So far I’ve discussed how to avoid being laid off by being a great employee, how to recession-proof your career, and how to financially prepare just in case you are laid off. I’ll assume that you’ve already read those articles because they are important in the process of surviving a layoff. Even if you are the best employee possible in your specific job, factors outside of your control could result in you losing your job. What should you do should you get that pink slip? This list of Six Steps should help.

#1 Understand the terms of your layoff

Many companies will offer some sort of severance package depending on a variety of factors. Request a meeting or at least a brief call you’re your HR representative. Make sure you understand the severance package, how much money you receive, when you should expect the payment, and how long the company will continue health insurance, life insurance, and other benefits.

Another important point is to collect everything the company owes you. Submit outstanding expenses and “cash-in” your unused vacation and paid time-off. If you have vested stock options, learn how to exercise them and about any restrictions or penalties.

Here is a great article on how to negotiate with your company after a layoff.

#2 Apply for Unemployment

As soon as possible, apply for unemployment. Many hard working individuals shun at the thought of a free handout but you must swallow your pride and survive financially. Unemployment rules differ from state to state. Here is a brief overview as to how to apply and collect unemployment.

You want to apply immediately because it could take a few weeks before the checks start arriving.

#3 Get COBRA (maybe)

COBRA (Consolidated Omnibus Budget Reconciliation Act) is simply a way to keep your health insurance between jobs. I’m not an expert on COBRA so you’ll need to check the Department of Labor for all the details. However, I can tell you that you have 60 days to decide if you need COBRA coverage.

Since COBRA is retroactive, I suggest that you do not elect for COBRA unless you need it or you are close to the 60 day time limit. For instance, if on day 30 without coverage you break your ankle, you can apply for COBRA on day 31 and that emergency room visit is covered. If you haven’t started a new job by day 55, however, I’d get COBRA, because on day 61 you cannot apply for COBRA and you are essentially uninsured. 

The downside of COBRA is that it is expensive. You pay both your pay-period contributions as well as the contributions your employer made to cover you. If you pay $300 per month for health insurance, you could wind up paying $600 a month.

So, get COBRA only if you have a medical expenditure that is greater than the cost of COBRA (if you have a $100 doctor visit, don’t get COBRA) or if your 60 days are almost expired.

#4 Assess your finances

I already discussed this at length in my article, Six Steps…to Financially Surviving a Recession. Specifically, read steps 1 – 4 and take action!

#5 Send Thank you notes to your former employer

What? I know you’re thinking, “You’ve got to be kidding me! Those $#%#@$ laid me off!” Yes, they did lay you off, but hear me out.

Business is about relationships. A clichéd phrase, but true. I suggest that you send a thank you note to your boss, your bosses boss, people you worked with (who are still with the company), HR department representatives and the senior most executives in your company. If you work for IBM, send a thank you note to CEO, Samuel J. Palmisano. Microsoft, send one to Steve Ballmer.

Your note should be positive. Thank the recipient for the opportunity to work for the organization. If you worked with the person, make it personal. Handwrite the note and be brief. Do not state anything such as, “If a position opens, please keep me in mind.” Others may disagree with me but the purpose is to show authentic gratitude. By ending a thank you note asking for a job shows your true motivation.

Why should you do this? First, it is a nice thing to do. Second, how many other people who were laid-off do you think wrote a thank you note? Likely none. This act of appreciation may help you in your job search. A position in the company might open. Someone might be so impressed, they may tell a colleague in another firm about you and your work and recommend you. This one act of appreciation could have huge positive consequences.

Don’t burn bridges; build them.

#6 Take care of yourself

Getting laid off can be a huge blow to your ego. This time in your life can be worrisome, frightening, anxious, and depressing. Try to use this time as a time to reflect. Eat right. Exercise. Get enough sleep. Be proactive in looking for a new job. Engage in activities that are enriching. Do things you could never do because you were at work. Volunteer. Help a neighbor. Journal. Pray. Meditate.

Keep your wits about you and take care of yourself; mind, body, and soul.

I haven’t touched on the job search side of a layoff because these are the first steps you should take IMMEDIATELY upon being laid off. I will be writing Six Steps…Job Searching after you’re laid off in the next few days.