my organization has a budget shortfall; should I be job-searching?

A reader writes:

Thanks to your amazing advice and great "how to get a job" book, I landed a position in the development office of a small non-profit organization that does the kind of work I really believe in. It was truly a step up from where I was -- a more than $13k raise, more opportunities to be creative and, best of all, appreciative and respectful coworkers. I've been here just about two months and in that time have written a (so far) well-performing year-end appeal, spearheaded upcoming anniversary projects, received lots of positive feedback and, in general, made a difference.

At our last staff meeting, the executive director dropped a bomb that we're down $100,000 from where we need to be at this point, due to several grants that did not come through earlier this year. She mentioned cut-backs on spending and furloughs, but nothing specific yet.

My question is -- should I be looking for another job? I feel that, as the newest person, I'd likely be the first cut. I only understand furloughs to be company-imposed "vacations" with no pay...do you have any more insight than that? Also, since I've only been here two months, I'm worried how that would look to potential employers (I was at my previous job, my first after college, for nearly three years). Is a furlough an acceptable reason to look for another opportunity, or will I be seen as disloyal?

First, thank you. I will totally take credit for you getting your job.

Furloughs are mandated periods of time off without pay. They're often used when an employer needs to make up a budget shortfall but wants to avoid outright layoffs. They're usually for a week or two, although occasionally they're longer. If doing furloughs means that the employer truly does end up being able to avoid layoffs, they can be a very good thing (in terms of potentially solving the problem). 

The bigger issue on my mind, though, would be whether this actually signals bigger problems beyond your current $100,000 shortfall. What I would want to know is whether furloughs and other cutbacks are going to solve the problem, or whether the organization is likely going to need to look at layoffs down the road. (By the way, I don't know how big your budget is or how small your organization is, but $100,000 might be perfectly easily made up with cuts other than layoffs. But I'd want to know if this indicates you're on a downward funding trajectory more generally or if this is likely the extent of the damage.)

If there are going to be layoffs at some point, don't assume that you're the most vulnerable just because you were hired recently. An effectively run organization is going to pick positions to cut based on which positions are most expendable, i.e. least essential to the core work of the organization. If your position is key to the organization's work, it doesn't make sense to cut it, no matter how new you are ... at least not as long as there are other positions that are less essential. (An organization may also take this opportunity to cut lower performers, although really, they should have been dealing with them long before this anyway.)  An exception to this: Even if your position is essential, it's possible that if they need to eliminate a less-key position that's held by a long-time and/or fantastic staffer, they could cut that person's position and then move her into yours (assuming it's a reasonable fit), thus resulting in you being laid off to open up the spot.

This is all speculation though. My point is just not to assume anything, because there are lots of possible ways this could go (including no painful cuts at all).

Now, what's your relationship like with your manager? Unless it's terrible, the best thing you can do here is to sit down with her and talk about this. You're in development (that's fundraising for readers who are unfamiliar with nonprofit terms), so start off by talking about what extra fundraising work you might be able to do that could help. Then, say something like this: "I would feel naive if I didn't ask this next thing. I know that as a recent hire, my position might be high on the list to cut if it comes to that. I completely understand that there are no guarantees whatsoever and that these things can be hard to predict, but I'd so appreciate any insight you can give me about the security of my position should layoffs end up being necessary, or about how those decisions would be made."

Even if you don't get a solid "yes, you'd be an early cut" or "no, your position is essential" or even "I don't know, but I do know there are three positions we'd cut before we even looked at yours," you still have  a good chance of getting additional information that will help inform your thinking. And particularly because you're in a small organization, you have pretty good chances of getting a fairly candid answer, rather than the opaque responses that large companies often give people.

Then, follow this up by saying how much you love your job and are thrilled to be there, but ask that you be given the earliest possible heads-up if it does start looking like your position might need to be cut. (But also don't assume you'll get that. There are a lot of concerns that go into managing layoffs well, and employers don't always do it perfectly.)

