Beating the Layoffs: II

If layoffs are likely soon where you work, you probably haven't done much about finding an alternative position. Most people don't act proactively in such situations. If you've known for some time that you should make a move to exit voluntarily, but you haven't done it, this post might help. It's Part Two of a review of some of the advantages and disadvantages of exiting voluntarily before the layoffs. Take a look at Part I.

How exiting voluntarily can be advantageous

There are two ways to exit voluntarily — with a job offer elsewhere and without. If you have an offer, you have a difficult decision to make. The difficulty arises when you've made an assessment that layoffs are looming for your current employer, because the threat might bias you in favor of accepting the offer, even when that offer might not be suitable for you. To avoid the layoff, you might value the offer more highly than it is actually due. Take your time. Consider it carefully.

In the second case, you don't have an offer in hand. Exiting your current position without an offer can expose you to many of the same risks a layoff does. But because you choose the time, you can mitigate many of those risks. And that's the subject of this post: how exiting voluntarily can provide advantages, even though you don't have a job offer in hand.

Collegial relationships

If you exit voluntarily, you can depart on good terms with your current colleagues. Indeed, if layoff rumors are already circulating, the more savvy among your current colleagues might tend to seek you out before you actually leave, hoping to ensure that you remain in their professional networks. Some of these folks hope for more — that if the worst befalls them you might provide a lifeline from whatever safe haven you will have found for yourself. By making the rounds in the weeks before you actually leave you can gauge who among them would provide valuable references.

By contrast, Exiting your current position without an offer
of a position can expose you to many of the
same risks a layoff does. But because you
can choose the date of your departure,
you can mitigate many of those risks.when you exit involuntarily through a massive layoff, the time between the announcement and the last day (or days) of work for the people laid off can be somber. People laid off can be angry, and some of that anger is directed at the people not laid off. Passive (or active) sabotage can erupt. The atmosphere can be toxic. Trust is eroded. It's not an environment that strongly encourages good-bye hugs or promises about references.

Future interviews and negotiations

If you exit voluntarily, you're better able to present yourself to others as a serious career professional. You can explain your exit as a proactive career move. Your statements about your past roles and about your capabilities gain credibility, because you appear to be more confident about what you're saying.

When you exit involuntarily (that is, when you're laid off or fired) such assertions are less credible. Anything you do say about your past role and about your capabilities is likely to be discounted. You can try, "The layoff wasn't about me — our entire business unit was shut down," or some such. But that leaves unanswered the question, "If you're so capable, why didn't they find another way to keep you?"

Health effects

Layoffs affect the health of everyone in the organization — including the people who are laid off, the people who aren't laid off, and the people executing the layoffs. The effects on "survivors" are so common that the Management literature has adapted the concept of survivor syndrome developed in the field of trauma. [Appelbaum, et al., 1997]

If you wait for the layoffs, you could be harmed directly by being laid off yourself, or you could be harmed indirectly by suffering survivor's syndrome, and by being exposed to others suffering from the trauma of the layoff. If you exit voluntarily, you avoid being exposed to this atmosphere of pain and wounding.

Severance package

The severance package that accompanies a layoff notice might be less valuable than it seems on its face. First, because the value of the package is taxable, the relevant value for purposes of comparing alternatives to being laid off is the after-tax value. Determining that value accurately could require the services of an accountant, which, of course, must be deducted from the face value of the package.

Second, severance packages are often encumbered. Usually you must agree to the terms contained in a document before you can receive the package. You might want to negotiate some changes to that document. In any case, you'll probably require an attorney's services, which, of course, must be deducted from the face value of the package.

Third, the terms of the agreement might restrict your options as you consider alternative employment. If the position you ultimately secure is within an organization that your current employer considers to have been barred by the severance agreement, you might find that legal representation is necessary to protect your severance package. Again, the cost of representation must be deducted from the face value of the package.

Finally, if the terms of the package constrain the kinds of positions you can accept, fair comparison requires that you consider how those constraints might suppress your future earnings.

If you exit voluntarily, none of these factors are relevant, because the severance package is likely very limited, if it exists at all.

