Whispers of layoffs can spread through a company like wildfire. Fearing being terminated, some workers are ready to cut their losses, give notice and begin their new job search.
Below are some reasons why that is probably not the most prudent choice:
Quitting precludes drawing unemployment
Some reductions in force (RIF) are an inevitable result of a sluggish economy or the threat of tariffs. They have nothing to do with your personal work record or productivity on the job. So, it makes no sense to quit before a layoff and miss out on the financial benefits of unemployment compensation.
It’s easier to find a job when you already have one
There’s a workplace perception that an unemployed person lacks some crucial skills for their chosen profession, or they would otherwise already be employed. That’s why many workers choose to launch their search for a new job while still employed at their current company.
You could be eligible for a severance package
Depending on your position and role within the organization, you could be offered a severance package that could make your life a little bit easier after a layoff. You will likely be asked to sign a severance agreement at your exit interview, which is the time to ask for any additional benefits that might aid you in your next phase of life.
Take time to review before signing
You don’t have to sign the agreement without getting it legally reviewed. Don’t allow the HR representative to push you to sign anything that you don’t fully understand. Once you sign the severance agreement, you are officially separated from your employment and unlikely to receive any further benefits from them.