Accepting a severance package can be a big transition, and it’s important to take a strategic approach to ensure you’re setting yourself up for success moving forward. Here are some steps to take after accepting a severance package:

1. Review the Severance Agreement Thoroughly

• Understand Your Financials: Make sure you know exactly what you’re receiving (lump sum, installments, etc.) and when. Take note of any conditions attached, such as non-compete clauses, severance pay tax implications, or restrictions on speaking about the company.
• Consult a Lawyer (if necessary): If the agreement is complex or unclear, or if you feel unsure about the terms, it’s a good idea to consult a labor attorney. They can help you understand your rights and ensure you aren’t missing out on any entitlements.

2. Budget and Plan Your Finances

• Assess Your Finances: Evaluate your current savings, severance pay, and other financial resources. Create a budget that accounts for your living expenses and consider how long the severance will support you.
• Review Benefits and Insurance: If your health benefits are tied to your job, find out how long they’ll last post-severance. You may need to consider COBRA or other insurance options.
• Tax Planning: Severance pay is usually taxed as regular income, so it may bump you into a higher tax bracket. Plan accordingly by consulting with a tax professional.

3. Apply for Unemployment Benefits (if applicable)

• Check Eligibility: In many cases, severance pay doesn’t disqualify you from unemployment benefits, but it depends on your state and the specifics of your severance. Apply as soon as possible to avoid delays in receiving payments.
• Gather Documentation: You’ll need your severance agreement, recent pay stubs, and other documents to apply.

4. Review Your Resume and Update LinkedIn

• Assess Your Career: Take stock of your career journey so far. What do you want to do next? Is it time to pivot to a new industry or role, or would you prefer to continue in a similar field?
• Update Resume & LinkedIn: Make sure your professional profiles reflect your most recent experience and achievements. Tailor your resume for the type of work you’re aiming for.

5. Network and Reach Out

• Reconnect with Contacts: Let your professional network know that you’re transitioning and looking for new opportunities. You never know who might have a lead or offer advice.
• Join Professional Groups: Consider attending networking events, workshops, or joining online communities relevant to your field. Meeting people in your industry can lead to job opportunities or collaborations.

6. Consider Your Next Steps: Job Search vs. Entrepreneurship

• Job Search: If you’re planning to return to work in a similar capacity, start applying for jobs. Tailor your cover letters and applications to fit each opportunity and stay organized with a job search tracker.
• Start a Business: If entrepreneurship is appealing to you, now could be the perfect time to start a business. Think about the skills and experiences you’ve gained that can translate into a solopreneur venture or freelancing.
• Up-skill or Reskill: If you’re thinking of pivoting to a new career, take the time to upskill or reskill through online courses or certifications. This can help you stand out in a competitive job market.

7. Take Care of Your Mental and Emotional Well-being

• Allow Time to Process: Losing a job can be emotional, even if it’s part of a larger life plan. Take some time to reflect, decompress, and regain your sense of direction.
• Consider Career Coaching or Therapy: If you’re struggling to adjust, working with a career coach or counselor can provide valuable guidance and emotional support.

8. Plan for Your Long-Term Career Strategy

• Evaluate Your Goals: What do you really want from your career moving forward? Consider factors like work-life balance, company culture, career growth, and financial goals. This is a good opportunity to reassess your priorities.
• Set a Timeline: While it’s tempting to jump into something quickly, setting a timeline for yourself can provide clarity and prevent rushed decisions. For example, give yourself 1-3 months to explore your options before committing to the next step.

9. Look Into Retirement and Investment Accounts

• Transfer 401(k): If you had a 401(k) or other retirement plans with your employer, look into rolling them over to an IRA or your new employer’s plan (if applicable). Don’t let it sit idly, especially if you’re changing industries or careers.
• Rebalance Your Investments: Depending on your financial situation and long-term goals, you may want to reassess your investment strategy.

10. Stay Organized and Be Patient

• Keep Track of Deadlines: Severance packages often have deadlines or conditions that must be met (e.g., filing for unemployment, accepting a job offer). Keep a calendar or set reminders for important tasks.
• Stay Persistent: The job market can be competitive, and transitioning into a new career or starting a business can take time. Stay persistent, and keep networking and applying until you find the right opportunity.

What’s your next move after accepting the severance package? Are you considering a job search, or maybe diving into something new like a business or freelance work?