Last words

Depending upon the jurisdiction in which you live, local or national government might offer some compensation, possibly including health care for a period of time to persons laid off. Usually, the value of these items is not significant compared to the compensation of a highly paid professional, but since "usually," "period of time," and "significant" are mushy terms, calculating the value of these elements might be necessary for a fair comparison of voluntary exit to being laid off.   First issue in this series   Top    Next Issue

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More about layoffs

Doorknob Disclosures and Bye-Bye Bombshells  [July 10, 2002]

A doorknob disclosure is an uncomfortable, painful, or embarrassing revelation offered at the end of a meeting or conversation, usually by someone who's about to exit. When we learn about bad news in this way, we can feel frustrated and trapped. How can we respond effectively?

Double Your Downsizing Damage  [July 17, 2002]

Some people believe that senior management is actually trying to hurt their company by downsizing. If they are they're doing a pretty bad job of it. Here's a handy checklist for evaluating the performance of your company's downsizers.

What's So Good About Being Laid Off?  [December 25, 2002]

Layoffs during the holiday period of November 15 through January 15 are far more common than you might think. Losing your job, or fearing that you might, is always difficult, but at this time of year it's especially helpful to keep in mind that the experience does have a bright side.

Beyond WIIFM  [August 13, 2003]

Probably the most widely used tactic of persuasion, "What's In It For Me," or WIIFM, can be toxic to an organization. There's a much healthier approach that provides a competitive advantage to organizations that use it.

Encourage Truth Telling  [November 19, 2003]

Getting to the truth can be a difficult task for managers. People sometimes withhold, spin, or slant reports, especially when the implications are uncomfortable or threatening. A culture that supports truth telling can be an organization's most valuable asset.

Those Across-the-Board Cuts That Aren't  [July 14, 2004]

One widespread feature of organizational life is the announcement of across-the-board cuts. Although they're announced, they're rarely "across-the-board." What's behind this pattern? How can we change it to a more effective, truthful pattern?

Organizational Loss: Searching Behavior  [April 16, 2008]

When organizations suffer painful losses, their responses can sometimes be destructive, further harming the organization and its people. Here are some typical patterns of destructive responses to organizational loss.

How to Avoid a Layoff: The Inside Stuff  [January 28, 2009]

These are troubled economic times. Layoffs are becoming increasingly common. Here are some tips for changing your frame of mind to help reduce the chances that you will be laid off.

How to Avoid a Layoff: Your Relationships  [February 4, 2009]

In troubled economic times, layoffs loom almost everywhere. Here are some tips for reconfiguring your relationships with others at work and at home to reduce the chances that you will be laid off.

How to Avoid a Layoff: Your Situation  [February 11, 2009]

These are troubled economic times. Layoffs are becoming increasingly common. Here are some tips for positioning yourself in the organization to reduce the chances that you will be laid off.

Four Popular Ways to Mismanage Layoffs: I  [February 18, 2009]

When layoffs are necessary, the problems they are meant to address are sometimes exacerbated by mismanagement of the layoff itself. Here is Part I of a discussion of four common patterns of mismanagement, and some suggestions for those managers and other employees who recognize the patterns in their own companies.

Four Popular Ways to Mismanage Layoffs: II  [February 25, 2009]

Staff reduction is needed when expenses overtake revenue. But when layoffs are misused, or used too late, they can harm the organization more than they help. Here's Part II of an exploration of four common patterns of mismanagement, and some suggestions for those managers and other employees who recognize the patterns in their own companies.

Coping with Layoff Survival  [March 25, 2009]

Your company has just done another round of layoffs, and you survived yet again. This time was the most difficult, because your best pal was laid off, and you're even more fearful for your own job security. How can you cope with survival?

Teamwork Myths: Conflict  [June 17, 2009]

For many teams, conflict is uncomfortable or threatening. It's so unpleasant so often that many believe that all conflict is bad — that it must be avoided, stifled, or at least managed. This is a myth. Conflict, in its constructive forms, is essential to high performance.

Teamwork Myths: I vs. We  [July 1, 2009]

In high performance teams, cooperative behavior is a given. But in the experience of many, truly cooperative behavior is so rare that they believe that something fundamental is at work — that cooperative behavior requires surrendering the self, which most people are unwilling to do. It's another teamwork myth.

