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What to Do After Being Laid Off: A Step-by-Step Guide
No one wants to face the reality of being laid off. It’s stressful, especially when you’re unsure what’s next. Whether the layoff was sudden and unexpected or part of an ongoing company restructuring plan, take a moment to pause when it happens. You don’t need to immediately figure out your entire future.
Start with the most pressing steps, focusing on your final paycheck, benefits, unemployment options, and short-term finances. Then, give yourself time to evaluate your career goals and decide whether you want to find a similar position, change careers, or start your own business.
This step-by-step layoff checklist explains what to do if you get laid off and how to approach your next career move.
12 Things to Do After Being Laid Off
1. Review Your Layoff and Employment Documents
What to do when you get laid off? It’s a common phrase to research when you’re in this position. But don’t get ahead of yourself. Complete each step while exploring your options throughout the process, beginning with an initial list of layoff and employment documents.
Look over any documents you received regarding:
- Your final paycheck
- Severance pay
- Unused vacation or paid time off
- Retirement accounts and benefits
- Health insurance
- Stock options or other compensation
- Employment records you may need later
If you received a severance agreement, go over all the details carefully. If you don’t understand something or the agreement has significant legal or financial implications, consider speaking with a qualified professional before you sign.
Also, save copies of important employment documents while you still have easy access to them. These may include pay records, performance reviews, benefits information, job descriptions, and documentation of projects or accomplishments.
2. Check Your Unemployment Benefits
If you were laid off because of something that was out of your control and you are not at fault, you may be eligible for unemployment benefits. Eligibility, benefit amounts, and application requirements vary by state.
The U.S. Department of Labor recommends that you contact your state’s unemployment insurance program once you become unemployed. The sooner, the better.
You generally apply through the state where you worked, but before you apply, gather the following information:
- Your former employer’s name and address
- Your employment dates
- Your recent wage information
- Your reason for separation
- Any other information requested by your state
Don’t assume you won’t qualify. Check your state’s requirements and apply if you believe you may be eligible.
3. Review Your Health Insurance Options
Losing a job can also mean losing employer-sponsored health insurance.
Depending on your circumstances, you may have options such as continuing employer coverage through COBRA, enrolling in a Marketplace plan, or obtaining coverage through another qualifying source. Losing job-based health coverage can qualify you for a Special Enrollment Period through the Marketplace.
Prioritize this step, as you don’t want to wait until you need coverage to figure out your options. Review your options as soon as possible and then compare costs. Also pay attention to enrollment deadlines.
Don’t wait until you need medical care to figure out your coverage. Review your options, compare costs, and pay attention to enrollment deadlines.
Tip: Because health insurance rules and eligibility can change based on your circumstances, check the current requirements through HealthCare.gov or your insurance provider.
4. Consider Your Finances
One of the most important things to do after a layoff is to review your finances.
Start by calculating:
- How much money you have available
- Your essential monthly expenses
- Your expected income from severance or unemployment
- Your outstanding debt payments
- Which expenses you can temporarily reduce
- How long your current savings could support your household
Separate essential expenses from optional spending. Housing, food, utilities, insurance, transportation, and minimum debt payments should be your priorities when creating a budget.
You don’t necessarily need to make major financial decisions immediately. First, understand your situation. Then create a realistic short-term budget while you determine your next career move.
5. Give Yourself Time to Think About Your Next Career Move
A layoff can create pressure to find another job right away. While getting income again may be your top concern, it can also be worth asking whether you actually want to return to the same type of role.
Consider questions such as:
- What did I enjoy about my previous job?
- What parts of the job did I want to change?
- Which skills have I developed?
- What type of work do I want to do next?
- Do I want more flexibility?
- Do I want to work for another company?
- Would I consider working for myself?
- Do I want to change industries?
6. Update Your Resume and LinkedIn Profile
Once you’ve assessed your goals, update the materials you’ll use during your job search.
Your resume should focus on accomplishments rather than simply listing responsibilities. Whenever possible, show how your work contributed to revenue, efficiency, customer satisfaction, growth, cost savings, or other measurable outcomes.
Also update your LinkedIn profile.
Review your:
- Headline
- About section
- Recent experience
- Skills
- Certifications
- Accomplishments
- Professional photo
- Contact information
You can also reconnect with former colleagues, clients, professional contacts, and others in your industry. Networking can help you discover opportunities that may not be posted publicly.
7. Start Your Job Search Strategically
If finding another job is your immediate goal, avoid treating the search as a numbers game where you simply submit as many applications as possible.
Instead, create a target list of companies and positions that match your experience and goals.
Consider using several approaches for this step, including the following strategies.
Apply Directly
Look for positions through company websites and reputable job platforms. Customize your resume when a position closely matches your experience.
Use Your Network
Tell people in your professional network what type of opportunity you’re looking for. A former colleague or professional contact may know about an opening before it is publicly advertised.
Work With Recruiters
Recruiters can help connect qualified candidates with companies looking for specific skills and experience.
Consider Contract or Temporary Work
Temporary or contract positions can provide income while you continue looking for a long-term opportunity. They may also introduce you to new industries and professional networks.
The U.S. Department of Labor also notes that Rapid Response services for laid-off workers may include career counseling, resume assistance, interview preparation, job-search support, training opportunities, and information about unemployment and benefits. Availability varies by state.
