after a layoff.
How to negotiate a Severance/Redundancy Pay
It’s crucial to comprehend the company’s policies and practices for layoffs and severance before discussing your severance pay. Usually, the employee handbook or the HR staff can provide this information.
Every organization is different, so it’s important that you get the right information for your position and your business. Understanding the company’s policies will help you understand what you are entitled to and what to anticipate.
Review your job contract carefully now to understand your responsibilities and rights if you have one. There may be particular severance pay clauses in your contract, stating things like how much you are entitled to and when.
When discussing a pay-off, it’s important to argue your case and emphasize your accomplishments and value as a team member. Make a list of your contributions and accomplishments, including any projects or initiatives you have spearheaded, significant business deals you have completed, and any savings or income you have brought in for the company.
Continue to act in a respectful and competent manner at all times. Although it might be challenging at times, try to keep a calm and level-headed attitude. Avoid making demands or giving ultimatums. Keep in mind that you want to find a solution that works for BOTH parties and is equitable and reasonable.
Consider hiring an attorney or booking a session with an employment law consultant if you’re having trouble coming to an understanding about your severance compensation or if you think your rights have been violated. An advocate can represent you in negotiations and assist you in understanding your legal rights. They can also assist you in determining whether you have a case against the business.
Be aware that the process of negotiating a severance package can be difficult and, in some instances, very time-consuming. Having a clear understanding of your rights and obligations, as well as a reasonable expectation of what to anticipate from the negotiation, is always a good idea.
What are the next steps?
The use of your severance pay can vary depending on your individual circumstances, but it’s important to have a plan in place for how you will use this money. One option is to use your severance pay to cover your basic expenses while you search for a new job. This may include paying your rent or mortgage, utilities, shopping, and other necessary expenses.
Another option is to use some of your severance pay to pay off any outstanding debts or loans that you may have. This can help to reduce your financial burden and give you a fresh start as you begin your job search. You may also consider using some of your severance pay to invest in your future, such as furthering your education, starting a new business, or investing in a retirement account.
Whatever you decide to do with your severance pay, it’s important to use it wisely and make the most of this opportunity to secure your financial stability and future success.
The HR Suite have been providing HR Support and advice across Ireland for almost 20 years. Whether it be HR Courses, HR Outsourcing, Employment law consultations or Recruitment Process Outsourcing, the HR Suite team are the go-to when it comes to HR.