Posts Tagged Layoff
5 Financial “Widow Makers”
Posted by enrique s in Career, Insurance, Money, Retirement, lifehack, passive income on July 29th, 2009
I was driving to the store with my son the other day, when I narrowly missed a large tree branch that was lying in the street. “I hope nobody was under that widow maker when it fell”, I said. My son asked “why do they call it a widow maker?” I explained that when you go camping, you shouldn’t make camp under a large, dead branch, the reason being that if it breaks off, you’re squished, leaving your wife a widow. Hence, the name. A widow maker is an accident waiting to happen, because someone neglected to perform the proper maintenance.
This got me thinking about all of the catastrophic events that may befall us financially. While they may not kill us, they can put a real hurt on our financial futures. Let’s take a look at some of these potential devastators, and the things we can do to lessen their occurrence:
Job loss - this is a killer if, like most people, you rely on your job for your primary income. If you’re working in an industry that’s ripe for layoffs, like the defense industry, this might be a good time to be proactive. Read this post about how not to get laid off. If you’re lacking in job skills, take a few classes to get you up to speed. Try turning that hobby into a second income. Start a blog, or set up some websites with affiliate links. As a last resort, pass on that vacation. You can use the payout if and when you do get laid off. These steps could add some income to help stretch your unemployment benefits until you find another job.
Illness - this one is hard to predict. Even if you take reasonably good care of yourself, you could still be afflicted with a disease like cancer, or be involved in a car accident that prevents you from working. In this case, the best defense is a good offense. I’m talking about long-term disability insurance. Many of you may balk at the cost. My answer to that is, if you had a machine that printed money, would you insure it against damage? YOU are that money making machine. Make sure that those dollars keep coming in, even if you can’t work for an extended period. I have coverage available through my job.
Divorce - we’re supposed to marry for better or for worse, yadda yadda yadda, but sometimes things just don’t work out. In matters of love, fools rush in where angels fear to tread. I know that Mel Gibson’s no angel, and his wife will get half of what he owns. We’re all on a smaller scale, but losing half of your net worth would be devastating. Choose your mate wisely. Think compatibility, and find someone who shares your financial values. Maybe a prenup isn’t out of the question either. It may save you some aggravation in the long run.
Stock Market Crash - have you looked at your 401(k) balance lately? Me neither. I lack the courage. Seriously, many of us never saw this coming, and our retirements have been moved to the right in many cases. If you’re young enough, you still have time to recover. But be smart. Don’t fall into the trap of many 50-somethings, who had most of their portfolio in stocks. Do some reading, and diversify your investments as you get older. The thing that will disappear as you get older is time. Take advantage of it now. Don’t rely solely on mutual funds and stocks.
Housing Bubble - I hope you’re not one of those people who are underwater on your mortgage. The subprime mess hurt those with good credit as well, as home values plummeted. If you can’t reasonably afford to make all of the payments associated with a house, wait until you can. There’s nothing wrong with renting. In fact, if you plan on moving in a few years, it makes more sense than tying up all of your capital in a house. Walking away from a mortgage will trash your credit rating.
Did I leave any out? Let me know in the comments.
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Corporate Barbarian Links: Corporate Re-Org Edition
My company is going through yet another reorganization in order to “rightsize” and position itself better in the marketplace. Can layoffs be far behind? Well, I don’t worry about layoffs, as I ‘ve alluded to in the past. On a cheerier note, here are some good posts that I’ve read this week:
Jared at Technotheory shows us how he empties his inbox fast by learning from Google. I think my foolproof file-naming system would work well with his approach.
Jonathan at Awake at the Wheel discusses the benefits of big hairy audacious goalsetting. I’m more inclined to use the “baby steps” method, which allows me to break down large goals into small increments.
Jim at Bargaineering asks: What is your dream job? Mine was always centerfield for the Yankees, but I just don’t have the wheels for it anymore.
Steve at Brip Blap believes that there is no cost to good health. I agree. Most people would rather take a pill after the fact than take care of themselves with a good diet and exercise.
In a guest post at Five Cent Nickel, Kevin offers some suggestions for when your job is in jeopardy. Actually, these are good suggestions for even when your job is not in jeopardy.
Free Money Finance asks: Do you dread Mondays? I’m usually pretty productive on Mondays, as I tackle my To-Do list (At least nobody can say I’m having a case of the Mondays).
Jacob at Early Retirement Extreme tells us to spend a little more for classics. Well-made items last longer, and are cheaper in the long run than disposable junk.
Brett at The Art of Manliness gives us some motivational posters featuring George S. Patton. I love how George C. Scott portrayed Old Blood & Guts in the movie.