Then, no matter what you learn in this conversation, it wouldn't be a terrible idea to do some looking around at other opportunities. You don't need to take another job if it turns out you don't need to, but job searches can take a while and if the worst does happen, you'll be glad that you got a head start. So send out some applications, but think of it not as a "real" job hunt but as more of a safety net in case you end up needing one. 

And when talking to prospective employers, I wouldn't say that you're looking because of furloughs in particular; I would be more general and say that you're looking because the organization is in a rocky financial period and you're concerned about the stability of your position. Hopefully this is true, right?  You wouldn't be leaving because you had to take a week off without pay, but rather because of the larger concerns that raises about the organization's financial stability. This will make sense to employers and you don't need to worry about being seen as disloyal (although I think you might if it were really just confined to the furlough).

Last, I want to stress that all of this is just about being prepared. For all we know, your organization isn't going to have a single lay-off, funding will be back where it needs to be next year, and you're going to go on enjoying this job for many years. 

A lot of nonprofits go through this. The best way to handle it is to gather information, make sure you don't have your head in the sand, and create a safety net for yourself in case you need it, but not be scared off prematurely. Good luck!

can I ask my employer to lay me off?

A reader writes:

I work for a major financial services company. I no longer wish to work for that company but don't want to just resign. The company has been laying workers off and is planning more layoffs. I don't want to feel like a sitting duck. I also want to leave and focus on a non-competing business that I recently started. Should I ask for a package because I wish to leave? I am hoping to get some perks and professional references if I seek a package. What would you advise?

You're planning on leaving regardless, right? If so, you have nothing to lose by approaching your manager about the possibility of being a voluntary layoff in the next round. If they're planning to do layoffs anyway, they may be relieved to get volunteers and you could save someone else from being cut.

That said, there's no guarantee that they'll accept your offer. If yours isn't a position they plan to cut, it doesn't make sense for them to lay you off. So you should be prepared for them not to take you up on it ... and, depending on the culture there, it might be awkward hanging around much longer after you've told them you're ready to leave. But it sounds like you want to leave either way, anyway.

If you're close to your manager and have a relationship of trust, you might be successful running this by her off the record and getting a better sense of how this proposal is likely to be received. Good luck!

P.S. I'm asking the Evil HR Lady, who has more experience with layoffs than me, to weigh in too.

should I warn my friend he's about to be laid off?

A reader writes:

About 8 months ago, we hired a new manager who moved very close to me and my family. I am his direct supervisor.

Shortly after they moved here, we invited them over for dinner and we have since become good friends ... dear friends, in fact. Our kids play together, we've been camping together. You know the kind of friends I'm talking about, the kind you wanna keep your whole life long.

Our company is having to initiate a round of layoffs and his position is being eliminated. The announcements won't come out for another two weeks and of course, until then I'm supposed to keep the details (i.e., names of those affected) confidential.

My friend is making plans to travel this summer and he is aware that there are rumors of cut-backs in the air. He's told me, "the sooner I know, the better" as he is in the process of enrolling his kids in school for the fall, his wife is taking college classes, etc.

Do I give him a heads-up and tell him? Or do I wait until D-Day to let the cat out of the bag?

If I tell him, there is a chance that others will find out and my supervisors will eventually discover I broke confidentiality. If I wait until D-day, the late notice will cause considerable stress and hardship - financial and otherwise - for him and his family.

I'm leaning toward not telling him ... but I'm perplexed. Any and all advice appreciated.

Ugh. This is a terrible situation.

Your position gives you access to information that you cannot share with others. If your manager finds out you've broken that confidentiality, it would rightly call into question your ability to keep information confidential in the future, your ability to have personal relationships with people you manage, etc.

However, I think it's all kinds of BS that the company knows it will be laying him off and isn't telling him yet. Yes, I know this is how it's done, but I still think it's unfair and inhumane.

I think there's a middle ground here. I would tell your friend something like, "You know I can't really talk about this, but what I can do is urge you in the strongest terms to wait until the end of the month before making those kinds of decisions." Your friend should get the message, at least enough to proceed with caution and to not feel later like you stood idly by while he made financial commitments that you secretly knew he'd regret.

