In this economy, it isn’t everyday that your dream job comes up like it did for Mrs. LAMF. In fact, many people are fighting to keep their jobs as companies go out of business. Working hard and always trying to move up in your company is one way to ensure that you will keep your job, but nothing is full proof. No matter how hard you work or how good you are at your job, sometimes it doesn’t work out. As it just so happens, it was just a few months ago that my current employer announced a hiring freeze.
What does a Hiring Freeze really mean?
When you hear the words, ‘hiring freeze,’ what comes to mind? If you are thinking that it doesn’t sound that bad for current employees, you are wrong! I am sure you are thinking something along the lines of, “but you already work there – a hiring freeze is much different than layoffs.” While it is true that a hiring freeze doesn’t mean that layoffs are guaranteed, it is a good indicator that layoffs are just around the corner.
When I heard from my employer that they were announcing a hiring freeze, I knew it wasn’t going to be good. Just when when my wife and I were starting to have extra income each month, I felt the bad economy closing in on my financial security. I realized how vulnerable I am and nothing is secure. Even if I am a top-notch employee, that doesn’t guarantee that my position will always be there.
As it turns out, about a month after the hiring freeze was announced, my employer announced a complete organizational review. This means significant re-structuring, with everything on the line to be cut. This means entire departments could be cut – although not likely. It does almost guarantee that there will be layoffs. The worst part about it is that it is coming fast. The administration is working with a consultant to do an entire review of the budget, finding ways to cut nearly 10% of the operating budget by March. Yes, in three months I could lose my day job. I guess
my early retirement plan might be forced upon me sooner than age 27.
What to Do in a Hiring Freeze?
So, what do you do when there is a hiring freeze announced? If your employer
announces budget cuts, what should be your game plan? Here are some steps that will help improve your chances of not being laid off.
- Start New Projects – Being proactive at your job can go a long
way. One way to ensure that your position is kept is to assure your employer that you are irreplaceable. An easy way to accomplish this in a short time period is to put more on your plate. Think of new projects that you can take on to keep yourself busy. If you are working on a big project that will increase efficiency or help the organization, it is unlikely that your employer will let you go.
- Look for Other Job Opportunities – There is no reason to sit
around and wait to be cut. Act now and start looking for jobs. If you are worried that your employer will take this the wrong way, you can keep it a secret until the final rounds of interviews or when the future employer needs to contact references. Even if you don’t get another job before being laid off, looking at what jobs are available will speed up the process of finding another job after being let go.
- Cut Unnecessary Costs – This is a great time to review your
budget and get rid of any unnecessary expenses. There’s no reason to be eating out multiple times a month when your next paycheck is not guaranteed. Saving now can provide you an extra cushion if you lose your job.
- Create Side Income – Another great way to be proactive is to
create side income. Whether this is mowing your neighbor’s yard or starting a blog, earning a little extra can help you get through a difficult time. After all, money is money. If you have an extra hour or two per week, what’s stopping you from earning a little extra?
While there is nothing to guarantee that you will not be cut, you can be proactive. I am working on building up my blogging income just in case the worst happens. Other than that, I will just keep my fingers crossed that my employer realizes how much my position is necessary.
How would you respond to budget cuts at your employer?
This post was written by Corey, a staff writer from 20’s Finances and Passive Income to Retire.?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.