8. Consider a Career Change After a Layoff
A layoff doesn’t necessarily mean you need to find another version of your previous job.
If you’ve been considering a career change, this may be a good time to explore it more seriously.
Start by identifying your transferable skills.
For example, someone with experience in:
- Sales may have strong communication and relationship-building skills.
- Construction may have valuable technical and property-related knowledge.
- Project management may have organizational and leadership skills.
- Customer service may have strong client relationship experience.
- Real estate may already understand the home-buying process and local market.
Then research careers where those skills can be useful.
You may need additional training, certifications, or licensing depending on the career you choose. Look at the requirements before committing time or money to a new path.
9. Consider Starting a Business
Another option after a layoff is self-employment or business ownership.
Starting a business isn’t the right choice for everyone. It requires financial planning, commitment, and a willingness to take responsibility for both the opportunities and challenges of running a company.
However, it can be worth exploring if you’re looking for:
- More control over your work
- Greater flexibility
- The opportunity to build something of your own
- A career that uses your existing skills
- Long-term business ownership
There are several ways to become a business owner. You could start a business from scratch, buy an existing business, or consider a franchise.
10. Decide Whether Starting From Scratch or Buying a Franchise Makes Sense
If you’re interested in business ownership, make a list of what seems achievable or at least desirable to you based on current skills and passions. You have two major options: starting a business from the ground up or buying into an established franchise.
Starting a business from scratch gives you control over the brand, business model, systems, and strategy. However, you also have to develop all of those business elements yourself.
A franchise typically provides an established business model, brand, training, systems, and ongoing support in exchange for an initial investment and continuing fees.
Neither option is automatically better. The right choice depends on your financial situation, experience, goals, risk tolerance, and how much structure and support you want.
If you’re considering a franchise, review the investment requirements carefully and read the Franchise Disclosure Document (FDD) before making a decision.
11. Consider Whether a Home Services Business Fits Your Skills
For people considering business ownership after a layoff, service businesses can be an interesting option.
Home services cover a wide range of businesses, including:
- WIN Home inspection
- Cleaning
- Pest control
- Landscaping
- HVAC
- Plumbing
- Electrical services
- Property maintenance
A home inspection business can be ideal for people with backgrounds in construction, real estate, engineering, skilled trades, sales, customer service, or other fields. Home inspection also allows business owners to combine technical work with customer relationships and business development. However, requirements vary by state. If you’re considering becoming a home inspector, research your state’s licensing, training, insurance, and other requirementsbefore getting started.
12. Don’t Feel Like You Have to Decide Everything at Once
After a layoff, it’s common for people to make this mistake: thinking they immediately need to know exactly what the next five years will look like.
Don’t panic. Instead, focus on the next decision.
First, stabilize your finances and benefits. Then determine whether you’re looking for another job, considering a career change, or exploring business ownership. From there, research the options that fit your skills, financial situation, and goals.
A layoff can be a difficult transition, but it can also create an opportunity to reconsider what you want from your career. Losing your job could be the push you needed to make that next big move in your life; the one you’ve been thinking about for far too long.
Could Business Ownership Be Your Next Step?
If you’ve decided that you want more control over your career, business ownership may be worth exploring.
WIN Home Inspection offers a franchise model for entrepreneurs looking to enter the home inspection industry, with training, technology, marketing, and ongoing business support.
For people coming from different professional backgrounds, the opportunity can provide a structured path to business ownership while allowing them to build a local service business.
Before choosing any franchise, take time to understand the investment, requirements, responsibilities, and support available to franchise owners.
What to Do if You Get Laid Off: FAQs
What should I do immediately after being laid off?
Start by reviewing your severance and employment documents, checking your unemployment eligibility, reviewing health insurance options, and assessing your finances. Once you address those immediate issues, start planning your next career move.
What should I do after losing my job?
After handling immediate financial and benefits-related matters, update your resume and LinkedIn profile, reconnect with your professional network, and begin evaluating your job, career-change, and business-ownership options.
How do I find a job after being laid off?
Update your resume, refresh your LinkedIn profile, contact your professional network, work with recruiters, and apply strategically to positions that match your experience and goals. Consider contract or temporary work as another option while searching.
Should I change careers after being laid off?
A layoff can be a good opportunity to evaluate whether your previous career still fits your goals. Consider your transferable skills, interests, financial needs, and any training or licensing required for a new career before making a decision.
Should I start a business after being laid off?
Starting a business can be an option if you have the financial resources, skills, commitment, and interest in becoming a business owner. Before deciding, consider your financial runway, business model, startup costs, market demand, and personal goals.
Is a franchise a good option after a layoff?
A franchise may be worth considering if you want to become a business owner but prefer an established business model, training, systems, and ongoing support. Carefully evaluate the investment, fees, responsibilities, and Franchise Disclosure Document before deciding.
What businesses can I start after being laid off?
Potential options include home-based businesses, consulting, professional services, home services, and franchises. The best business option depends on your skills, available capital, experience, location, and long-term goals.
Can I start a home inspection business without previous inspection experience?
Requirements vary by state. Some states require specific education, examinations, licensing, or supervised experience. Before starting a home inspection business, check your state’s current requirements and determine what training you need.