Plus, it's sensible advice for anyone at a company where there are rumors of layoffs, so you have plausible deniability if ever needed.

What do others think?

update from laid-off reader -- being nice pays off!

Remember the reader from this post last month, who wrote in asking about whether she should send a thank-you note to her boss to thank him for the opportunity she'd had with him?

She just sent in this update:

I wrote to you on March 2nd asking if it would be proper for me to send a thank you note to my boss after getting laid off, because I felt bad for him/his company and I loved the job. Well I wanted to let you know it certainly paid off, because after 5 weeks off I was the first one hired back!!!! (And the only one so far.) Thanks.

What great news! This is awesome.

laying off a good employee

A reader writes:

Due to the recent economic downturn, I am obliged to fire one of my best employees: he is proactive, his work is always sharp, he is a team player, and he is an evangelist of the vision of the company, not only in his department but in the entire company. Unfortunately we are currently in "survival mode" and his position (software developer) is not fundamental for the survival of the company. So I have to let him go.

I'm not only sad because I'm losing a great person, but also because I don't want to lose his trust: he is at the top of my list when we will start hiring again - hopefully in a few months... But how could he accept the job again after we clarified that his position is not fundamental for the company's survival and therefore he could be let go again?

Well, first, make sure you don't say you're firing him, since that implies he did something wrong. You're laying him off. Firing is for cause, whereas a layoff is about eliminating the position.

Now that that's out of the way... well, this sucks. And all you can really do is tell him what you've said here. Tell him all the reasons you value him. And tell him the reality that you're being forced into by finances.

You should also tell him that he's at the top of your list when you're hiring again. You're right that he might be hesitant to return because he'd question his future job security. But he deserves to be able to make his decisions with full, complete, honest information -- and yes, his decision might be not to return in the future, if he judges it's not the best move for him. But all you can do is be straightforward with him, give him as much information as you can, and respect his decisions.

Actually, that's not all you can do. You can also help him in the way you handle the layoff. Specifically:

• Tell him as soon as possible. Don't leave him in the dark now that the decision has been made.
• Be as generous as you can in his severance package.
  
• Continue his health insurance if you can, for as long as you can.
  
• Help with job-hunting leads, including setting up introductions to others who may be able to help.
  

You're not alone in going through this, and neither is he. Good luck to both of you.

laid off and then asked back

A reader writes:

I was laid off after working 2.5 years with a company I adored. I was devastated. I kept in contact with coworkers and was persistent about letting my Branch Manager know of my desire to come back.

Finally I landed a new job. But, 3 days later, my Branch Manager gave me an offer. I REALLY don't know what to do, stay or go.

I have tried to weigh the pros and cons in going back to my old company. Pro: It was a part of my life, I adored the company and I have the chance to return. A position I finally could be proud of proving my dedication and productivity. Con: fear/stability, I ask myself are they going to lay me off again? If so, I've lost my new job too and thus am unemployed again.

For new position I just accepted, the pros are that they are a stable company, in business for years, no competition. The cons here are: high expectancy of having 5 demands to complete at once whilst receiving 5 more, resulting in massive reaming. I can't do 5 things at once...sorry... (I'm not one that enjoys "reaming" and I don't have it in me to "give it back as it's dished out to me.")

Bottom line... Go back to the job I loved and take the chance of getting laid off or the company going belly up? Or stay at new employment and take the chance of being let go or leaving because of frustration?

If this were me, here are the factors I'd base my decision on:

* What's going on with your old company financially? It's reasonable to ask them what's changed since they laid you off. If you leave a new job to return to them, are they willing to guarantee you (in writing) that you won't be laid off again over the next, say, two years?