Hyper-Super-Overwork  [August 5, 2009]

The prevalence of overwork has increased with the depth of the global recession, in part because employers are demanding more, and in part because many must now work longer hours to make ends a little closer to meeting. Overwork is dangerous. Here are some suggestions for dealing with it.

What Is Workplace Bullying?  [March 3, 2010]

We're gradually becoming aware that workplace bullying is a significant deviant pattern in workplace relationships. To deal effectively with it, we must know how to recognize it. Here's a start.

Sixteen Overload Haiku  [October 27, 2010]

Most of us have some experience of being overloaded and overworked. Many of us have forgotten what it is not to be overloaded. Here's a contemplation of the state of overload.

Self-Serving Bias in Organizations  [July 20, 2011]

We all want to believe that we can rely on the good judgment of decision makers when they make decisions that affect organizational performance. But they're human, and they are therefore subject to a cognitive bias known as ``Em''self-serving bias``/Em''. Here's a look at what can happen.

Pariah Professions: I  [June 5, 2013]

In some organizations entire professions are held in low regard. Their members become pariahs to some people in the rest of the organization. When these conditions prevail, organizational performance suffers.

Changing Blaming Cultures  [March 5, 2014]

Culture change in organizations is always challenging, but changing a blaming culture presents special difficulties. Here are three reasons why.

Constancy Assumptions  [July 16, 2014]

We necessarily make assumptions about our lives, including our work, because assumptions simplify things. And usually, our assumptions are valid. But not always.

Rationalizing Creativity at Work: II  [November 5, 2014]

Creative thinking at work can be nurtured or encouraged, but not forced or compelled. Leaders who try to compel creativity because of very real financial and schedule pressures rarely get the results they seek. Here are examples of tactics people use in mostly-futile attempts to compel creativity.

Why We Don't Care Anymore  [April 8, 2015]

As a consultant and coach I hear about what people hate about their jobs. Here's some of it. It might help you appreciate your job.

Managing Wishful Thinking Risk  [October 21, 2015]

When things go wrong, and we look back at how we got there, we must sometimes admit to wishful thinking. Here's a framework for managing the risk of wishful thinking.

Wishful Significance: I  [December 16, 2015]

When things don't work out, and we investigate why, we sometimes attribute our misfortune to "wishful thinking." In this part of our exploration of wishful thinking we examine how we arrive at mistaken assessments of the significance of what we see, hear, or learn.

Nine Brainstorming Demotivators: I  [January 31, 2018]

The quality of the output of brainstorming sessions is notoriously variable. One source of variation is the enthusiasm of contributors. Here's Part I of a set of nine phenomena that can limit contributions to brainstorm sessions.

Conway's Law and Technical Debt  [January 30, 2019]

Conway's Law is an observation that the structures of systems we design tend to replicate our communication patterns. This tendency might also contribute to their tendency to accumulate what we now call technical debt.

Layoff Warning Signs: I  [August 21, 2024]

One of the better career moves you can make is leaving your current position before your employer conducts layoffs. When you choose the time, you aren't under pressure and you make better decisions. Here are eight warning signs of coming layoffs.

Layoff Warning Signs: II  [August 28, 2024]

Layoffs often signal their arrival well in advance, if you know what to watch for. Some of the indicators are subtle and easily confused with normal operations. Here are three more indicators that layoffs might be secretly underway.

Beating the Layoffs: I  [September 4, 2024]

If you work in an organization likely to conduct layoffs soon, keep in mind that exiting voluntarily before the layoffs can carry significant advantages. Here are some that relate to self-esteem, financial anxiety, and future employment.

Beating the Layoffs: II  [November 20, 2024]

If you work in an organization likely to conduct layoffs soon, keep in mind that exiting voluntarily can carry advantages. Here are some advantages that relate to collegial relationships, future interviews, health, and severance packages.

Mitigating the Trauma of Being Laid Off  [April 2, 2025]

Trauma is an emotional response to horrible events — accidents, crimes, disasters, physical abuse, emotional abuse, gross injustices — and layoffs. Layoff trauma is real. Employers know how to execute layoffs with compassion, but some act out of cruelty. Know how to defend yourself.