Peter at Bible Money Matters wonders if schools should be required to teach personal finance classes. I think it’s a great idea, just ask my son!
No Credit Needed talks about micro-goals and staying motivated. I follow this thinking, and think even small progress is a positive thing.
Patrick at Cash Money Life and his wife received a special delivery from the stork. Congratulations!
Happy reading!
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The Angry Young Man
There’s a place in the world for the angry young man
With his working class ties and his radical plans
He refuses to bend, he refuses to crawl,
He’s always at home with his back to the wall.
I like Billy Joel. We come from the same neck of the woods, so I can identify with most of his songs (mostly the older ones). In fact, I used to be the angry young man. Back when I was in my twenties, I was always itching for a confrontation at work. If I felt that I was in the right, I wasn’t about to concede that maybe someone else had a good idea as well. I welcomed any debate just to show people how intelligent I was. I made plenty of enemies, but I didn’t care. I never worried about being stabbed in the back; I figured my proficiency in my profession would be enough to protect me.
Give a moment or two to the angry young man,
With his foot in his mouth and his heart in his hand.
He’s been stabbed in the back, he’s been misunderstood,
It’s a comfort to know his intentions are good.
After working for a while in a large corporation, and seeing equally snide young whippersnappers following in my footsteps, I began to realize that I didn’t have to always have my guard up. I could open my mind, and meet people halfway. Part of this came out of necessity, as I matured, got married, became a parent, and increasingly feared the layoffs that were hitting the defense industry. In other words, I became less of a pain in the ass.
I believe I’ve passed the age of consciousness and righteous rage
I found that just surviving was a noble fight.
I once believed in causes too,
I had my pointless point of view,
And life went on no matter who was wrong or right.
But another thing was starting to happen. I began to play it safe. My opinion could be easily manipulated just to go with the flow. I was selling out. I wasn’t playing to win anymore, just playing not to lose. I was going soft. But inspiration appeared in the form of my teenage son.
And there’s always a place for the angry young man,
With his fist in the air and his head in the sand.
Just spend one day as the parent of a teenager, and you’ll rekindle that old anger. He can be stubborn, argumentative, and a real pain in the ass. In other words, a chip off the old block. I haven’t lost my passion at all; it’s just been passed to the next generation!
So, I thank my teenager for helping me rediscover the fire in my belly. While I don’t pick fights just for the sake of an argument, I don’t fold as easily, either. So, here’s fair warning to whoever gets in my way today:
The Angry Middle-Aged Man is back!
Follow the Angry Barbarian on Twitter: CorpBarbarian
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Unpaid Overtime: Not Just for Brown Nosers Anymore
I worked with a guy many years ago who lived for overtime. Actually, I think he relied on it to live. Even though he had a college degree, and worked in the finance department, he would work overtime in the kitting department (the stockroom for you non-defense contractor types) to pick up a couple of bucks. He must be mortified by the latest recession trend: unpaid overtime!
In an article on Yahoo Finance, more employees are showing up early for work, putting off vacations, and taking on extra projects to please their bosses. Add to that, unpaid overtime. As workforces are cut, the remaining workers are forced to pick up the slack. I didn’t need to read the article, as I’ve seen it in my own office. It’s a sign of the times, and a necessary survival strategy.
It’s hard to say just how widespread the phenomenon is. But Labor Department figures show workers have sharply boosted their productivity over the past year as layoffs mounted. Workers’ output-per-hour jumped 2.7 percent during 2008 — nearly double the increase during 2007 and triple the increase in 2006.
In the past, many workers were chastised as ass-kissers if they went above and beyond. Their fellow employees thought that they were trying to make them look bad by volunteering for unpaid work. I know, I’ve been on both sides of the argument. I’ve seen blatant attempts by self-promoters to try to look good in the eyes of the boss. I’ve also seen people go above and beyond without any motivation other than helping their fellow workers, either by staying late to train people, or helping someone finish a tough assignment before a deadline.
Not all that extra productivity has been voluntary. Some workers are simply forced to do more as co-workers leave, notes Steve Davis, an economist with the American Enterprise Institute.
But this type of unpaid overtime is a new animal. It’s almost expected that you should put in a few hours for the company without pay. I could see if it were necessary to ensure the survival of a company, but my company had a great year last year, and yet, it’s still expected. You would have to do something extraordinary in order to get paid for OT. There was much griping about this last year, but after a recent small layoff, everyone has kept their mouth shut. I guess having a job with no paid overtime is preferable to having no job at all.
