I’m really hunting for experiences of people that have been let go already. I know that p[people have different needs and different spending habits, but in normal circumstances is the severance package something that can realistically sustain you, financially speaking, until you get another job. I believe it takes at least a couple of months to get new employment, so I guess my question would be, can we rely on the severance in that sense?
9 replies (most recent on top)
It just depends on how long you were there. I got almost a year's severance. Then you get unemployment for 20 weeks after that.
Severance is typically 2 weeks per year of service. I took two days off for myself then got to work. Job hunting was a part time job in itself. Get organized and track where you applied, who you spoke to, dates, emails, etc. (spreadsheets are your friend). Rank the jobs with your interest, commute time, location, ratings on job sites (like Glassdoor, though Cengage has a lot of fake reviews).
Pay for the LinkedIn pro version to help you. Beef up your resume. Send follow up and thank you emails. Interviews are several rounds: usually phone screening with recruiter, perhaps another with hr, the hiring manager, their colleagues/stakeholders, then in person. Apply everywhere and for everything - you never know. Additionally, check into unemployment. I collected while I was on severance to create a cushion just in case.
Get in touch with vendors you or others may know. Picking up consulting or freelance work is a great way to stretch things out and will plug a gap on your resume even if it not full time.
Agree with @11MHsWVw-ftp. I would agree that the old days of job hunting are long gone. Nowadays you have to go through several interviews with recruiters before even getting to the hiring manager. Once in front of the hiring manager, most likely you'll be up against many other candidates who are either internal or connected with that manager. I would advise save as much as you can, tighten the belt, and keep grinding.
Advice bits from one who went through this ...
The totality of severance will likely not be enough to get you by until you find a replacement gig. It is different for every individual, as the OP suggests. Be sure to ask for specifics - and write them down - when given the opportunity to do so. As what date the severance kicks in (can take up to a month to begin), what date is slated a the last date of payment, and verify whether it will be one or two weeks for every year served.
DO take advantage of whatever career services are offered. Even if it's just resume rewrite coaching. If it has been a while since you have looked for work, be prepared for a mild shock - the process has changed greatly in recent years.
Take careful note of all specifics regarding Health Care and 401K Savings – be careful to note end dates and check your pay stubs very carefully. Many people during the last Pearson layoff had difficulties with timing and/or accuracy - e.g. the Insurance monies were still being deducted from the paycheck even while the employee's coverage had been terminated. Make sure now you know who to call down the line with questions and for problem resolution.
In some states, severance payouts will clash with unemployment eligibility, in other states it will not. If you are not sure, make checking with your local unemployment office a priority. You should apply for unemployment as soon as possible, e.g. just after being laid off or right when the severance payments stop.
Consider getting a part time or temporary job while looking for a permanent position. You might do this now or wait until unemployment runs out (6 months, in most cases). A "dumb little job" keeps you on a schedule and keeps a little money flowing in while you are interviewing for a new permanent position.
Finding a satisfactory new position can take some time. Figure one month for every 10,000 in salary being sought, that is the loose rule of thumb. In other words, a $60,000 position may take you a good six months to land. Personally it took me one year and one month to land my current role, but I was doing a rather insanely-restricted career search (confined almost exclusively to HED publishers). Truth is, most companies are very, very slow in moving through the hiring process. Many will take at least 3-4 months before deciding on their ideal candidate - often it's even longer!
This should go without saying, but be sure to mind your manners as you search. ALWAYS do a follow-up or "thank you" note after each interview or substantial contact. Seek to create a lasting and positive impression, as you never know who you are talking to. The people who eventually hired me were ones who passed me over for an earlier role I had sought with them.
Good luck! You'll be fine!
because your pre-tax deductions no longer are taken out, your individual severance checks will be larger. If you are on Cengage's health insurance, you will need to send your share of the premiums to the COBRA administrator yourself each month (as though it was a utility bill) during severance and after if you remain on COBRA. You may also want to reduce/adjust your fed/state withholding during severance - in consultation with a tax advisor of course. You can still manage the funds in your 401(k) but any new contributions would have to be deposited directly by you, and obviously employer matching stops.
It's your same paycheck - only without the 401k and benefits taken out, for each year of service. So if you were there for ten years, you'll get ten severance checks, one every two weeks after you're let go.
The packages have typically been based on years of service. Because of that, it's really all dependent upon how long you've been there, and what you feel is "realistic" to sustain your lifestyle.
Plan on 3-6 months. Work LinkedIn and company websites like its your job - 8 hours a day.