More about layoffs

Doorknob Disclosures and Bye-Bye Bombshells  [July 10, 2002]

A doorknob disclosure is an uncomfortable, painful, or embarrassing revelation offered at the end of a meeting or conversation, usually by someone who's about to exit. When we learn about bad news in this way, we can feel frustrated and trapped. How can we respond effectively?

Double Your Downsizing Damage  [July 17, 2002]

Some people believe that senior management is actually trying to hurt their company by downsizing. If they are they're doing a pretty bad job of it. Here's a handy checklist for evaluating the performance of your company's downsizers.

What's So Good About Being Laid Off?  [December 25, 2002]

Layoffs during the holiday period of November 15 through January 15 are far more common than you might think. Losing your job, or fearing that you might, is always difficult, but at this time of year it's especially helpful to keep in mind that the experience does have a bright side.

Beyond WIIFM  [August 13, 2003]

Probably the most widely used tactic of persuasion, "What's In It For Me," or WIIFM, can be toxic to an organization. There's a much healthier approach that provides a competitive advantage to organizations that use it.

Encourage Truth Telling  [November 19, 2003]

Getting to the truth can be a difficult task for managers. People sometimes withhold, spin, or slant reports, especially when the implications are uncomfortable or threatening. A culture that supports truth telling can be an organization's most valuable asset.

Those Across-the-Board Cuts That Aren't  [July 14, 2004]

One widespread feature of organizational life is the announcement of across-the-board cuts. Although they're announced, they're rarely "across-the-board." What's behind this pattern? How can we change it to a more effective, truthful pattern?

Organizational Loss: Searching Behavior  [April 16, 2008]

When organizations suffer painful losses, their responses can sometimes be destructive, further harming the organization and its people. Here are some typical patterns of destructive responses to organizational loss.

How to Avoid a Layoff: The Inside Stuff  [January 28, 2009]

These are troubled economic times. Layoffs are becoming increasingly common. Here are some tips for changing your frame of mind to help reduce the chances that you will be laid off.

How to Avoid a Layoff: Your Relationships  [February 4, 2009]

In troubled economic times, layoffs loom almost everywhere. Here are some tips for reconfiguring your relationships with others at work and at home to reduce the chances that you will be laid off.

How to Avoid a Layoff: Your Situation  [February 11, 2009]

These are troubled economic times. Layoffs are becoming increasingly common. Here are some tips for positioning yourself in the organization to reduce the chances that you will be laid off.

Four Popular Ways to Mismanage Layoffs: I  [February 18, 2009]

When layoffs are necessary, the problems they are meant to address are sometimes exacerbated by mismanagement of the layoff itself. Here is Part I of a discussion of four common patterns of mismanagement, and some suggestions for those managers and other employees who recognize the patterns in their own companies.

Four Popular Ways to Mismanage Layoffs: II  [February 25, 2009]

Staff reduction is needed when expenses overtake revenue. But when layoffs are misused, or used too late, they can harm the organization more than they help. Here's Part II of an exploration of four common patterns of mismanagement, and some suggestions for those managers and other employees who recognize the patterns in their own companies.

Coping with Layoff Survival  [March 25, 2009]

Your company has just done another round of layoffs, and you survived yet again. This time was the most difficult, because your best pal was laid off, and you're even more fearful for your own job security. How can you cope with survival?

Teamwork Myths: Conflict  [June 17, 2009]

For many teams, conflict is uncomfortable or threatening. It's so unpleasant so often that many believe that all conflict is bad — that it must be avoided, stifled, or at least managed. This is a myth. Conflict, in its constructive forms, is essential to high performance.

Teamwork Myths: I vs. We  [July 1, 2009]

In high performance teams, cooperative behavior is a given. But in the experience of many, truly cooperative behavior is so rare that they believe that something fundamental is at work — that cooperative behavior requires surrendering the self, which most people are unwilling to do. It's another teamwork myth.

Hyper-Super-Overwork  [August 5, 2009]

The prevalence of overwork has increased with the depth of the global recession, in part because employers are demanding more, and in part because many must now work longer hours to make ends a little closer to meeting. Overwork is dangerous. Here are some suggestions for dealing with it.