Often, the efforts amount to common sense. People dress better and show up early. They say nice — OK, flattering — things to the boss. And they try to look busy. “I’ve started to see a sea change,” Tulgan said. “A growing number of people are saying: ‘I’ve got to roll my sleeves up and do something now.’ They’re finding ways they can identify problems before they happen.”
This eleventh-hour attitude is something I’ve talked about in a prior post. I find it to be an exercise in futility. Your boss already knows what kind of worker that you are. The time to kick it into high gear was last year, when things were good. If you’ve been sucking wind all along, and just now decided that it’s time to save your ass, you’re too late. Your boss is going to save someone who he’s counted on in the past.
And it’s hardly guaranteed that anyone’s sudden boost in productivity — or attitude — can avert a layoff. Bosses tend to see through behavior that amounts to, well, sucking up, said Gary Walstrom, founder of Culture Index Inc. consulting firm in Kansas City, Mo. Walstrom helps companies decide whom to let go. He urges them to focus on hard data — shedding the salesmen who generate the lowest revenue or the customer service staffer with the most unresolved complaints. Someone who starts showing up early once the economy sours isn’t necessarily worth keeping.
So, if you fit into the wind-sucking category, that vacation time that you saved may come in handy - after you get laid off. Think of it as part of your severance package.
Have you been forced to work unpaid overtime? If so, how many hours?
Follow me on Twitter: CorpBarbarian
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America’s Layoff Hot Spots
Yahoo Real Estate recently listed the top five layoff cities in America. Here they are, with layoff statistics for the first quarter of 2009:
Detroit - 14,781
Chicago - 13,647
Los Angeles - 10,594
New York - 8,688
Las Vegas - 8,367
That’s a lot of lost jobs in just three months. Any surprises on that list? Detroit is a victim of the collapsing automobile market. The unemployment rate is a nation-high 14%. The financial bailout has hit Wall Street hard. California has its own financial crisis. And with no money to gamble with, people aren’t flocking to Vegas.
Mass layoffs are even more devastating. They overwhelm the resources that are set up to help them, and put the hurt on the local economy. I’m sure that there’s a ripple effect to the surrounding suburbs. It’s no wonder the housing markets have tanked in these areas.
Has your area been hit with mass layoffs?
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How To Avoid Getting Laid Off
We were stuck in a conference room with no windows. The subject of the meeting escapes my memory, but I do remember that there was a heated discussion, with a lot of profanity thrown back and forth. I was stuck next to a loudmouth, and in close proximity to his coffee-breath ramblings. After about an hour or so, we all called a truce and planned our next get-together. As we compared calendars, the usual side chit-chat began.
“We’re slow. I hope we get some new contracts in here soon.”
“I heard a rumor about a RIF.” (A RIF is a Reduction In Force in defense contractor lingo. The rest of the world calls it a layoff)
“It’s inevitable. I see a lot of guys standing around with their hands in their pockets. If you have work to do, you’re not hanging around shooting the bull.”
“If they RIF anyone, it should be those marketeers. They haven’t brought in a new job in years.”
“I didn’t see any of the afternoon regulars hanging around the cafeteria today. I guess they got the message.”
And on it went. Blame for our situation was assigned and reassigned. The official memo called it “right-sizing”, but it still meant that some of my friends would no longer work there. I remember stopping one of my work buddies in the main hallway. He looked nervous, and told me “It doesn’t look good standing here and talking. I don’t want to give my boss an excuse.” He dashed off. I felt bad for him.
I felt bad because I wanted to tell him he was already too late; that he should enjoy the time spent talking in the hall, because soon you’ll be out looking for another job; that it doesn’t matter now that you’re the first one in and the last to leave; that saying “good morning” to your boss in a chipper, ass-kissy way won’t matter; that not hanging around the cafeteria is futile.
It’s futile because the decision has already been made, not moments ago, but weeks or even months ago. Managers know who their best people are. They may be a couple of minutes late to work; maybe they’re not the sharpest dresser, or their shoes are never shined; maybe they take too many cigarette breaks; maybe they spend too much time shooting the bull. But it doesn’t matter.
Managers will save the jobs of their best people because they get the work done. Period. That’s what makes them their best people. They’ve figured out how to get their work done and thrive under the current circumstances. If the circumstances get worse, they’re even more valuable. They’ve shown their chops, usually under pressure. A manager isn’t going to forget that. If you don’t have the chops, or should I say, you’ve never shown them when they were needed, you haven’t got a prayer at layoff time.