* What are your chances of success at your new job, the one you're currently at? Based on what you wrote, it sounds like it might not be a good fit for you ... and maybe that you might not be a good fit for them. If you think their demands are unreasonable, there are two things that could be going on: (1) they're unrealistic, or (2) they're not unrealistic; it's a company that strives to be exceptional and thus looks for employees who can and will work at a faster pace than what you were used to at your old company. If it's #1 and they've been operating that way for a while, they're unlikely to change. If it's #2 and you prefer a different pace, they will expect you to adjust or you may eventually lose the job. So you need to be brutally honest with yourself about whether this job is right for you.

Based solely on your letter (which obviously can't give me all the relevant details), I hear alarm bells about your fit at your current job. So at a minimum, please explore those as part of your decision.

Good luck!

thanking boss after getting laid off

A reader writes:

I have been at my job for 11 months and the company laid off everyone but 2 people because of the slow economy (22 people in all). I was one of the ones laid off. I absolutely loved the job. Would it be proper to write a thank you note to the boss/owner thanking him for the employment opportunity that I had with them? (It is a family owned business.)

It's certainly not necessary, but it would be an incredibly kind and gracious thing to do.

Laying people off is very hard, and I can only imagine how it feels to have to take one's family business from 24 people to 2 people. Generally laid-off employees are understandably focused on the impact on themselves -- of course -- but if you're thinking of your boss as well, I'm sure he would be really grateful to receive a note like that right now.

And not only is it a really nice thing to do, but it might actually pay off in the future, in terms of him helping you with job leads or being the first on his list to call if business picks back up ... but mainly it's just really nice.

thank-you note for not being laid off?

A reader writes:

My husband has been successfully employed by the same company for 13 years. Due to the economic climate, the company has been forced to lay-off 14% of their staff. Fortunately, my husband’s job has been spared, and at least for the moment, we feel that his job is secure. Would it be appropriate for me, his wife, to write a thank-you note to his employer expressing my gratitude for my husband’s employment? This company has always been very good to us and I feel as though this would be a genuine gesture, but am not sure how professional it would appear.

It's an understandable impulse, but you, as the wife of the employee, should not write a thank-you note to the company. As a spouse, you really shouldn't have any official interaction with the company, and a thank-you note for employing your husband would come off strangely. Your husband should interact with the company on his own behalf. (And remember, the company isn't doing charity work; they're presumably employing your husband for good reason.)

However, your husband could certainly tell his manager how much he appreciates working at the company -- couched not in terms of the economy but rather in terms of whatever he does truly enjoy about the company. Any manager in this situation would appreciate hearing an employee affirming that he loves his job.

job-searching after being let go

A reader writes:

August 29, 2008 - After working for this IT services company for 2.5 years, I was taken into the boss's office and told that the money was bad and business was scarce. My boss cut me from 40 hours per week down to 20 hours per week to save the company money. He stated that he didn't want to get so bad that he had to shut the doors of the business.

September 24, 2008 - Heard from the accounting/office manager of the business that the company is not doing any better and that the boss had to use funds from his personal account to cover the business taxes.

September 25, 2008 - My boss took me into his office and stated that I made a typographical error and that he was going to let me go.

I felt that he let me go due to the business lacking in funds to cover me on the payroll; however had to come up with a lame excuse to fire me. Please understand my former boss has no people skills and likes to bark commands instead of talk to you like you are a human. In the 9 years that the business was open, my position was the one with the highest turnover. In the 9 years of operation I was number 34 to sit in that seat.

How should I address this on my application and in interviews so that I don't have a hard time finding a job in the future?

I'm not sure that you were fired. As you point out, it sounds like a layoff (which are financially based). You can find out for sure this way: Did the company rehire for your position, or are they leaving it vacant? If the position no longer exists, your position was eliminated, which is often the definition of a layoff.

Now, is it possible that your boss genuinely fired you for cause and then later decided not to refill the position for financial reasons? Sure, absolutely. But given the context that you've laid out here, I'd be skeptical.

If future employers ask why you left, I'd simply explain that the business was in extreme financial trouble, your hours were cut in half, and the boss was using his personal money to pay business taxes. Given the economy right now, most people's brains are going to fill in the rest on their own and move on to the next question. However, some interviewers may specifically ask, "Were you laid off or did you leave voluntarily?" so I'd find some wording that implies you were laid off without outright lying about what your boss said.