What Is Workplace Bullying?  [March 3, 2010]

We're gradually becoming aware that workplace bullying is a significant deviant pattern in workplace relationships. To deal effectively with it, we must know how to recognize it. Here's a start.

Sixteen Overload Haiku  [October 27, 2010]

Most of us have some experience of being overloaded and overworked. Many of us have forgotten what it is not to be overloaded. Here's a contemplation of the state of overload.

Self-Serving Bias in Organizations  [July 20, 2011]

We all want to believe that we can rely on the good judgment of decision makers when they make decisions that affect organizational performance. But they're human, and they are therefore subject to a cognitive bias known as ``Em''self-serving bias``/Em''. Here's a look at what can happen.

Pariah Professions: I  [June 5, 2013]

In some organizations entire professions are held in low regard. Their members become pariahs to some people in the rest of the organization. When these conditions prevail, organizational performance suffers.

Changing Blaming Cultures  [March 5, 2014]

Culture change in organizations is always challenging, but changing a blaming culture presents special difficulties. Here are three reasons why.

Constancy Assumptions  [July 16, 2014]

We necessarily make assumptions about our lives, including our work, because assumptions simplify things. And usually, our assumptions are valid. But not always.

Rationalizing Creativity at Work: II  [November 5, 2014]

Creative thinking at work can be nurtured or encouraged, but not forced or compelled. Leaders who try to compel creativity because of very real financial and schedule pressures rarely get the results they seek. Here are examples of tactics people use in mostly-futile attempts to compel creativity.

Why We Don't Care Anymore  [April 8, 2015]

As a consultant and coach I hear about what people hate about their jobs. Here's some of it. It might help you appreciate your job.

Managing Wishful Thinking Risk  [October 21, 2015]

When things go wrong, and we look back at how we got there, we must sometimes admit to wishful thinking. Here's a framework for managing the risk of wishful thinking.

Wishful Significance: I  [December 16, 2015]

When things don't work out, and we investigate why, we sometimes attribute our misfortune to "wishful thinking." In this part of our exploration of wishful thinking we examine how we arrive at mistaken assessments of the significance of what we see, hear, or learn.

Nine Brainstorming Demotivators: I  [January 31, 2018]

The quality of the output of brainstorming sessions is notoriously variable. One source of variation is the enthusiasm of contributors. Here's Part I of a set of nine phenomena that can limit contributions to brainstorm sessions.

Conway's Law and Technical Debt  [January 30, 2019]

Conway's Law is an observation that the structures of systems we design tend to replicate our communication patterns. This tendency might also contribute to their tendency to accumulate what we now call technical debt.

Layoff Warning Signs: I  [August 21, 2024]

One of the better career moves you can make is leaving your current position before your employer conducts layoffs. When you choose the time, you aren't under pressure and you make better decisions. Here are eight warning signs of coming layoffs.

Layoff Warning Signs: II  [August 28, 2024]

Layoffs often signal their arrival well in advance, if you know what to watch for. Some of the indicators are subtle and easily confused with normal operations. Here are three more indicators that layoffs might be secretly underway.

Beating the Layoffs: I  [September 4, 2024]

If you work in an organization likely to conduct layoffs soon, keep in mind that exiting voluntarily before the layoffs can carry significant advantages. Here are some that relate to self-esteem, financial anxiety, and future employment.

Beating the Layoffs: II  [November 20, 2024]

If you work in an organization likely to conduct layoffs soon, keep in mind that exiting voluntarily can carry advantages. Here are some advantages that relate to collegial relationships, future interviews, health, and severance packages.

Mitigating the Trauma of Being Laid Off  [April 2, 2025]

Trauma is an emotional response to horrible events — accidents, crimes, disasters, physical abuse, emotional abuse, gross injustices — and layoffs. Layoff trauma is real. Employers know how to execute layoffs with compassion, but some act out of cruelty. Know how to defend yourself.

Footnotes

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Forthcoming issues of Point Lookout

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Trauma is an emotional response to horrible events — accidents, crimes, disasters, physical abuse, emotional abuse, gross injustices — and layoffs. Layoff trauma is real. Employers know how to execute layoffs with compassion, but some act out of cruelty. Know how to defend yourself. Available here and by RSS on April 2.

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