Want to save your job? Put in the time to become the best at what you do. If you don’t have the skills, learn them. Ask questions. Become indispensable. That’s what’s going to save your ass at layoff time. Any last-minute cleaning-up-your-act stuff is just a Hail Mary as the clock runs down to 0:00. Too little, too late. Your fate is sealed. We’ll miss you. Good luck in your job search.
You might as well hang around the cafeteria and shoot the bull.
Sign up for free email updates. I can’t guarantee that it will save your job, but then again, it couldn’t hurt!
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Are Layoffs Harder for Men?
The sting of layoffs can be sharper for men, according to this Yahoo Finance article from the New York Times. If it sounds like the Times article is a little sexist, you’re probably right:
While gender roles are malleable, and many people are adjusting the boundaries, the roles that have been templates for many generations still linger, particularly when it comes to employment. Certainly, a financial provider for a family is going to see a job loss through a much different lens than a single person with no dependents, and more men are primary breadwinners.
You’d think that with a handle like Corporate Barbarian, I’d be some knuckle-dragging Luddite. But I’ve worked with women throughout my career, and had several female bosses that were excellent managers. A woman who’s advanced to a management position in the defense industry has paid her dues. She’s had to endure a lot of crap to get where she is. Women in high-ranking positions are in a small minority. Many are the primary breadwinner in their households. What about the wives of the newly laid off men? They’ll have to pick up the slack for their families. Tell THEM that men have it harder.
A therapist interviewed for the article observes:
“Everyone who has written about male psychology has acknowledged that men base their sense of self on the maxim that ‘I have worth because of what I do,’ ” Mr. Real said. The feeling is that “you are only as good as your last game or your last job,” he said.
Well, I hate to break the news to you buddy, but everybody has to stay on top of their games, especially during these tough economic times. It’s called survival of the fittest, and it’s not limited to men only. The article goes on to state:
In a 2002 study, two sociology professors at Wichita State University, Charles S. Koeber and David W. Wright, found that women who were laid off and went on to look for another job were re-employed less often than men in the same position. This was especially the case if the women were married, had previously held a part-time job or had worked in something other than a highly skilled, white-collar job.
The implication, Professor Koeber says, is that women have more of a burden than men to show their commitment to a job after a layoff.
“It looks like employers systematically apply some criteria to women that they don’t to men who are looking for jobs after being laid off,” Professor Koeber said.
I’ve seen the other criteria applied to women. I thought, naively, when I came out of college, that the workplace would be an extension of my forward-thinking classroom experience. It wasn’t. A coworker of mine was passed over for a promotion because “She just got married. She’ll get pregnant and leave in a year. Then we’ll just have to train someone else for her job all over again.” This wasn’t in 1954 either, but 1984. I was floored. Weren’t there laws preventing this? Would they like their daughters to be treated like this? Then you have this response:
“Gender has shaped the responsibilities my wife and I share,” said Mr. Anderson, 37. “I’d imagine, like a lot of men, I’m struggling with the shame aspect and the feeling that I have to go out and get another job immediately.”
Wah-wah-wah. Man up, you guys! Layoffs suck, period. I don’t want to diminish the anguish caused by layoffs with my smart-assed attitude, but to say that they’re harder for one group over another is just rationalizing.
Am I being too harsh? Fire away in the comments.
Follow me on Twitter: CorpBarbarian
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The Comedian at Work Every group of workers has a comic amongst them. He lightens the mood, pointing out the absurdities of rules and procedures. In my office, our own funny man, much like the Comedian from the Watchmen comics, tends to be a little darker in his approach to humor. Our Comedian is...... -
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My Goals for 2010 The odds of hitting your target go up dramatically when you aim at it. - advice from a fortune cookie A Disclaimer I don't believe in luck, curses, the Evil Eye, four-leaf clovers, rubbing a rabbit's foot, crossing my fingers, knocking on wood, or the power of wishing wells. ......
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Alp-N-Rock Luxe Clothing for Men and Women Simply put, I have found my new favorite shirts. From their unbelievably soft feel against the body to their unique and dynamic design, Alp-N-Rock luxe clothing for men and women clothing sets the mark for all contemporary high-end resort inspired fashion. Often, my expectations are far too high. As such,......
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Cologne for Men – What Women Like on Men There are many different types of cologne for men. Men's cologne usually consists of woodsy, outdoorsy or manly scents. While men may choose their own cologne sometimes they often let the woman in their life pick it out for them. This may work well because a recent study found that...... -
Summer Jobs for Teens are Hard to Find When I was a teenager I worked a diverse set of part time and summer jobs. My first job was at a pizza place taking orders and making pies. From there I moved on to various retail jobs including a couple stores in the mall, a GNC, a golf driving......














