Career transitions have been on my mind recently due to the challenging reality of layoffs. We see them in the headlines, but I also get the honor of working with you, our clients, as you navigate them personally.
True to our “Envizion More” view of the world, we see layoffs–and all job transitions–as an opportunity to take a step forward. This is true not only in regard to your finances but also in terms of your career and vision.
In these seasons, we have two goals in helping you:
- Helping you maximize the value of your exit as well as your next role
- Provide maximum financial flexibility to find the ideal next step for you
Today, I wanted to share a few of the decisions we focus on to achieve those two objectives. If you find yourself recently laid off or concerned one may be coming, we’d welcome the opportunity to help you in these areas.
Step 1: Activate Your Network
The only thing that may be more valuable than your resume is your network. If you’ve recently been laid off or suspect your company may announce one soon, prioritize strong relationships.
Consider reaching out to a few recruiters or headhunters. Maybe there are people who were in your life for a time and have moved on to better, more stable roles that you could re-connect with. If you’ve already been laid off, be vocal about what you’re looking for on LinkedIn. I’ve seen all of these accelerate a strong next step for our clients.
Step 2: Consider a Home Equity Line of Credit
In career transitions, more financial flexibility equals more freedom to pursue the right next role. One of the actions we often encourage clients to take is to pre-emptively set up a home equity line of credit. This is critical if you suspect layoffs may be coming to your company.
The timing is sensitive here. Why? Because they won’t give you a line of credit without a job–like when you get laid off. Banks love giving you money when you don’t need it. If you’re able, you give yourself access to cash without a significant liability.
Step 3: Know How (and Why) to Negotiate Your Severance
When layoffs happen, HR departments are looking for the most efficient way possible to oversee the process. This means they often aren’t looking at the merits of each individual employee.
This is why we frequently review the severance packages our clients are offered. In one example, a client was the only member of their team eligible for a sales bonus. We negotiated a later exit date (lower severance), but it gave them access to a bonus that was 2-3X the lump sum of cash.
I say that, to say this–most companies are willing to negotiate in good faith when there’s good reason. If you need help identifying your “good reason”, this is a common way we serve our clients.
Step 4: Consider the Total Compensation of New Roles
When you’re an executive, your compensation is generally far more complex than just base salary and bonus. When considering new job offers, don’t get tunnel vision on those two variables.
Another example: we had a client negotiating with the recruiter, and they asked for a 10% increase on the offer. The recruiter returned with an 11% increase in salary, sincerely thinking they had delivered on the request. Once we reviewed the offer though, the hits on 401(k) matching, LTI, and other elements equated to a 30% total compensation decrease.
The recruiter sincerely didn’t mean for that to be the outcome, but they were inexperienced. Good-hearted or not, you can’t trust a recruiter to see the full picture. Know exactly what the 5-10 year impact is to your total compensation.
Again, if you need help, this is a key area we are honored to serve.
One More Thought: Stepping Away
Before I close this train of thought, I need to inject one more key question for those experiencing a career transition. Every season of change, even ones we don’t choose, gives us the opportunity to reflect if we are living the life we Envizion.
Maybe for you, the next step is not deeper into your vocation. For many families, the right next step looked like stepping away. I see this when people lose the sense of purpose and mission in their work. They have enough to be independent, and with that in mind, this isn’t where their passion is anymore.
As you reflect on your next step, talk with your spouse, your kids, and others who are important to you. Create a bigger picture of the life you want to live and what next step helps you move in that direction.
It might be another step deeper into your career. It might be downshifting to a part-time consulting role. It might be a complete exit. Whatever the plan, make sure it aligns with the life you picture when you Envizion More.