Of course, the best thing you could do would be to get the company to agree to consider your departure a layoff (if indeed they didn't refill the position). Assuming they've eliminated the position, you can call your old boss and ask if he'd be willing to call your departure a layoff rather than a firing for future reference calls. It's at least worth a shot -- the worst that can happen is that he'll say no. If there's an HR department, start with them; they may be able to advocate for you with your boss. And actually, even if the company did refill your position and it wasn't a layoff, you should still try this approach; see this post for more details on how to do it. Good luck!

Yahoo!'s leaked layoff memo

Check out this leaked copy of the instructions Yahoo! sent to managers for conducting their 1,500 layoffs last week (courtesy of Valleywag).

There's much to cringe at here, but I think the worst is this: "Yahoo! will not ask for reimbursement from the employee on any repayment obligations (relocation, sign-on bonus), provided the employee signs the Supplemental Release."

So apparently if someone chooses not to sign the release (which, for those who haven't had the lovely experience of dealing with layoffs, is a form releasing the company from any legal claims, generally required to be signed before severance pay is released), they'd need to repay relocation expenses? After getting laid off. Lovely.

I'm (sometimes) sympathetic to businesses that need to conduct layoffs. It sucks, and sometimes it's unavoidable. But it's probably the most important time to go out of your way not to be an ass. Yahoo! forgot.

silence from manager after layoff

A reader writes:

I was recently laid off. My boss works in a different office and was not there for the layoff. The SVP who was there told me that my boss wanted to have a conversation with me about the situation. It has now been over a week and I have not heard from her. It is my understanding that the onus is on her to contact me since she presumably had to make the decision about my employment and was then not there to follow through. Am I supposed to contact her?

Contact her if you feel like contacting her; otherwise, you're under no obligation to do so. However, it's probably worth your while to reach out because she may be able to point you toward job leads or act as a reference for you in the future.

My suspicion is that your boss knows that talking to you directly about the layoff is the right thing to do, but has chickened out of what she feels will be an awkward or difficult conversation. This is lame and she sucks as a result, but you should still exploit whatever help she can offer you.

laid off in order to lower pay?

A reader writes:

Last Friday, I was laid off from my job. Apparently the official reason is "lack of work," although my manager kept hammering on the fact that I was getting paid so much more than other people in the same positions.

In our area, we had 4 people working the same positions: 3 permanent employees (including me) and 1 contractor. I have fairly good reason to believe (alas, no proof) that the contractor was hired on as a permanent employee just the week before I was laid off. My guess is for a good $10 less an hour than I was being paid. In my papers to be signed, it was stated that the company could not hire anyone for my position in the coming 90 days. Of course it said nothing about any period prior to my involuntary departure.

My manager advised me to take the severance package (approximately 1 month's pay), yet not to touch it, since they may very well call me back within 60 days and I would have to pay it back. I have a hunch that they will call me back, but only at a much lower pay scale. Is all this legal? If not, what recourse do I have?

First let me say that I'm not a lawyer and this is outside my area of expertise, so I'm doubly unhelpful on this one. I'm hoping someone who can speak more definitively on these issues than I can will weigh in.

However, what I do know is that if your company did lay you off as a method to ultimately get you back at a lower rate of pay, they are not a company you want to work for.

So to me, that trumps the question or whether or not it's legal, although you could certainly speak with a lawyer to determine your options. (Disclaimer: In general, I tend to think people should save legal action for the most egregious situations, simply because it usually means spending a lot of money and even more energy and emotion on something that can be hard to prove.) But my hunch is that unless you can prove that the whole thing was premeditated ("let's hire on the contractor, lay off Susan, and then rehire her at a lower rate of pay"), you'd have little recourse. But hey, that's a hunch with no J.D. behind it, so take it with a grain of salt.

Anyone have more helpful thoughts than my sort of lame advice?