With the impact of the Covid-19 pandemic, there must have been several words or phrases that you would have heard thrown about.
Layoffs, recession, job losses, unemployment relief and stock market crash would have been some of them.
However, there is one occurrence that has been quite common during this time, but a lot of people are unfamiliar with the name. – Furlough!
What is the Meaning of Furlough?
Quite simply, this refers to a mandatory leave an employee takes from their job based on decisions from their company’s management. These decisions are usually influenced by a national or global pandemic, natural disaster or government shutdown which directly impacts the company’s operations.
Furlough typically occurs when an organisation is unable to afford its payroll due to insufficient funds and a volatile socio-economic climate. As a result, employees may see a reduction in their working hours per day or working hours per week. Salaries will be reduced. In more severe cases, employees may experience a total elimination of their working hours and salary for a specified time.
Workers who have been placed on furlough do retain some company benefits because the individual is still technically a part of the company. They usually retain their insurance, health and retirement benefits they would have had.
Finally, furlough does not mean the employee is fired. It is essentially an involuntary, temporary leave of absence from work during which time the person is still legally employed and may return to their post once the crisis subsides.
What is the Difference Between Furlough and Layoff?
In both furlough and layoff situations, companies are aiming to cut costs due to a slow in business activity. It is also very common for both furloughed and laid off employees to seek unemployment relief from the State to ease the economic burden of being jobless.
Laid off employees can also be offered a severance package. Usually determined by the years of work and value the employee would have provided to the company, sustains that employee while they are unemployed. Furloughed employees are not offered severance.
Perhaps the two fundamental differences between furlough and layoff is furlough periods are usually of a temporary nature. Layoffs are permanent.
The other main difference is that laid off employees are no longer regarded as being part of that organisation anymore. As such, they are no longer provided with health or insurance coverage by that company.
How to Move Forward after a Furlough or Layoff?
Whether it’s a furlough leave or you’ve been laid off, either way, it’s a time of uncertainty. Every uncertain time therefore, needs a solid plan of action to bring a level of stability and assurance your way.
- How Does This Affect Me?
The first step is analyzing your situation and its impact on your finances. The approach will be different based on whether it’s a furlough period or a layoff. If you’ve been furloughed, you need to assess how much your salary has been reduced by. Can this sustain you? Can you still claim insurance and other benefits from the company?
If you’ve been furloughed and your finances are stable, you may be in a position to wait it out. However, if your working hours and salary have been dissolved altogether, your bills are mounting or worse, if you’ve been laid off, then you should definitely begin a job search.
- Communicate with Your Employers and Stay Updated
Be in regular communication with your employer as to whether your position is likely to be retained once the crisis is over. Additionally, stay informed about developments in the economy. Read press reports and government press releases to determine how the economy is performing and whether the prospect of you returning to work is any better. If your employer offers no positive updates, start looking for other opportunities.
- Apply for Unemployment Relief
Both furloughed and laid off employees are can apply for this benefit, though provisions may vary among Caribbean islands. Regardless, you need some basic income if your regular source has been compromised. Therefore, be aware of whatever relief grants are available that you can qualify for, and apply promptly.
- Increase Your Skill Set
The time you’re home may just be the opportunity to invest in yourself to better your career opportunities in the future. While at home, take full advantage of online courses and skill-building activities to upgrade your resume, improve your marketability and secure a more lucrative job.
Job Hunting Tips While on Furlough
If you’re looking for a new job, it would be in your best interest to find out what your former company’s position is on this, especially as they may still be paying insurance premiums on your behalf. Would your company be open to you performing part-time work? Or working for a competitor? To avoid any legal action, find out what the implications are if you’re job hunting, if any, to avoid any legal consequences.
- Update Your Resume –
After a global crisis, the job market usually changes. Employers will re-evaluate the skills they need and recruit candidates who possess them. When job searching, keep in mind the technological, communication or leadership skills that employers may now be looking for. To secure a job post-pandemic, you will need to update your resume with in-demand skills.
- Perfect Your Interviewing Skills –
Given budgets are reduced and business activity slowed, employers may be a lot more selective about who they hire . Now is an excellent time to perfect your interviewing skills, have that crisp outfit ready, update your references or seek additional recommendations!
The good news is that as a furloughed employee, you weren’t fired, so it wouldn’t reflect badly on your work ethic. The bad news is that you’ve been furloughed, so you will have to convince a hiring company why they should hire you, when another company chose to let you go.
Network online, pay attention to companies’ reports and introduce yourself in different circles. However, keep in mind you may have to settle for the jobs available which may or may not necessarily be your dream job.
